amit risk management

8/10/2019 AMIT Risk Management

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2014

Role of Insurance as aMajor Tool for Risk

Management=========================

An internship report submitted

BYAMIT PAWAN KUJUR

13MBA005

MBA

(FINANCE & MRKT)

Under the Guidance of


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Faculty Guide: Industry

Guide:

Mr. A. K. Rai Mr. B. Mukhopadhyay

PREFACE

The project has bee doe o !AI"# Bokaro !tee$ %$at. !AI" s a

cu$ture'..a or$d'.s a burst poteta$# tras*or+ ree *e$d ste

to bass o* a**$uece# t has chaed the ,ery *ace o* Ida. Ths project

$$ pro,de the basc ko$ede about the Ro$$ o* Isurace Rsk

Maae+et *o$$oed Bokaro !tee$ %$at.

The project report co,ers the ,arous act,tes per*or+ed Face ad

Accouts depart+et. It s acco+paed th the u+ber o* *or+ats #

charts ad *$o dara+s hch $$ be he$p*u$ uderstad the

subject +atter.


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ACKNOWLEDGEEN!

I a+ deep$y debted to +y project ude Mr. A. K. Ra

!r.Maaer (F&A-Is & C$a+s) *or hs ,a$uab$e ad e$hteed

udace as e$$ as *reedo+ he has redered +e dur ths project.

I epress +y rattude to Mrs. !hy$eja Ayear *or pro,d +e ,a$uab$e

*or+ato reard ro$e o* surace rsk +aae+et.

%$ace/ Bokaro !tee$ Cty AMIT PAWAN KUJUR


4/60

Tab$e o* Cotets

!"b#e No !it#e o$ the !"b#e P"%e No0.0 Basc Theoretca$ cocept &Cotet o* the Topc 1

0.1 Need *or the study 2

0.2 !tate+et o* the %rob$e+ 2

0.3 4bject,e o* the %roject 3

0.5 !cope o* the !tudy 3

1.0 Curret status o* the co+pay 4 to 10

1.1 Future %$as o* the 4ra6ato 10

1.2 Ay other re$e,at I*or+ato 11 to 19

2.0 !a+p$ 7es 20

2.1 !ource ad +ethods o* data co$$ecto 20

2.2 Methods o* data aa$yss ad statstca$ Tech8ues 20

2.3 "+tato o* the study 20

2.5 4,er,e o* rsk +aae+et 21 to 25

3.0 %rocess o* rsk +aae+et B!" 26 to 30

3.1 7ata aa$yss 31 to 36

3.2 Iterpretato# 7scussos & Fds 37

5.0 "st ad ep$aato o* +ajor po$ces 38 to 44

5.1 Codto uder +e+oradu+ o* uderstad 45 to 46

5.2 C$a+s pro,so 47 to 50

5.3 4bser,ato 51 to 52

5.5 %o$cy suesto ad coc$uso 53

5.9 Re*erece 54


5/60

E&EC'!()E *'AR+

!tee$ Authorty o* Ida "+ted (!AI") s the $ead stee$: +ak

co+pay Ida. It s a *u$$y terated Iro ad !tee$ +aker# produc

both basc ad speca$ stee$s *or both do+estc costructo# eeer

poer# ra$ay# auto+ot,e ad de*ese dustres ad *or sa$e

teratoa$ +arkets.

Bokaro !tee$ %$at s the *ourth Iterated %$at o*

!AI" %ub$c !ector tak shape 0;95 co$$aborato th !4auary 0;93# ad as $ater +ered th !AI"# *rst as subsdary ad

the as a ut# as per the %ub$c !ector Iro & !tee$ Co+paes

,Restru-turin% . is-e##"neousPro/isions A-t 13. It s desed to

produce F$at products $ke ?ot Ro$$ed co$s-sheets-p$ates# Co$d Ro$$ed

Co$s-sheets-%$ates# T M$$ B$ack %$ates ad @a$,a6ed# p$a ad

corruated sheets ad a$so pro,des ra +atera$ *or Auto+ob$e# %pe

Tube# "%@ cy$der Barre$ ad 7ru+ to produc dustres.


6/60

115"si-!heoreti-"# Con-epts "nd Conte6ts o$ the !opi-s

Each hu+a be *aces so+e rsk hs $*e ad the +ost +portat rsk s hs $*e s

death. But *or a ora6ato# the rsk s ,o$,ed rht *ro+ procure+et o* ra+atera$ to the de$,ery o* *shed oods. !o e eed to ko ho to +aae rsk

a ora6ato. Rsk Maae+et s the co+bato o* to ords Rsk ad

Maae+et.

The ter+ ris7+ay be de*ed as the possb$ty o* ad,erse resu$ts

*$o *ro+ ay occurrece hch are ucerta ature. Thus rsk s a stuato

he possb$tes ca be assed to a e,et o the bass o* *acts ad *ures

a,a$ab$e reard the decso.

The ter+ m"n"%ement+ay be de*ed as ett ork doe throuhothers or +aa the ork the best possb$e +aer.

