IDBI Federal Life launches Wealthsurance Premier Insurance Plan

IDBI Federal Life launches Wealthsurance Premier Insurance प्लान The brand new product aims to be one of the best in the category as it is a hassle free, single premium ULIP. Seeking to target high net worth customers, private insurer IDBI Federal Life insurance Company Limited announced the launch of their wealth-building plan, IDBI Federal Wealthsurance Premier Insurance Plan. The brand new product aims to be one of the best in the category as it is a hassle free, single premium ULIP, with a wide array of investment funds and protection benefits bundled in a low charge structure aimed to deliver one of the best-in-class returns in this category. Announcing the launch of Wealthsurance Premier, G V Nageswara Rao, MD and CEO of IDBI Federal Life Insurance, said: “Wealth creation is a long-term process with prudent planning playing an important part. Wealthsurance Premier is a great combination of a wealth and protection plan that assists the customers in wealth creation and management in the long term. At IDBI Federal, we take pride in our innovation. With Wealthsurance Premier, we have customized the product to suit the HNIs by making it a single premium plan that allows one to build wealth for the long term in tranches, with the flexibility of 13 varied investment fund options across the risk-return continuum for active wealth management. What is even better, Wealthsurance Premier can insure HNI’s wealth plan against death, 13 accidental injuries, 17 major diseases, and serious illnesses requiring hospitalization or disablement which prevents engaging in an income-earning activity.” IDBI Federal Wealthsurance Premier Insurance Plan is a single premium ULIP designed keeping in mind specific requirements of the HNI class. With a minimum investment option of Rs. 5 lakh and top-ups at Rs. 10,000, the plan has low and level charges. There is no policy administration and allocation charges for premiums above Rs. 25 lakh. The minimum policy term is for 5 years and maximum of 75 years less the age of entry. To illustrate, at a gross rate of 10% return, due to one of the lowest charges Wealthsurance Premier can deliver 8.53% IRR (without considering mortality charges and service tax) and an IRR of 7.83% (after considering mortality charges and service tax for a Rs. 1.25 crore insurance cover) for a Rs. 25 lakh premium for a term of 15 years. Being a comprehensive wealth management solution, Wealthsurance® Premier offers a wide range of investment options like assured returns, variable returns linked to market performance or returns linked to equity market but with protection of capital. Also, tax benefits are availed on the contributions, returns and benefits under sections 80C and 10(10D). In effect, Wealthsurance® Premier is a tax-free wealth management account as money put into it grows without any tax. One can also look at this product for gifting a life time of savings to children or grand children. Having started in March 2008, IDBI Federal is one of the fastest growing new insurance companies with over 275,534 policies issued and a Sum Assured of Rs. 14,924 Crore. It has launched several innovative plans like Wealthsurance, Retiresurance, Homesurance, Bondsurance, Microsurance, Termsurance, Incomesurance and Healthsurance

Insurance insulates too much

Insurance insulates too much

By creating a "security blanket" for its insureds, an insurance company may inadvertently find that its insureds may not be as risk-averse as they might otherwise be (since, by definition, the insured has transferred the risk to the insurer), a concept known as . To reduce their own financial exposure, insurance companies have contractual clauses that mitigate their obligation to provide coverage if the insured engages in behavior that grossly magnifies their risk of loss or liability.^{[ ]}

For example, life insurance companies may require higher premiums or deny coverage altogether to people who work in hazardous occupations or engage in dangerous sports. Liability insurance providers do not provide coverage for liability arising from committed by or at the direction of the insured. Even if a provider were so irrational as to want to provide such coverage, it is against the public policy of most countries to allow such insurance to exist, and thus it is usually illegal

Current projections

Current projections

Income and Cost Rates Under Intermediate Assumptions. Source: 2009 OASDI Trustees Report.

Projections were made by the Board of Trustees of the Federal Old-Age and Survivors Insurance and Federal Disability Insurance Trust Funds (OASDI) in their 69th annual report dated May 12, 2009. According to these projections, based on the system's current revenue and benefit structure, expenses will exceed tax receipts beginning in 2016. The trust fund is projected to continue to grow for several years thereafter because the analyses assume interest income from loans made to the is available to cover the difference.

However, the funds from loans made have been spent along with other revenues in the general funds in satisfying annual budgets. At some point, however, absent any change in the law, the Social Security Administration will finance payment of benefits through the net redemption of the assets in the trust fund. Because those assets consist solely of U.S. government securities, their redemption will represent a call on the federal government's general fund, which for decades has been borrowing the Trust Fund's surplus and applying it to its expenses to partially satisfy budget deficits. To finance such a projected call on the general fund, some combination of increasing taxes, cutting other government spending or programs, selling government assets, or borrowing would be required.

