· Check whether the Insurance policies taken by the company cover the following assets at all the locations (factories, offices, branches etc).
o Plant & Machinery, Furniture / Fixtures, Electrical installation, Office equipments etc
o Buildings / Warehouses etc.
o Inventories / Stocks in transit
o Any other.
· Ensure that the value of Assets insured is adequate.
· Ensure that all the risks are covered in the policy.
· Check whether the loss of profits policy has been taken by the company.
· Ensure that the additions / deletions to the fixed assets during a particular accounting year are fully taken care of in the policy.
· Check whether the insurance premium amount has been properly negotiated. Ensure that competitive rates of 2-3 insurance companies were taken into consideration while finalizing the premium payable. For this purpose all necessary precautions should be taken to reduce the level of premium.
· Obtain a list of all the insurance claims pending for settlement as on a particular date and comment upon the old pending cases.
· Obtain a list / statement of all the Insurance policies and ensure that all the assets of the company are fully insured.
· Ensure that the value of assets / fixed assets declared by the company is proper and that the assets are not under covered.
· Ensure that maximum discounts / rebates were availed by the company at the time of finalizing the insurance policies / premium.
· Check whether insurance policies in respect of group Gratuity / Medical / Superannuation / accident etc. are obtained at the best rates. Comparative statements / comparative data should be checked.
· Ensure that the Insurance policies are renewed in time i.e. before the expiry of the period of validity.
· Check the list of fixed assets / assets filed with the insurance company to ensure that all the Fixed assets / assets are covered by the insurance policies.
· Ensure that all the policies are obtained for the uniform period matching with the accounting year of the company.
· Check whether the terms and conditions given in the insurance policy are complied with by the company.