Thus the rsk +aae+et ca+e to the pcture. It +ay be de*ed

as the identi$i-"tion8 "n"#9sis "nd e-onomi- -ontro# o$ those ris7s :hi-h -"n

thre"ten the e$$e-ts o$ e"rnin% -"p"-it9 o$ "n enterprise;

As %eter Berste rote#


7/60

N"ture o$ Ris7

Rsk +aae+et s a scet*c approach to the prob$e+ o* dea$ th the pure

rsk *aced by the d,dua$s ad busess. It s a *ucto o* +aae+et. It dea$s th surab$e & usurab$e rsks ad the choce o* approprate

tech8ues *or dea$ th the+.

Rsk +aae+et s cocered th a$$ pure rsks# reard$ess o* hether they are

surab$e or ot.

The e+phass rsk +aae+et s o reduc the cost o* had$ rsk.

12 Need $or the *tud9

E,ery job ,o$,es certa a+out o* rsks

To aa$y6e the est cost o* rsk +aae+et o* Bokaro !tee$ "+ted.

The study s based o the ude$es# ru$e ad reu$atos o* the Isurace Act

co,ered by the ,arous surace co+paes

1> *t"tement o$ the Prob#em

Need$ess to +eto here that as the t+e passes# the s6e as e$$ as the ,arety o* the

ora6atoa$ eeds creases. But at the sa+e t+e a$$ o,er the or$d the

e,ro+eta$# $abor co+pesatos# ha6ards ad dsasters has a$so beco+e stret#

.e. the burde o* +aa the rsk has a$so beco+e the +ajor task o* the

ora6atos.

The rsk# tera$ as e$$ as etera$ s a$so eeded to be take to accout *or e,ery

ora6ato structure. 7ue to the ro dustra$6ato# the rsk o* ay happe

or +ss:happe has a$so chaed *ro+ tradtoa$ to o:tradtoa$ *or+. Theoccurrece o* accdets-rsks has beco+e hh th the rapd dustra$6ato ad

+oder6ato. The area hch eeds a re:$ook or depedet study o* rsk:

+aae+et *or a +ea dustry $ke Bokaro !tee$ %$at

= 2 =


8/60

14 Ob?e-ti/e o$ the Pro?e-t

!he m"in ob?e-ti/es o$ the stud9 "re@

0. To study the prob$e+s +aa rsks

1. To *oresee the chace o* occurrece o* ay rsk $ke *re# the*t $oss o* data#

e$ectrca$ e8up+et *a$ure# $oss o* pro*t due to +ache breakdo# pub$c

$ab$ty ad $ea$ $ab$ty

2. To study the $oss hch has su**ered so *ar ad the probab$e $oss# hch has ot

occurred the p$at

3. To aa$y6e the pub$c $ab$ty rsk case o* accdet th the ha6ardous

as-+atera$s

5. To ,e reco++edatos hch ou$d he$p the ora6ato cotro$$ -

++6 the rsks by d**eret +ethods

1 *-ope o$ the stud9

0. The study s re$ated to the rsks ad the surace patter o* the !AI"-Bokaro

!tee$ %$at.

1. The prob$e+ assocated th +aa rsks o* the stee$ p$at.

2. The stratees app$ed by the !AI" to reduce accdets ad ther rsk shar

patter.

3. The pre,et,e +easures ad the rsk shar & rsk absorpto capacty o*

!tee$ %$at

5. To aa$y6e the est cost o* rsk +aae+et o* Bokaro !tee$ "+ted.

= > =


9/60

(ndustr9 Pro$i#e ,Ori%in o$ !he (ndustr93

1. *tee# -omprises o$ the most import"nt inputs in "## se-tors o$ e-onom9

!tee$ sector s both a b"si- ad -ore dustry.2. The economy of any nation depends on a base of Iron and Steel Industry in

that nation.

3. The hstory o* Iro ad !tee$ dustry Ida s ear$y 3yrs o$d.

. The *rst stee$ p$at as set up Iro ork Co+pay at Kutt 0D.

!. L"ter the $"ther o$ the modern stee# industr9 *ir B"mshed?i !"t" set

up the !"t" (ron *tee# Comp"n9 ,!(*CO3 in 10

". The *rst stee$ ots ere ro$$ed TI!C4 0;00. Ths as *o$$oed by

the estab$shed o* the Mysore Iro & !tee$ orks 0;29# $ater rea+ed

as )is/es:"r"9" (ron "nd *tee# Wor7s

#. I 0;2; ((*CO ,ren"med "s (*P3o a subsdary o* stee$ Authorty o*

Ida $+ted.

$. It s used s+a$$ te+s such as a$s# ps# eed$es# arcu$tura$

+p$e+ets ad hea,y te+s $ke bo$ers# shps# *abrcato# ra$ay#

auto+ob$e parts ad hea,y +aches# structures etc.

%. The versatility of the steelca be traced to +a$y three reasos.

a) It s the o$y +atera$ te+# hch ca be co,eet$y ad

ecoo+ca$$y produced# $are 8uatty .e. ter+s o* toes.

b) It has ot a ,ery ood streth coup$ed th duct$ty ad +e$t

ab$ty.

c) Its property ca be chaed o,er a ,ery de rae. Its propertes

ca be +apu$ated to ay etet by proper heat treat+et

tech8ues.

= 4 =


10/60

Gro:th . De/e#opment o$ *tee# (ndustr9 in (ndi"!he %ro:th in " -hrono#o%i-"# order is depi-ted be#o:.