The balances in the trust fund are projected to be depleted either by 2037 (OASDI Trustees' 2009 projection), or by 2052 (Congressional Budget Office's projection) assuming proper and continuous repayment of the outstanding treasury notes. At that point, under current law, the system's benefits would have to be paid from the FICA tax alone. Revenues from FICA are projected at that point to be continue to cover about 76% of projected Social Security benefits if no change is made to the current tax and benefit schedules

Home insurance

Home insurance

Home insurance provides coverage for damage or destruction of the policyholder's home. In some geographical areas, the policy may exclude certain types of risks, such as flood or earthquake, that require additional coverage. Maintenance-related issues are typically the homeowner's responsibility. The policy may include inventory, or this can be bought as a separate policy, especially for people who rent housing. In some countries, insurers offer a package which may include liability and legal responsibility for injuries and property damage caused by members of the household, including pets

Confirming a Car’s True Identity

IBC helps police verify vehicle identification numbers (VINs) to ensure that recovered stolen cars get returned to their rightful owners more quickly, and that consumers can be confident about a car’s history before they buy.

Vehicle identification numbers (VINs)

All cars built for sale in North America since 1981 have a vehicle identification number (VIN) that consists of 17 letters and numbers. This is like the car’s fingerprint. A car’s VIN:

• is engraved on a metal plate on the driver’s side of the dashboard and in other places on the car;
• provides basic information about the car, including the make and model and where and when it was built;
• stays the same no matter how many times the car changes owners and license plate numbers;
• can be used to track the history of the car – e.g., whether it has been in any serious crashes or been stolen, and how many owners it has had;
• is used by insurance companies to set accurate premiums; and
• can help police find the rightful owner if the car is stolen.

VINs of stolen cars

Car thieves often try to hide the fact that a car is stolen by:

• removing the VIN plate;
• scratching out the VIN number;
• altering the VIN (e.g., turning a 3 into an 8);
• replacing the real VIN with a made-up one; or
• replacing the real VIN with a copy of another car’s VIN (sometimes called “cloning”).

IBC’s VIN programs

In Alberta and Ontario, IBC assists police in determining the real VINs of stolen cars that are recovered with missing or altered VINs. If IBC cannot determine the real VIN and identify the car, the Ministry of Transportation will assign the car a new VIN.

Once the real VIN has been identified or a new VIN assigned, IBC removes all false or old VINs from the car before installing a brass plate with the correct VIN on the driver-side door frame and placing a sticker with the correct VIN on the dashboard where the original VIN plate would be.

IBC can also:

• reproduce the original VIN on a car whose VIN has been lost or damaged for some other reason (e.g., the dashboard was replaced);
• create a new VIN for cars that are built from scratch or from kits, or assembled from parts of other cars; and
• create VINs for trailers (since April 2004, all trailers in Alberta require a standard VIN).

Branding Protects Everyone

Any car registered in a Canadian province or territory has a permanent record that is linked to its . When a car is stolen or severely structurally damaged (sometimes called a “write-off”) authorities can add a note, or a brand, to that record.

Four different brands can be assigned. The names vary depending on the province, but the categories are essentially the same:

• Irreparable – a badly damaged vehicle that can only be used for parts or scrap metal. A car with this brand cannot be driven.
• Salvage – a vehicle that can be repaired, but cannot be driven until an inspector has deemed it safe.
• Rebuilt – a vehicle that was branded “salvage,” but has since been rebuilt and passed a safety inspection.
• Stolen – a vehicle that has been reported stolen. This brand can be assigned or cancelled only by police, and is cancelled only when the vehicle is recovered.

Branding fights crime and protects consumers

Branding makes it more difficult for criminals to pass off stolen or unsafe vehicles to the unsuspecting public. In this way, it protects consumers and makes roads safer.

Because every vehicle has a VIN that is linked to the vehicle’s record, crooks need to work very hard to make stolen cars look legitimate. Often, this involves removing the VIN from a car in the junkyard and putting it on a stolen car to mask its identity.

By disguising its true identity, a criminal can sell you a car that is stolen or that has serious hidden damage. Many unsuspecting consumers have purchased stolen vehicles and later had them seized by the police with little hope of recovering the money they paid. Others have bought seemingly fit vehicles, only to discover that structural damage makes the car undriveable.

If junk vehicles are branded irreparable or salvage, their VINs are of little use to criminals. Branding makes it very difficult for crooks to disguise the identities of stolen and damaged vehicles.

Branding:

• enhances road safety by ensuring proper repair of “salvage” vehicles;
• protects consumers by making stolen cars and car parts more difficult to resell; and
• helps police identify stolen vehicles.

Types of Personal Injury Fraud

Premeditated personal injury fraud – auto insurance

The common auto insurance scams described below are carried out by seasoned criminals, who attempt to claim debilitating injuries in order to get income replacement and other financial benefits from insurance companies. These sophisticated criminals often plan accidents, hire witnesses to back up their stories, and provide all kinds of false documentation to support their claims.

Swoop and squat

In this scenario, a “swoop” car suddenly speeds up and cuts off the “squat” car (sometimes an innocent person in the wrong place at the wrong time and sometimes an accomplice). Unable to stop in time, the “squat” car rear-ends the “swoop” car. Usually, everyone who is in on the scam claims some sort of injury, and makes an auto insurance claim.

This sounds harmless enough – what’s a little fender bender? But in the past this scam has been known to go horribly wrong, with innocent victims being seriously injured and even killed.

Juan and Maria Lopez and their two-year-old daughter Joanna were burned alive when two men tried to stage a car collision on a California freeway in 1997. The criminals chose to cut-off a tractor-trailer (the “squat” vehicle), forcing it to stop suddenly. The Lopez’s, behind the tractor trailer, also stopped suddenly and were rammed from behind by a gravel truck, killing the young family.

