INSURANCE 

·         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   Cash

o   Vehicles

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.