1>0 = Bosni" "rsh"## e"#tin -"rno ca be cosdered as the poeer o* +oder

stee$ dustry Ida. ?e costructed the *rst +au*actur p$at at poto novo Madras presdecy. But there as the *aca$ *a$ure ad the Idustry as shut do.

14 = B"mes Eris7in *ouded the Bea$ ro orks. It passed o to M-! ?oe

?$$er ad Co+pay# 0D91 ad M-s Mart ad co+pay 0DD5

1 = B"mshed?i !"t" tated the sche+e *or a$$ terated stee$ p$at (the *rst

the coutry).

10 = *"7-hi >?ARK?AN7 as chose as the ste *or the !"t" (ron "nd *tee#

Comp"n9 ,!(*CO3 The sa+e p$ace s o ko asB"mshedpur

111 = !(*CO started producto ta$$y : 0 toes o* Iots-year ad to

years t reached 5 toes -year. By 0;2;# t reached a producto o* 05 toes

Iot stee$ per year.

11 = Ita$$y (ndi"n (ron "nd *tee# Comp"n9 ,((*CO3 as *ouded ad the

Bea$ Iro ad !tee$ Co+pay +ered th t 0;19. To start th# II!C4 restered

tse$* *or +au*actur o* p Iro ad eported t to =K ad >apa. "ater 0;2; t

started the producto o* stee$.

140 = 10 Foudato o* Mysore Iro ad !tee$ "+ted# preset$y ko as


11/60

0. Iro 4re 3. !poe !tee$

1. % Iro 5. "o !tee$

2. F$at !tee$ 9. A$$oy !tee$

1 (ndi" is th #"r%est stee# produ-in% n"tion in the :or#d :ith -rude stee#

produ-tion o$ 44 mi##ion tonne in 200

2 Apparet cosu+pto o* *shed stee$ F : appro. 33 +$$o toe#

roth o* 00G o,er F 9

> Fshed stee$ eports 19:/ appro. 3.5 +$$o toe

4 I+ports at 3.0 +$$o toe F catch up *ast th eports due to

buoyat do+estc de+ad

(n 2008 (ndi" emer%ed "s the se-ond #"r%est stee# produ-er in terms o$ %ro:th

r"te in Asi" "$ter Chin". A$so# the coutry re+aed the se,eth $arest producer o*

crude stee$ that year. IdaHs per capta stee$ cosu+pto s $o at 2 k co+pared to

$oba$ stadards *or de,e$oped coutres at 3 to 5 k

= =


12/60

(ND(AN *!EEL (ND'*!R+

* tee# Authorit9 o$ (ndi" Limited ,*A(L3

*A(Ls the $ead stee$:+ak co+pay Ida. It s a *u$$y integrated iron and

steel maker, producing both basic and special steels*or do+estc costructo#

eeer# poer# ra$ay# auto+ot,e ad de*ese dustres ad *or sa$e eport

+arkets.!he %o/t o$ (ndi" o:ns "round o$ the -omp"n9

R"n7ed "mon%st the top ten pub#i- se-tor -omp"nies in (ndi" in

terms o$ turno/er8!AI" +au*actures ad se$$s a broad rae o* stee$

products# c$ud hot ad co$d ro$$ed sheets ad co$s# a$,a6ed

sheets# e$ectrca$ sheets# structura$# ra$ay products# p$ates# bars adrods# sta$ess stee$ ad other a$$oy stee$s

!AI" produces ro ad stee$ at *,e terated p$ats ad three speca$

stee$ p$ats# $ocated prcpa$$y the easter ad cetra$ reos o*

Ida

The co+pay has the dstcto o* be IdaHs $arest producer o*

ro ore ad o* ha, the -ountr9s se-ond #"r%est mines net:or7.

Its *,e stee$ p$ats at Bh$a# 7urapur# Rourke$a# bokaro ad burpur

ha,e a tota$ capacty o* produc o,er 01 +$$os toes o* crude stee$.

!a$ s IdaHs $arest & oe o* the or$dHs $arest stee$ producers th aturo,er o* aroud Rs 0D#-rore.

!AI"Hs R": "teri"#s Di/isionshead8uarters s "t Ko#7"t"

= =


13/60

ABOR 'N(!* 'NDER *A(L

*A(L units re-ord output

The Ra Matera$s 7,so (RM7) o* !tee$ Authorty o* Ida "td (!AI") has

ache,ed record producto 1:D. RM7 eded the *sca$ 1:D th ro ore

= =

!AI"

(nte%r"ted

*tee# P#"nt

*pe-i"# *tee# P#"nt *ubsidi"ries Other unit

Bokaro

!tee$

%$at

0;93

Rourke$a

!tee$

%$at

0;52

7urapur

!tee$

%$at

0;59

Bh$a

!tee$

%$at

0;59

A$$oy !tee$ %$atB

!a$e+ !tee$ %$atC?ENNAI

?ARK?AN7

Research 7e,e$op+et

Cetre *or Iro & !tee$#>?ARK?AN7

!a$ Cosu$tacy7,so# 7E"?I

Maae+et

TraIsttute#

RANC?I

Cetre *or

Eeer &

Techo$oy

Cetra$

%oer

TraIsttute

!AI"

!a*ety

4rasat

E,ro+

Maae+

Tra#K4"KATA

@ro

7,sK4"K


14/60

producto o* 0D +$$o toes. Ths as a in-re"se o$ 0 per -ento,er ro ore

produced 19:. Accord to a press re$ease ssued here by !AI"Hs RM7# ro

ore dspatch 1:D stood at 12 mi##ion tones8 " %ro:th o$ 41 per -ento,er

the pre,ous year. RM7 +es at Gu"8 5o#"ni8 e%h"h"tuburu "nd Kiriburu

"-hie/ed best=e/er produ-tion in 200=08 re-ordin% " %ro:th o$ 1 per -ent8 per -ent8 4> per -ent "nd 42 per -ent8 respe-ti/e#98 o,er the pre,ous year.