Fortunately, such a tragic result is not the norm, but you never know what will happen when cars collide at high speed. Real accidents are dangerous enough. Criminals can try to stage a “safe” accident, but they have no control over road conditions and the reactions of other drivers. This happens every day on Canadian streets and highways, putting everyone at risk.

Drive down

The criminal appears to yield and waves to the innocent victim to proceed with a merge or lane change. As the victim merges, the criminal drives into the innocent driver, and later denies that he or she had waved the victim on.

Sideswipe

The criminal targets an innocent driver and purposely collides with the side of the target vehicle. This usually occurs in busy intersections with dual left turn lanes. If the victim in the inner lane drifts even a little into the outer lane, the criminal intentionally causes a collision.

Imaginary accidents

In some auto insurance fraud schemes, no accident ever really happens. The criminal reports an accident and subsequent injury, and makes a claim, but the accident only exists on paper. In some cases, police are called to the scene of an alleged “hit and run,” where only one car is present, and damage has been fabricated.

Seat sales

This is a common feature of staged accidents. The principal perpetrator of the accident will “sell” passenger spaces in the car for a set price or a percentage of the passenger’s insurance claim. In some cases, the passengers do not even ride in the car when the accident occurs.

Premeditated personal injury fraud – liability insurance

This type of fraud is most commonly referred to as a “slip/trip and fall.” And it is as simple as it sounds. The criminal pretends to have been seriously injured on your property – at your place of business or your home. The amounts awarded for these claims are covered by your liability insurance, commercial insurance or under occupiers’ liability.

Types of Personal Injury Fraud

Premeditated personal injury fraud – auto insurance

The common auto insurance scams described below are carried out by seasoned criminals, who attempt to claim debilitating injuries in order to get income replacement and other financial benefits from insurance companies. These sophisticated criminals often plan accidents, hire witnesses to back up their stories, and provide all kinds of false documentation to support their claims.

Swoop and squat

In this scenario, a “swoop” car suddenly speeds up and cuts off the “squat” car (sometimes an innocent person in the wrong place at the wrong time and sometimes an accomplice). Unable to stop in time, the “squat” car rear-ends the “swoop” car. Usually, everyone who is in on the scam claims some sort of injury, and makes an auto insurance claim.

This sounds harmless enough – what’s a little fender bender? But in the past this scam has been known to go horribly wrong, with innocent victims being seriously injured and even killed.

Juan and Maria Lopez and their two-year-old daughter Joanna were burned alive when two men tried to stage a car collision on a California freeway in 1997. The criminals chose to cut-off a tractor-trailer (the “squat” vehicle), forcing it to stop suddenly. The Lopez’s, behind the tractor trailer, also stopped suddenly and were rammed from behind by a gravel truck, killing the young family.

Fortunately, such a tragic result is not the norm, but you never know what will happen when cars collide at high speed. Real accidents are dangerous enough. Criminals can try to stage a “safe” accident, but they have no control over road conditions and the reactions of other drivers. This happens every day on Canadian streets and highways, putting everyone at risk.

Drive down

The criminal appears to yield and waves to the innocent victim to proceed with a merge or lane change. As the victim merges, the criminal drives into the innocent driver, and later denies that he or she had waved the victim on.

Sideswipe

The criminal targets an innocent driver and purposely collides with the side of the target vehicle. This usually occurs in busy intersections with dual left turn lanes. If the victim in the inner lane drifts even a little into the outer lane, the criminal intentionally causes a collision.

Imaginary accidents

In some auto insurance fraud schemes, no accident ever really happens. The criminal reports an accident and subsequent injury, and makes a claim, but the accident only exists on paper. In some cases, police are called to the scene of an alleged “hit and run,” where only one car is present, and damage has been fabricated.

Seat sales

This is a common feature of staged accidents. The principal perpetrator of the accident will “sell” passenger spaces in the car for a set price or a percentage of the passenger’s insurance claim. In some cases, the passengers do not even ride in the car when the accident occurs.

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Premeditated personal injury fraud – liability insurance

This type of fraud is most commonly referred to as a “slip/trip and fall.” And it is as simple as it sounds. The criminal pretends to have been seriously injured on your property – at your place of business or your home. The amounts awarded for these claims are covered by your liability insurance, commercial insurance or under occupiers’ liability.

Personal Injury Fraud

Personal injury fraud – as it pertains to home, car or business insurance claims – is any act or omission intended to result in a financial insurance benefit for an injury that is nonexistent, exaggerated or unrelated to any accident that would be covered by the policy. No matter what the circumstances, personal injury insurance fraud is a crime.

Personal injury insurance fraud can be “opportunistic” or “premeditated”:

Opportunistic personal injury insurance fraud – most commonly an inflated claim. Examples:

• A health care professional exaggerates the severity of a patient’s legitimate injury in order to increase the claim amount.

• A person who is actually injured exaggerates the extent of his or her injury or required recuperation time. Often such injuries are classified as “malingering.” Assuming that insurance is paying for lost income, the individual may be seeking a “paid vacation” courtesy of the insurer.

