Membership > Insurance
 
 

As per the Regulations of NCDEX, all Members of the Exchange are required to take an insurance policy for the risks associated with their business operations. This is a requirement to be complied with, by all members prior to membership approval by the Exchange. The insurance cover should be for a minimum of Rs. 5.00 lacs ( Rupees Five Lacs only).

Keeping in view the risks associated with the commodities markets and other operational risks faced by brokers during normal course of their business, NCDEX has negotiated and finalized the terms for insurance with New India Assurance Co. Ltd.
Coverage

      The coverage for the NCDEX members is as under -
  1. Infidelity of the Employees
    • Loss due to dishonest or fraudulent acts of employees.

  2. Financial Loss on account of loss of Securities & Collateral in his custody, & his own Property due to
    • Burglary,
    • Threat to insured / his employee

  3. Loss while acting upon, dealing in or handling and possessing in good faith the Securities which prove to be
    • Counterfeit, or
    • Fraudulently altered, or
    • Forged, or
    • Lost or stolen

  4. Legal Liability on account of Incomplete Transactions due to Forgery/ alteration of documents
    • Physical Loss of the Securities
    • Counterfeit / fraudulently altered / forged / lost or stolen Securities
    • Deceived Identity

  5. Loss due to Forgery / alteration of Documents

  6. Computer Crime Indemnity due to / for
    • Fraudulent input of electronic data into computer systems
    • Fraudulent modification of electronic data/ instructions
    • Malicious destruction of Electronic data
    • Loss of Electronic Data Media due to Burglary/Robbery/ Theft
    • Fraudulent distortions in electronic communication
    • Forged Telefacsimile
    • Computer Virus
    • Verification / reconstitution / correction of distorted computer instructions

  7. Legal Fees to defend any claim, suit or legal proceeding with prior consent of the Insurer

  8. Third Party Liability (Including Arbitration) due to
    • Negligent Act/Error/Omission of Insured/his employees
    • Dishonest acts of Insured's employees

Exclusions
  1. Loss due to
    • War and kindred Perils and Nuclear Perils etc.
    • Natural Disasters
    • Liability of Sub Brokers
    • Insolvency of the Broker
    • Proprietary Trade
    • Insured's / Insured Dealers' personal transactions
    • Liability arising out of any contract
    • Loss of Potential Income
    • Cost of Establishing a Loss / preparing a Claim
    • Fines, Penalties and Punitive Damages

  2. Availability Of Insurance
    • The Insurance Cover is compulsory for every member Broker of the Exchange.
    • This Insurance Cover is provided by the following Office of the Insurer -
      NEW INDIA ASSURANCE CO LTD
      DO 112700,22, 2nd Floor,
      Mittal Chambers,
      Nariman Point,
      Mumbai - 400021

      Tel.: 022 2202 0577,2202 0308,2202 0714
      Fax: 022 2202 0608

      E-mail ID : vwm@rediffmail.com
                      deepak.pathare@newindia.co.in


  3. Claim Settlement Procedure
    • Immediate Notice to the Insurer at the above address
    • Simultaneous Notice to the Exchange
    • Duly filled Claim Form has to be sent to the Insurer giving all the details about the loss, its occurrence, amount of loss
    • Insurer will appoint a surveyor to assess the admissibility, amount etc. of Loss
    • Insured Broker will have to provide all required information to Surveyor / Insurer / Exchange
    • Insurer will settle the loss of the client under information to the Exchange.

Please Note that above information are only indicative. For full details, please refer the detailed Policy Document or contact Insurer at above referred address
Modification / Changes in the Policy for 2006 - 07
Please note that the certain modification / additions and changes have been introduced in this Policy for the year 2006 - 07. These changes are well explained in the renewal Letter attached. With this Letter we are also displaying revised

  1. Questionnaire cum Proposal Form, and
  2. Premium Rating Chart
      Every Broker Member is advised to be guided by these.

    Note :
  • Members are requested to contact New India Assurance and ascertain the latest facts prior to taking the policy.
  • Display of this information on our site should not be construed as any form of canvassing business on behalf of New India Assurance Co. Members are free to take similar policy offered by any other insurance co.


       Please click here to download the Insurance form for New India Assurance Co. Ltd.