%roducto at ro ore +es at Barsua ad Maoharpur re by 21 per cet ad 2.

per cet# respect,e$y# o,er $ast year.S*I+s -& has targetediron ore production of

2 million tons by 2/1/)11

O:nership "nd "n"%ement

The @o,er+et o* Ida os about o$ *A(LHs eIuit9ad retas ,ot cotro$

o* the Co+pay. ?oe,er# !AI"# by ,rtue o* ts MaharataH status# ejoys s*catoperatoa$ ad *aca$ autoo+y.

59=Produ-ts ,Co"# Chemi-"#s3

5enJ9# Produ-ts

5enJene8 !ou#ene8 &9#ene@ !o$,et 4$# !t$$ Botto+ 4$

*o#/ent N"phth"@ %o$y+ers# ?ea,y Be6o$.

!"r Produ-ts

Co"# !"r Pit-h@ 7e pea$6ed Tar 4$

Crude Anthr"-ene@ Athracee o$# Coa$ Tar

ot Pressed N"phth"#ene@ ?ea,y o$# carbo$c o$# "ht o$

Ferti#iJers . Chemi-"#s

C"#-ium Ammonium Nitr"te@ *ONA

Ammonium *u#ph"te@ RABA

= =


15/60

21Current st"tus o$ the -omp"n9

22 Future P#"n o$ the Or%"niJ"tion

Other (n$orm"tion

= 10 =


16/60

5OKARO *!EEL PLAN!:* 0*-- I *I4 56I+&I7

Bokaro !tee$ %$at : the $ourth inte%r"ted p#"nt the %ub$c !ector : started

tak shape 0;95 co$$aborato th the !o,et =o.

It as ora$$y corporated as a $+ted co+pay o 2%th 8anuary 1%", and

(as later merged (ith S*I+,*rst as a subsdary ad the as a ut# throuh the %ub$c

!ector Iro & !tee$ Co+paes (Restructur & Msce$$aeous %ro,sos) Act 0;D.

he construction (ork started on "th *pril 1%"$.

CoutryHs First *:"deshi P#"nt ,bu$t th +a+u+ deous cotet

ter+s o* e8up+et# +atera$ ad ko:ho).

Frst B$ast Furace started o 1d 4ctober 0;1. Bokaro s produc top 8ua$ty hot ro$$ed products that are e$$ accepted the

$oba$ +arket.

5o7"ro *tee# is :or7in% to:"rds be-omin% " one=stop=shop $or :or#d=-#"ss

$#"t stee# in (ndi".

The +oder6ato p$as are a+ed at in-re"sin% the #iIuid stee# produ-tion

-"p"-it98coup$ed th *resh ro$$ ad coat *ac$tes.

Bokaro s desed to produce *$at products $ke ?ot Ro$$ed Co$s# ?ot

Ro$$ed %$ates# ?ot Ro$$ed !heets# Co$d Ro$$ed Co$s# Co$d Ro$$ed

!heets# T M$$ B$ack %$ates (TMB%) ad @a$,a6ed %$a ad

Corruated (@%-@C) !heets

Bokaro has pro,ded a stro ra +atera$ base *or a ,arety o* +oder

eeer dustres c$ud auto+ob$e# ppe ad tube# "%@

cy$der# barre$ ad dru+ produc dustres.

Lo-"tion

= 11 =


17/60

Bokaro !tee$ %$at s $ocated the dstrct o* Bokaro the >harkhad !tate. B!" s

a terated !tee$ %$at produc *$at products ad s a ut o* !tee$ Authorty o*

Ida "+ted# the ape body +aa +$d ad a$$oy ad speca$ stee$ p$ats the

%ub$c !ector Ida.Bokaro has a s+a$$ r,er# hch *$os to the Koar J a trbutary o* 7a+odar. Bokaro

Ther+a$ %oer !tato o* the 7a+odar


18/60

+eet roud ad ad+stered th acu+e ad pro+pttude ad abo,e a$$ th

hu+a cocer. !he $irst Ch"irm"n :"s r N W"n-hoo "nd tod"9 the -ourse

o$ *A(L is bein% -h"rtered under the $"rsi%hted ste:"rdship o$ r )*B"in The

*rst Maa 7rector o* B!" as Mr. K.M.@ore# 0;93 ad at preset# the post s

be he$d by Mr. =.%.!h# ho has th h+ $o years o* techca$ epertse o*!AI" uts.

A!ER(AL ANAGEEN!

he steel plant and the to(nship (ith hospital and schools re9uire huge 9uantity of

machinery, e9uipment, cement, ra( materials, stores and spares, medicines and

stationary items.The t+e$y a,a$ab$ty o* 8ua$ty +atera$s at co+pett,e prce s a

,ta$ cosderato the Matera$s 7,so co+prs o* %urchase# !tores# Ispecto

& %roress# Market depart+et o* Matera$ 7,so dea$s th sa$e o* secodaryproducts.