Such cases usually necessitate extra medical visits and medical examinations, thus adding to the societal cost of this crime.

Premeditated personal injury insurance fraud – when someone devises a way to make an insurance claim. Premeditated fraud often involves some extreme action. Example:

• A person intentionally causes a car collision or falls down a neighbour’s stairs, and then collect benefits from his or her insurance company for a nonexistent injury.

This kind of fraud also has related financial and human costs, as unsuspecting victims of staged car collisions often suffer very real injuries.

What Happens to Stolen Cars, the Victims and the Thieves

What Happens to Stolen Cars?

Stolen cars usually end up in one of the following places:

1. In chop shops
2. In shipping containers at ports in Canada or overseas
3. At other crime scenes
4. Abandoned in random locations
5. In the hands of unsuspecting consumers

Chop shops

About 50% of stolen vehicles end up in "chop shops,” where stolen cars are dismantled into parts to be sold off separately, often to legitimate businesses unaware the parts are stolen. This is a big business that accounts for millions of dollars a year in profits for criminals.

Shipping containers

Each year, tens of thousands of cars are stolen for export to other countries where they can be sold for many times their original market value. In some cases, these cars are recovered at Canadian ports before they reach their intended destinations. IBC is actively working on having CBSA take a more active role in preventing these vehicles from leaving Canada.

Where are all the stolen vehicles going?

Crime scenes

Many stolen cars are taken to commit another crime. Thieves take advantage of owner negligence, grabbing the first vehicle they can find. Why would criminals risk using their own cars when they can very easily use a car that’s been left running in a driveway?

Abandoned

Sometimes, thieves take cars just because they can or because they want them for transportation. It used to be called “joyriding,” but that term takes away from the seriousness of the crime. Auto thieves have no regard for people or property and often vandalize then abandon the cars that they steal.

Unsuspecting consumers

Every year, hundreds of unassuming consumers buy stolen cars and face having their new cars seized by police. Stolen cars are often sold for a quick profit – sometimes to fund other criminal activity like drug smuggling and even terrorism. Thieves mask the true identity of a stolen vehicle by changing its vehicle identification number (VIN).

A consumer who unknowingly purchases a stolen car has no recourse, and no way to get his or her money back.

What Happens to the Victims of Auto Theft?

Everyone is a victim of auto theft, whether they have had a car stolen or not. On average, $35 per auto insurance policy goes to pay for the cost auto theft.

1. Owners are upset and inconvenienced when their cars are stolen.
2. Unsuspecting buyers of stolen cars suffer financial loss.
3. Those who steal because they can often damage the vehicles they steal and other property that may be inside it.
4. There are significant time and expenses involved in reporting, processing and settling vehicle insurance claims. This impacts many stakeholders, including policyholders, insurance companies and investigators, taxpayers, police and society.
5. Stolen vehicles are frequently used while committing other crimes (e.g., break-and-enter robberies of homes) and in police chases when, owing to the thieves' reckless driving, they may be involved in the injuries or deaths of innocent people.
6. Every year approximately 40 people die and 65 are injured as a direct result of auto theft. A stolen car is just like a loaded gun when it’s in the hands of a thief. Car thieves have absolutely no regard for public safety and the rules of the road.

And What Happens to the Thieves?

Regrettably the courts still look at auto theft with more compassionate eyes. Of course, some of their hands are tied by the restrictions within the Youth Criminal Justice Act.

IBC has been working to make the courts aware of the impact of auto theft – that it is not a victimless crime. IBC has made a victim impact statement available for all Crown Prosecutors. Additionally, IBC has also been actively advocating for changes to the criminal code to have auto theft treated as a violent and indictable offense.

Protecting Canadians Against Natural Disasters

Protecting Canadians Against Natural Disasters

Canada’s home, car and business insurers are committed to better preparing communities for natural disasters. As part of this commitment, the industry recently donated $500,000 to support groundbreaking research into making houses more resistant to extreme weather.

The research is being conducted by The Faculty of Engineering from the University of Western Ontario at a one-of-a-kind research facility called The Insurance Research Lab for Better Homes. It allows for the study of damage to houses from wind, snow, rain and mould by simulating extreme weather, including winds of up to 320 km/h – the equivalent of a Category Five hurricane.

The project permits researchers to assess the structural integrity of houses, and develop cost-effective ways to retrofit existing houses and build stronger ones in the future.

The insurance industry is a leader in natural disaster mitigation. In 1998, insurers partnered with Western to create the – a research institute committed to reducing the loss of life and property damage caused by severe weather and earthquakes.

Evidence suggests that the severity and frequency of extreme weather will continue to rise. A financially strong insurance industry will be there to help rebuild Canadian communities when disaster strikes. And, through initiatives like The Insurance Research Lab for Better Homes, it can help make Canadian communities stronger and better equipped to deal with extreme weather.

The Insurance Research Lab for Better Homes uses a typical 1,900 square foot, two-storey house. Studies will be conducted in a controlled environment inside a hangar. Extreme winds (up to 320 km/h) are simulated using specially-designed “pressure boxes” that apply both air pressure and suction to the house. Researchers will also study the effect of snow, rain and mould.

Premises Risks: Liability Loss Prevention*

General liability insurance policies normally cover property damage and injury of a third party. Liability loss prevention is any measure taken to prevent or minimize these damages and injuries.

Some common liability losses include:

• Damage to the property that you are being paid to work on.
• Damage to property belonging to people other than clients/customers.
• Injury to clients/customers either on your premises or off premises at a job site.
• Injury to people other than clients/customers who may be in the vicinity of your premises or job site.

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Legal Liability

All individuals and organizations have a legal obligation to conduct themselves in a manner that is reasonable and that does not willfully or negligently cause injury or damage to others. Reasonable precautions must be taken in the conduct of your operations to prevent such damage or injury. If you fail to take reasonable care to prevent these things from happening, you may be sued and may be responsible for compensating people for their damages. Precautions such as regular inspections and maintenance should be carefully documented.

Risk Management

1. Take the time to carefully consider the potential liabilities faced by your organization. Decide which are more likely to occur and which could potentially result in the greatest loss. Spend time and resources on the areas of greatest concern that could have the most significant cost or negative impact.

2. Create policies and procedures on how to handle the property of others.

• Keep property in a secure area.
• Ensure property is returned to the correct owner.

3. Keep people safe.

• Do not allow visitors/customers in restricted areas
• Keep all premises, including parking lots and sidewalks, well lit.
• Keep the premises neat and tidy. Implement a regular inspection and maintenance schedule.
  

  I. Inspect shelves (to ensure they will not collapse and that they do not have sharp edges). II. Ensure equipment is well spaced to avoid clutter.

4. Perform pre-inspections on property that belongs to a third party before he/she leaves it in your custody. Document these inspections and make a note of any deficiencies.

• Photograph damaged areas if necessary.
• Note any repairs or replacements needed.
• Ensure that the owner and user sign the inspection form. This helps determine that the owner and user are in agreement regarding the conditions of the property.
• Ensure each party has a copy of the inspection form.
  

5. Complete a final inspection before returning the property.
The property owner and the user should perform the inspection together.

• Compare conditions with the pre-inspection.
• Sign and keep a copy of the final inspection.

6. Ensure enough employees/volunteers are on staff to protect visitors/customers from harm.

• Determine the average and maximum number of clients/customers per day.
• Put more employees/volunteers on duty during heavy traffic periods.
• Provide training to employees/volunteers.
• Ensure that employees/volunteers assist clients/customers if they are using hazardous equipment. For example, self-dispensing machines.

7. Give warning.

• Place warning labels on potentially hazardous products.
• Place signs to deter clients/customers from restricted areas.
• Provide instructions on how to operate equipment, handle materials/products, etc.

8. Implement security measures.

• Install a security alarm.

  i. Place signs in a visible location to warn people that a security system is in place.

• Install electronic surveillance (security camera). Keep in mind privacy restrictions.
• Keep the premises locked after hours.
• Implement a key security policy for premises.

  i. Ensure key-holders are known and that keys are returned after employment or volunteer service ends. ii. Keys should be kept in a safe place.

9. Document retention.

• Consider storing a backup copy of records off the premises. If a fire destroys the building, backup records stored offsite will still be available.
• Consider storing data electronically. Storing data electronically has many advantages such as accessibility and convenient retrieval of data. However, additional considerations such as data security (hackers, crackers, etc.), personnel training and cost need to be considered.

Claims Handling

Claims Handling

1. Follow the company’s emergency procedures and evacuation procedures.

2. Contact emergency services if necessary.

3. Complete an incident/accident report. Documenting the incident/accident may help establish defense against a claim presented at a later date, help analyze the cause of the incident/accident and recommend improvements to prevent similar incidents/accidents in the future.

4. If you plan on making an insurance claim, report the incident/accident to your insurance representative. Provide them with:

• details of the incident/accident; and
• steps that were taken to avoid the incident/accident

5. Take several pictures of the area where the incident/accident occurred.

6. Take down the names and contact information of any witnesses. Obtain and record detailed descriptions of the incident/accident from the victim and witnesses.

7. Document all information related to incidents/accidents.

8. Investigate potential causes and implement preventative measures.

Policy and Procedures*

Policies and procedures are in place to ensure that duties and services are performed in a consistent manner. The benefits of being consistent are:

• Employees understand what is expected of them.
• Disputes may be resolved by determining whether or not policies and procedures have been followed.
• Plans are already in place in the case of an emergency.
• Customers receive a consistent level of service that may increase customer satisfaction.
• It provides proof that your organization has strict performance requirements for employees/volunteers, which, in the end, could improve the defensibility of claims.
• It protects the image of the organization.

Legal Liability

It is important to note that no one can accurately predict what claims will end up in court or what the decision of the court will be. Policies and procedures may be a very effective way to defend against claims and lawsuits, but they must be strictly followed and well documented to be effective. If you have policies that you do not use or follow, you may be in a worse legal position than if you didn’t have them.

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Risk Management

Depending on your organization, other policies and procedures may also be needed. Many organizations are exposed to similar risks, and the following policies and procedures should be considered:

• Screening and Hiring of Employees/Volunteers
• Contingency Plans (Business Continuity Plans)
• Inspections and Maintenance of Buildings/Premises
• Employee Training
• Contract Review (to ensure contracts are analyzed with a view to limiting liabilities)
• Emergency Plans
• Accident and Incident Reporting
• Financial Management
• Privacy
• Ethics
• Employee Discipline and Dismissal

There are many other policies that an organization might create, depending on the different activities and duties that the organization performs. For example, a restaurant may require a policy for food preparation and service and alcohol service.