PER*ONNEL . AD(N(*!RA!(ONThe ro$e o* %ersoe$ ad Ad+strato depart+et s de$cate ad cruca$ ad ts de*t

had$ o* stuato depeds o s+ooth sa$ the area o* orks# o:orks ad

toshp. The ro$e s co+pouded by the *act that the depart+et has to coted th

the prob$e+s o* orkers hose %reset streth s appro+ate$y 29#. ?oe,er#

dos6 s o o by the ays o* ,o$utary retre+et the preset ae o* cut:throat co+petto.

Idustra$ Re$ato !ecto s ,ery e**ect,e +ata har+oy th trade uos

ad tack$ ,arous prob$e+s re$ated to t.

PROBEC! D()(*ON

The ersth$e costructo depart+et has e,o$,ed to the %roject 7,so. Its

+portat sectos are 7es Bureau# Teder & C$a+ ad E8up+et %$a etc.

O!ER DEPAR!EN!*

= 1> =


19/60

4ther depart+ets are CI!F *or securty# %ub$c Re$ato# Idustra$ Eeer#

4ra6ato ad Method# ?R7# Ite$$ece#


20/60

It basca$$y dea$s th pay+et ad accout o* a$$ oods aast hose purchase

order has bee p$aced. Its ork starts he oods are rece,ed ad ,er*ed th @RN

(oods rece,ed otes). They

Rece,e the b$$


21/60

Code=0 @ *tores A--ount

It dea$s th the accout ad +ateace o* stores $eder# recepts# ba$ace o*

,etores etc... !tores depart+et has the custody o* aroud 1 $akhs te+s. The

docu+ets rased by the !tores depart+et are/

0. Issue otes1. Matera$ Retur Note

2. 7spatch Note

3. @oods Recept Note

5. !tock Tras*er


22/60

It s the statutory re8ure+et to et the surace o* +aches# e8up+ets# ad

,ehc$es. Isurace $ke *re ad +are s dea$t by ths secto. For e.. t dea$s th

the ho$e procedure he ay *re take p$ace# t$$ the date o hch t rece,e the

c$a+s. It dea$s th the $od+et# sett$e+et ad accout o* c$a+s.

Code=1> @ *"#es !"6

It dea$s th the accout o* !a$es Ta +atters.

Code=14 @ Oper"tion"# P"9ment

It dea$s th the pay+et toards cotractua$ epedture *or +ateace ad other

operatoa$ jobs ad accout thereo*. The +a *ucto s process ad pass

the b$$ *or cotractua$ pay+et o*/

() Repar# +ateace# c$ea ad +atera$ had$.() Te$ephoe b$$s# ater b$$s# Toshp +aa b$$s & +sce$$aeous pay+ets.

Code=1 @ *"#es A--ount

It dea$s th the preparato o* ,oce ad accout thereo*.

Code=1 @ Cost "nd 5ud%et

It dea$s th stadard cost ad preparato o* cost sheet# hch *urther aa$y6ed

by Cost Cotro$ depart+et. There are cost ceters. Budet s doe *or sa$eab$e

products the +arket# +port o* te+s ad projectos o* pro*t eeratos. Budet sprepared o +oth$y# 8uarter$y# ad o aua$ bass a$so. They dea$ th da$y

pro*tab$ty Budet s re,sed +oth$y ad ,arace aa$yss s reported. They a$so

prepare MI! reports. They +ake ,a$uato o* *shed-se+:*shed stock o* p$at.

Actua$$y ths secto decdes the rate o* each output.

Code=1 @ R": "teri"#

It dea$s th the ,a$uato o* recept o* ra +atera$s c$ud Ferro ad o:Ferro

te+s. It a$so dea$s th the ,a$uato o* ra +atera$s as e$$ as pay+ets o* b$$s

re$ated to ra +atera$.

Code=1 @ E6-ise A--ount

It dea$s th the accout o* ecse +atters $ke pay+et o* ecse duty# CEN


23/60

It dea$s th pay+et ad accout o* projects ad p$ats updato that c$ude CC7#

Reheat Furace# ad ?ot !trp M$$. The object,e o* Moder6ato Face

corporates a crease $8ud stee$ producto# a crease s$ab producto#

reducto eery cosu+pto# ad a crease $abor product,ty ad a

+pro,e+et the ye$d o* $8ud stee$ to sa$eab$e stee$.

Code=20 @ Pub#i- Deposit *-hemes se-tion

It dea$s th the deposts rased *ro+ the pub$c ad repay+et# reea$ o* prcpa$

ad terest o +aturty. There are to sche+es J *ed depost ad cu+u$at,e depost

sche+e. The depost raes *ro+ 0 to 2 years.

Produ-tion Pro-essBe*ore tak the Rsk part to cosderato# t s ,ery esseta$ to ko the

producto process o* Bokaro !tee$ %$at. The producto process s ,ery ,ast. It co,ersa u+ber o* act,tes to be *o$$oed s+u$taeous$y each secto.