Occupiers' Liability - Slip/Trip & Fall*

As an occupier, you and/or your organization are required to keep areas such as aisles, stairs, ramps, walkways, driveways and parking lots reasonably safe for persons who are using them. Some common hazardous conditions include:

• ice and snow that has not been cleared
• unexpected elevation changes
• uneven surfaces (e.g., cracks, gaps, potholes)
• slippery surfaces (e.g., wet floors, tile flooring)
• missing or loose handrails on stairs
• debris on walking paths (e.g., boxes in aisles)
• inadequate lighting.

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Legal Liability

An occupier may be held liable for slips, trips and falls if he/she/it fails to provide a reasonable standard of care in keeping the premises free from hazards.

In cases where there is more than one occupier – such as a landlord and a tenant or in the case of shared spaces – it is possible for liability to be shared. Who is held liable depends on the circumstances of the loss.

The following are some of the criteria used to determine whether or not the appropriate standard of care was applied:

• Whether the danger was foreseeable.
• Whether the occupier’s conduct was in accordance with acceptable standards of practice.
• Whether there was an adequate system of inspection (considering the risks involved) in place and carried out.
• Whether the danger was allowed to exist for an unreasonable amount of time.
• The ease with which the danger could have been prevented.

The best way to avoid liability is to prevent losses from occurring by diligently keeping premises free from hazards. This diligence, in combination with thorough and consistent documentation, will be one of the most effective ways to defend your organization against a claim or lawsuit should one occur.

In the case of shared spaces or multiple occupiers such as a landlord and tenant, ensure that the lease agreement clearly states the responsibilities of each party. The agreement should state the areas each is responsible for, who is responsible for inspection, maintenance, repairs, etc., and the liabilities of each.

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Risk Management

1. Develop and implement an Inspection and Maintenance Policy (click here for a sample) that states:

• the purpose of the policy;
• effective and revision dates of the policy;
• how often it is to be carried out;
• how it will be documented and by whom;
• corrective actions to be taken if minimum standards are not met; and
• who is responsible.

2. Use a regular and reasonable cleaning and maintenance program.

3. Perform inspections frequently for hazards or maintenance deficiencies. For example, spills and water at entranceways are common causes of slips, so regularly inspect for wet floors in high-risk areas such as entrances, bathrooms, and beverage-service areas.

4. Create a form to be used during inspections (click here for a sample).

5. Train employees/volunteers to identify and fix hazards.

6. When hazards are discovered, address them using methods such as:

• posting signs or notices in highly visible locations to warn patrons of potential danger;
• erecting barriers to prevent access to hazards;
• conducting repairs; and/or
• removing the hazard.

7. Ensure all areas are adequately lit.

8. Use a non-slip floor treatment (especially when wet or greasy floors are inevitable).

9. DOCUMENT!! Keep records of inspections, repairs and the state of the premises.

Claims Handling

Claims Handling

1. Once a claim or potential claim is identified, immediately contact your insurance representative.
   
2. Record all relevant information surrounding the potential claim like the names and contact information of any witnesses, staff or volunteers that were present or have information relevant to the incident. Have staff/volunteers complete an incident report with all relevant details.
   
3. Refer any discussions with the claimant to your insurer. It is wise to tell employees and/or volunteers that they should not discuss liability with potential claimants and that they should NEVER ADMIT LIABILITY!!!
   
4. Investigate potential causes and implement preventative measures.

Additional Resources

For more information on liquor liability for Special Events. Please note that the following list of resources is not comprehensive. There are other municipal, provincial and federal liquor regulations that need to be followed.

Risk Management

Risk Management

1. Create policies and procedures with meaningful consequences and strictly enforce them. Some useful elements of a policy include:

• Limiting alcohol consumption.
• Ensuring that bartenders are experienced and do not serve obviously intoxicated persons.
• Offering food service.
• Encouraging taxi use.
• Providing reduced/subsidized taxi and hotel rates.
• Encouraging car pools and designated-driver programs.
• Reminding guests before and during the event not to drink and drive and of the other options available.
• Having several trained doormen/bouncers/spotters who remain sober and watch people leaving and encourage/insist on taxi use.
• Informing guests that intoxicated persons will be put into taxis.
• Displaying posters from Mothers Against Drinking and Driving (MADD), Students Against Drinking and Driving (SADD) or similar organizations, outside and around alcohol consumption areas.

Some of these elements may be required by law.

2. Comply with all legislation regarding alcohol. (

3. Ensure proper permits (to sell or serve alcohol) are obtained.

4. Train servers.

• Do not serve or sell alcohol to those under legal drinking age. The age will vary depending on the province or territory.
• Do not serve patrons past the point of intoxication.
• Ensure that servers understand government legislation pertaining to alcohol. Ensure that servers follow the organization’s policies and procedures. Make sure training is documented.

5. Implement a mandatory identification policy.

• Establish the forms of identification that will be accepted.
• Establish when identification needs to be shown. For example, require identification from anyone who is not obviously over the age of 30.

6. Display informational material on government alcohol-related policies and legislation.

• Inform customers that the business will abide by the rules set out by the government.
  

7. Implement inventory controls over alcohol.

• Implement measures to prevent theft (e.g., install security cameras, hire additional personnel, etc.).

8. Regulate hours to sell or serve alcohol. Check with your local authority to determine minimum standards.

9. Use a facility-use agreement if you have rented out a location that you own and where renters may consume alcohol.

• Include a hold-harmless and indemnifying agreement that holds the owner of the premises harmless and indemnifies the owner for losses or damages resulting from the negligent use of the facilities or the serving of alcohol. These clauses may help limit your liabilities. Consult a lawyer for advice on contracts and agreements.

10. Obtain insurance coverage, possibly with higher limits (i.e., higher limits than organizations that do not serve/sell alcohol). Consult your insurance representative.

11. Consider implementing a Zero Tolerance Alcohol and Drug Policy ( a sample.)

• Do not allow employees/volunteers to consume alcohol or drugs while working.
• Do not allow employees/volunteers to drink and drive.
• Do not allow employees/volunteers to work if they appear

Incident and Accident Reporting*

Incident and accident reports are valuable because:

• They capture complaints, accidents and incidents before they become claims.
• They help establish a defense for claims that may be presented years after an incident/accident.
• They serve as the basis for analyzing the causes of incidents and accidents and for recommending risk improvements to prevent similar events in the future.
• They help identify weaknesses in your current risk management policies and procedures to prevent more serious losses from occurring.

Risk Management: Incidents

1. If an incident occurs, attend to those involved to ensure there are no injuries.

2. Complete an incident report (click here for a sample). Incident reports should include at least:

• names and contact information of the reporter and witnesses;
• a detailed description of the incident; and
• recommendations to prevent similar incidents in the future.

3. Contact your insurance representative for advice on whether an incident should be reported to the insurer. Incidents are often reported even if a claim may not come out of them.

4. Keep the report on file:

• Documentation should be kept for as long as necessary to defend against potential claims. The length of time that legal action may be taken by law is called the Statute of Limitations.
• If the reporter is an adult, keep the incident documentation on file for at least three to five years after the Statute of Limitations passes for that type of claim. Your lawyer should be able to advise how long this is.
• If the reporter is a minor keep the incident documentation on file for at least three to five years after the Statute of Limitations passes for that type of claim once the minor has reached the age of majority. Your lawyer should be able to advise how long this is.
• An efficient method of organizing and storing incident reports is in an electronic database where they can be sorted and retrieved based on a number of factors.

5. Review the report to determine the cause of the incident and any loss prevention measures that could be implemented.

Fleet Risk Management*

Vehicle accidents are the greatest source of loss for many organizations. Implementing fleet loss prevention methods may result in:

• fewer losses
• less severe or costly losses
• lower insurance premiums in the long run.

Whether you own the vehicles your employees or volunteers use or they use their own vehicles, there are risks that you need to consider and manage.

Legal Liability

Vicarious Liability:

Key Point Preventative maintenance is an essential part of an effective fleet risk management program.

An employer is generally responsible for the negligence of its employees/volunteers while they are operating vehicles or equipment within the scope of their employment.

Never Admit Liability:

It is very important to instruct your drivers never to admit liability after an accident, because it may cause unnecessary disputes and may create uncertainty about liability.

Compliance:

There are many regulations and other legislation that must be complied with when dealing with motor vehicles.

• The Motor Vehicle Safety Act sets out standards and inspection requirements for all vehicles and equipment in Canada.
• The National Safety Code (NSC) for motor carriers is mandatory for trucks, tractors and trailers with a registered gross vehicle weight greater that 4,500 kg (10,000 lbs).

Other provincial/territorial regulations and legislation must also be complied with (

Risk Management

1. Determine the extent of fleet loss exposures (types, causes, sources, number and cost of potential accidents):

• Use the risk management process to identify and determine the frequency and severity of fleet risks.
• Benchmark – compare losses to others in the industry.

2. Implement a preventative maintenance (PM) program that includes a regular inspection and maintenance schedule. Vehicle-operating manuals will often suggest a maintenance routine. Documentation is key.

3. Create fleet policies and procedures that could include:

• A Motor Vehicle Safety Policy that would establish the organization’s philosophy of safety and the way it expects drivers to perform. (Click here for a sample.)
• A Vehicle Selection and Acquisition Policy that would establish the minimum safety requirements for new vehicle purchases.
• A Preventative Maintenance (PM) Policy.
• A policy for the disposal of vehicles to ensure that ownership is entirely transferred.
• A driver screening and hiring policy to establish minimum requirements of drivers (e.g., number of years experience, maximum number of traffic violations, etc.).
• A list of unauthorized uses including driving while impaired (drugs, alcohol, prescription medications, health impairments, fatigue, etc.), personal use, driving outside given geographical areas, etc.
• Maximum allowable speeds.
• Safe following distances.
• Directions for proper fuel storage and disposal.
• A policy on night-driving that addresses issues of stimulant and headlight use.
• Procedures around parking and reversing.