"ets ha,e a $ook deta$s The eery ut$6ed *or +ak stee$ s

ot take *ro+ e$ectrcty as a ho$e# as t s ,ery cost$y. Major part o* t s take the

*or+ o* coke. Coke s the +ajor output produced coke o,e. No ths +ajor output

beco+es the put o* B$ast *urace# hch t s +ed th the ro ore# $+estoe#

ad do$o+te to +ake ro ore or e ca$$ t hot +eta$. e use t to *or+s@=

(ron Ore Lump

(ron Ore Fines

The Iro 4re "u+p s used as t s but the Iro 4re Fes s take to the ster p$at

ad +ed th scrap ad do$o+te. A$$ these are processed ad the product produced

s ca$$ed ster. Ths !ter s take to the B$ast *urace a$o th Iro ore $u+p#

$+estoe# ad do$o+te ad hat s produced s hot +eta$. No ths hot +eta$ s take

to the !tee$ Me$t !hop (!M!). B!" has to !tee$ Me$t !hops o,er here@=

*tee# e#tin% *hop (

*tee# e#tin% *hop ((

The capacty o* !M! I s 0.5 MT ad that o* other s 1.5 MT. The stee$ +e$t shops

processes the hot +eta$ to stee$.

= 1 =


24/60

No the !M! I produces ot ad the the Iot s processed to s$ab the !$abb

+$$. !M! II s +oder6ed here strahtaay s$ab s be produced throuh the

Cotuous Cast 7epart+et (CC7).

!$ab s +a$y be +ade to *or+s@=

,i3 ot *trip i##,ii3 Co#d Ro##in% i##

,iii3 G"#/"niJin% Line

The s$ab s aa reheated the ?ot !trp M$$ ad ?ot Ro$$ Co$ (?R Co$) s

be +ade. 5 G o* the ?R Co$ s be so$d ths *or+ ad the rest s aa d,ded

to to@=

R Coi# Finishin%

Co#d Ro##in% i## ,CR 3

?R p$ate ad ?R sheets are be produced ad so$d the ?R co$ *sh.CR !heet CR Co$ are be produced ad so$d CRM. !o+e %art o* CR sheet s

take to @a$,a6 "e here Lc coat s doe ad @a$,a6 %$ate sheet

ad @a$,a6 Corruated !heets are produced ad so$d ths *or+.

!hus8 this is the m"?or produ-tion pro-ess o$ 5o7"ro *tee# P#"nt

= 1 =


25/60

>1 Rese"r-h "n"#9sis . desi%n

-esearch ethodology

Research Methodo$oy dea$s th the procedure adopted to carry out the study.

Accord to 7reen and ull/ 4 Limit"tion o$ the stud90)Access to the *or+ato s $+ted.

1) The study s co*ed o$y to !AI"-Bokaro !tee$ %$at.2) The sa+p$e s6e +ay ot be true represetat,e o* the popu$ato uder study.

3) T+e costra *or the o**ca$s.

= 20 =


26/60

Ris7 "n"%ement@ An o/er/ie:

Gettin% Re"d9 to t"7e on ris7s

:he need to add a ne( dimension to risk management practices, hedgingfrom disasters ) is becoming imperative

The *eptember 11th"tt"-7 ,in 20013jo$ted *ace pro*essoa$ *ro+ ther

co+p$acecy# as +ay o* the+ ere uprepared to dea$ th a dsaster o* such

+atude. !e,era$ co+paes ha,e su**ered hue $osses ther ork*orce ad o**ces

ha,e bee per+aet$y da+aed. The cdet# hoe,er# has pro+pted a parad+

sh*t rsk percepto. Rsks assu+ptos ha,e bee e$ared to c$ude *actors

ra *ro+ basc trasportato to ,etory po$cy.Ford8*or stace# had to c$ose do ts asse+b$y because o* dsrupto the supp$y

o* parts# a cose8uece o* the attack. Face pro*essoa$s ha,e rea$6ed the rsk

,o$,ed at ,arous $e,e$s ad eed to ha,e a$terat,es p$ace.

As %eter Berste rote#


27/60

7ue to the rapd e,ro+eta$ chaes ad co+p$etes o* the bakHs ba$ace

sheet# the rsks that the baks are eposed to are ot o$y co+p$e ature# but ,ared

d+eso as e$$.

As t+e passes there s +ore ad +ore co+petto the bak dustry ad a$$

the baks are epected to *u$*$$ the eeds o* ts custo+ers as e$$ as that o* tsshareho$ders.

=der such a stuato the baks +ust *u$$y uderstad the rsk that s eposed to

ad ho to ba$ace the sa+e th returs to keep e,eryoe happy.

!he de%ree o$ ris7 m"9 or m"9 not be me"sur"b#e . !ce our purpose s to re$ate rsk

to surace# *ocus $$ be o a rsk hch eta$s the possb$ty o* *aca$ $oss.

Fin"n-i"# #oss m"9 be de$ined "s " de-#ine in or dis"ppe"r"n-e o$ /"#ue due to "

-ontin%en-9

C#"ssi$i-"tions o$ Ris7s

Fin"n-i"# "nd Non=$in"n-i"# ris7s

There s so+e e$e+et o* rsk e,ery aspect o* hu+a edea,or# ad +ay o* these

rsks ha,e o *aca$ cose8ueces (or o$y cdeta$). As *or surace# e are

cocered th those rsks that ,o$,e a *aca$ $oss.