4. Create a fleet safety manual for drivers. Each driver should have access to a copy. If each driver has read and has access to the policies and procedures, there is no excuse not to abide by them.

• Include all company policies and procedures related to driving.
• Create a pocket manual with key points, for quick and frequent reference.

5. Communicate any policy/procedure changes to all drivers. Have them sign to acknowledge that they understand the new policy/procedure and will abide by it.

6. Encourage drivers to give feedback and suggestions about how to improve fleet safety.

7. Ensure drivers receive regular training. Provide refresher courses.

8. Ensure vehicles are stored in a safe place after hours to prevent theft.

• Install vehicle alarm systems.
• Lock the doors.
• Do not leave valuables in plain view.
• Ensure that indoor storage of vehicles is safe and that safeguards such as exhaust fans, fire suppression systems, fire alarms, etc. are in place. Give consideration to the potential risk of losing several or all vehicles in one incident and how that risk might be mitigated, for example, by separating the vehicles or using different buildings/locations.

9. Reward and publicize safe driving.

10. Ensure drivers know the procedure to follow in the case of an incident/accident.

• Provide them with a first-aid kit.
• Provide them with a safety kit, which should include a shovel, tow rope, booster cables, tool kit, fuel line antifreeze, flashlight, blankets, candles and matches.
• Make sure they know their supervisor’s phone number and the phone number for emergency services.

Directors' and Officers' Liability*

Directors and officers have a duty to exercise due diligence in overseeing the activities of the organization that they serve. They are required to act in good faith and in the best interest of the organization. Directors have three basic duties:

1. Duty of Diligence (Duty of Care): Act reasonably, in good faith, in the organization’s best interest.

2. Duty of Loyalty: Place the interest of the organization
before your own.

Key Point Directors and officers have very specific duties and obligations that must be known and practiced by all directors and officers.

3. Duty of Obedience: Act within the scope of the organization, within applicable rules and laws.

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Legal Liability

Directors may be liable for:

• Failure to act as stated under a statute. For example, if a statute requires directors to file a report or maintain certain records, and these reports and records are not maintained, then the director may be liable for an offence under that statute.
• Non-compliance of the organization with a statute. For example, directors may be liable for mismanagement, financial losses, wrongful dismissal, employee discrimination or failure to remediate environmental damage.

It is also important to note that:

• Directors can be held personally liable.
• Ignorance is not a defense.
• Resignation is not necessarily a defense.
• Board indemnity may not be enough.
• Directors may be liable for nonperformance.

Consult a lawyer for more information on directors’ and officers’ legal liability. For a comprehensive review of legal liability for directors and officers of not-for-profits, visit Industry Canada’s “Primer for directors of not-for-profit corporations” at http://strategis.ic.gc.ca/epic/internet/incilp-pdci.nsf/en/cl00689e.html

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Risk Management

1. Provide awareness training in negligence and liability to all directors and officers.

2. Ensure directors are aware of:

Key Point Directors and officers should be given all the appropriate information that they require to perform their duties effectively.

• risks associated with being a director of the organization;
• statutory and civil liabilities;
• specific directors’ obligations;
• other rules associated with the organization’s business for which directors may be liable due to acts or omissions of the organization; and
• other responsibilities (including understanding finances and knowing the organization and its charter).

3. Ensure there is no conflict between the duty owed to the organization and the director’s self-interest.

• Avoid outside employment/business that may interfere with or influence the organization’s duties.
• Handle confidential and sensitive information carefully (prevent release of information).
• Follow guidelines on the appropriateness of public statements (i.e., what and when information can be released).
• Do not accept gifts, favours or services relating to company duties.
  

4. Ensure directors are aware of the organization’s operations and affairs. Maintain formalized operating policies and procedures for all activities within the organization’s control.

a. Implement a financial management policy. Establish clear financial reporting guidelines.

b. Store confidential materials and sensitive information in a proper place.

• Determine who has access.
• Encrypt all electronic confidential materials.
• Ensure only those with passwords have access. The system should require that passwords be changed frequently.
• Implement firewalls to prevent hackers from accessing information

c. Create a human resources policy.

• Prepare formal job descriptions for all employees and document the experience and training required for those positions.
• Document specific aspects of unacceptable employee performance and advise employees of it well before termination

5. Ensure all employees, visitors, customers, clients and other stakeholders are protected from harm.

6. Establish a formal information reporting system. Generally, a director is entitled to rely on information provided by officers or employees/volunteers of the organization, unless the director knows that relying on the officer/employee/volunteer is unadvisable.

7. Speak up. Directors should have a clear understanding of all the activities in the organization and should question anything that is unclear. Directors should also clearly communicate their decisions.

8. Document decisions and how they were made.

9. Work closely with legal representatives in making decisions. If the director has provided full disclosure to counsel, requested counsel’s advice as to the legality of the proposed action, received advice that the action would be lawful and proceeded in reliance on the advice, this may demonstrate that the director acted with due care.

10. Implement a “whistle blower” policy that is communicated to staff and volunteers, and that lets people know that they can contact a specific board member or representative to advise of any situation of which they feel the board should be aware.

11. Implement a director’s indemnification policy that clearly states the rights and obligations of directors and what protection is provided to them by the organization.