Pure "nd spe-u#"ti/e ris7s

= 22 =


28/60

The ter+ pure ris7s used to desate those stuatos that ,o$,e the chace o* $oss

or o $oss. *pe-u#"ti/e ris7 cotrast descrbes a stuato here there s possb$ty

o* a.

Fund"ment"# "nd P"rti-u#"r ris7s

Fund"ment"# ris7 ,o$,es $osses that are +persoa$ or ad cose8ueces.

They are roup rsks# caused *or the +ost part ecoo+c # soca$ ad po$tca$

pheo+eo# a$thouh they +ay a$so resu$t *ro+ physca$ occurreces.

E. ar # I*$ato# Earth8uakes# F$oods# e.t.c.

P"rti-u#"r ris7s,o$,e $osses that arse out o* d,dua$ e,ets & are *e$t by

d,dua$s rather tha by the etre roup. They +ay be statc or dya+c.

E. The bur o* house or robbery o* a bak.

*t"ti- "nd D9n"mi- ris7s

D9n"mi- ris7sare those resu$t *ro+ chaes the ecoo+y. E. Chaes the

prce $e,e$# cosu+er taste# co+e ad output ad techo$oy +ay cause *aca$ $oss

to the +e+ber o* the ecoo+y. !ce these dya+c rsks +ay a**ect a $are u+ber o*

d,dua$s# they are eera$$y cosdered $ess predctab$e tha statc rsks# sce they

do ot occur th ay precse deree o* reu$arty.

*t"ti- ris7s,o$,e those $osses that occur e,e * there ere o chaes the

ecoo+y. E%"osses arse due to per$s o* ature& dshoesty o* other d,dua$s.

= 2> =


29/60

(nsur"n-e@Accord to a report# IdaHs surace sector# hch s tess a rapd roth#

s $ke$y to touch about =!7 3 b$$o pre+u+ co+e by 11# +ak the

coutry oe o* the top three $*e surace ad top 05 o:$*e surace +arkets by

11.

The surace dustry $$ cotue to outpace the rapd ecoo+c roth to

reach =!7 25:3 b$$o pre+u+ co+e by 11 (appro+ate$y Rs 0:11

$akh crore)# +ak Ida a+ost the top three $*e surace +arkets ad top 05

o:$*e surace +arkets by 11# the report by Federato o* Ida Cha+ber

o* Co++erce ad Idustry (FICCI) ad the Bosto Cosu$t @roup ( BC@) has

sad.

The tota$ peetrato o* surace (pre+u+ as percetae o* @7%) has creased

to 5.1 per cet 100 *ro+ 1.2 per cet 10# sad the report tt$ed Ida

Isurace : Tur 0# @o o 1.

"in -h"r"-teristi-s o$ insur"n-e1 Poo#in% ris7@

2 Redu-es )u#ner"bi#it9@

> Pro/ides more -omp#ete -ompens"tion

N"ture o$ insur"b#e ris7s

4$y pure rsks are surab$e. Isurace s ot cocered th protecto o*

d,dua$s aast those $osses ars out o* specu$at,e rsks. !pecu$at,e rsk s

,o$utar$y accepted because o* ts to:d+esoa$ ature# hch c$udes the

possb$ty o* a.

Prin-ip#es $or pro/idin% (nsur"n-e

= 24 =


30/60

A $are u+ber o* s+$ar uts shou$d be eposed to the rsk# re$at,e to tota$

popu$ato.

There shou$d be $+ted po$cyho$der cotro$ o,er the sured e,et.

There shou$d be estece o* surab$e terest# .e. the po$cyho$der shou$d be

the oe ho su**ers the $oss the e,et o* a rsky a**ar.

"osses shou$d be deter+ab$e ad +easurab$e.

Accurate *or+ato shou$d be a,a$ab$e to be used sett pre+u+s.

%re+u+s shou$d be ecoo+ca$$y a**ordab$e to poteta$ po$cy ho$ders.

%o$cyho$ders shou$d bee*t *ro+ +ore tha just the a+out pad out * the

sured rsk occurs

De$inition o$ ris7 m"n"%ementRis7 "n"%ement +eas a course o* acto p$aed to reduce the rsk o* a e,et

occurr# ad ++6 or cota the cose8ueta$ e**ects shou$d that e,et

occur.

I order to ache,e ths# a rsk +aae+et po$cy shou$d be put p$ace. !uch a

po$cy $$ eed to be appro,ed by the seor +aae+et ad resposb$tes

acko$eded.

41 PROCE** OF R(*K ANAGEEN! (N 5*L

= 2 =


31/60

A Determin"tion o$ Ob?e-ti/e() The ,arous types o* the rsk that the B!" *ace# or +ay *ace# th cases.

() Faca$ I+p$catos *aced by the ora6ato.

,i/3 Too$s adopted by the co+pay to +eet ,arous re8ure+ets.

(,) The a+out o* rsk tras*erred to the surer.

= 2 =


32/60

(,) Faca$ +p$catos o* de$ay ett the co+pesato.

5 R(*K (DEN!(F(CA!(ON

The rsk +aaer +ust d to the operatos o* the ora6ato & dsco,erthe rsks to hch t s eposed.

?e +ust be ar+ed th re$e,at too$s o* tradeO & +ust +ake use the+.

The ,arous tech8ues o* Idet*cato o* rsk o* Bokaro !tee$ %$at are as *o$$o

() (nsur"n-e po#i-9 -he-7=#ist

,ii3 Ris7 An"#9sis Muestionn"ire

,iii3 Fin"n-i"# *t"tement An"#9sis

,i/3 "J"rds "nd Oper"bi#it9 *tud9

,/3 Ph9si-"# (nspe-tion o$ Oper"tions,/i3 F#o: -h"rts "nd Or%"niJ"tion"# -h"rt

,/ii3 C#"ims /s premium r"tios o$ #"st 9e"rs

C R(*K ANAL+*(*

!tatstca$ aa$yss & rsk +easure+et s to be take to cosderato here.

The +easure+et o* rsk starts th ather o* *or+ato #*o$$oed by

the aa$yss o* past eperece The e aa$y6e the se,erty o* rsk & ts perodcty to hch a

ora6ato s eposed.

D R(*K A**E*EN!

= 2 =


33/60

The cost o* rsk ca be $ooked at *ro+ u+ber o* d**eret perspect,es

.there s at $east the/

a. *re8uecy o* rsk

b. +oetary cost or *aca$ se,erty

c. hu+a cost ter+s o* pa& su**er.

E (PLEEN!A!(ON OF DEC(*(ON

The decso *or dea$ th the rsk +ay be/

a. to reta the rsk: ths +ay be attaed th or thout a

Reser,e or a *ud.

b. to dea$ th the rsk throuh $oss pre,eto: proper $oss %re,eto prora++e +ust be desed & +p$e+eted.

c. to tras*er the rsk throuh surace.

F E)AL'A!(ON . RE)(EW

E,a$uato & re,e o* the rsk +aae+et prora++es per+ts the

+aaer to re,e decsos & dsco,er +stakes be*ore they beco+e cost$y.

A depedet rsk +t cosu$tat s a$so hred to e,a$uate the etre rsk

+aae+et .

(DEN!(F(CA!(ON OF P'RE R(*K (N 5*L

= 2 =


34/60

R(*K* LOW ED(' (GA PROPER!+ R(*K

0. *re

1.earth8uake 2. *$ood

3. typhoo

5. udato

9. strke rots & +a$cous da+ae

. $ht

D. terrors+

;. +achery breakdo

0. e$ectroca$ e8up+et breakdo

5 L(A5L(!+ R(*K

0. rsk o* o th the ha6ardous as

1. 7rectors & o**cers $ab$ty.

CR(*K ARR(*(NG O'! OF !E F

FA(L'RE* OF O!ER*

0. %oer supp$y break do.

1. ater supp$y chae$ breakdo

D PER*ONAL R(*K

0.Accdeta$ death dur ork E !RAN*(! R(*K

0.7a+ae or $oss o* oods dur trast

= 2 =


35/60

PRO5A5LE A&(' LO** OF P'RE R(*K

A)ERAGE LO** PER ACC(DEN! FREM'EC+ OF ACC(DEN! (N APL

,Rs in Crs3

A PROPER!+ R(*K0. *re 1 to 2 0

1.earth8uake No cdet so *ar 0

2. *$ood No cdet so *ar

3. typhoo No cdet so *ar

5. udato No cdet so *ar

9. strke rots & +a$cous da+ae No cdet so *ar 0

. $ht No cdet so *ar 0

D. terrors+ No cdet so *ar 0

;. +achery breakdo 1 to 2 0P

0. E$ectrca$ e8up+et 1 to 2 0

5 L(A5L(!+ R(*K

0. rsk o* o th the ha6ardous as Mor accdet reported so *ar5 to 0

1. 7rectors & o**cers $ab$ty. !o *ar o accdet reported0 to 5

C R(*K ARR(*(NG O'! OF

FA(L'RE* OF O!ER*

0. %oer supp$y break do. No +ajor cdet so *ar 0 to 0

1. ater supp$y chae$ breakdo do 0 to 0

D PER*ONAL R(*K

0. accdeta$ death dur ork 1 to 2 0 to 1

E !RAN*(! R(*K

" #osses be#o: #"7hs 0 or 1 15

b #osses "bo/e #"7hs 1 or 2

Note @ PL $or m"-hiner9 bre"7 do:n is in-#udin% #oss o$ pro$it

= >0 =


36/60


37/60

b Det"i#s o$ $ire "pp#i"n-es "/"i#"b#e :ith 5o7"ro *tee# Fire *er/i-e

*( NO !+PE OF APPL(NACE* N'5ER OF

APPL(ANCE*

1 ater Teder %u+p(Type A &Type ) 142 ?ydrau$c p$at*or+ 1

> Crash Fre Teder >

4 E+erecy Rescue Teder 1

7ry Che+ca$ poder Teder 1

Foa+ Teder 2

4thers (1 & 3 hee$ers) 1

!O!AL >

- P#"nt #"9outA*ter ,e the p$at t has bee obser,ed that shops are de$y $ocated# ad rsk s

de$y spread. ?ece chaces o* spread o* *re are ++u+.

Thus probab$e +a+u+ $oss at partcu$ar p$ace s ++u+.

d N"ture o$ the "ssets@

!ce o$# $ubrcats & ha6ardous te+s are used p$at# hece chaces o* *re s

+a+u+ ths case

Majorty o* cost$y e8up+et are e$ectrca$ sta$$atos heces chaces o*

catch the *re s +a+u+.

There are u+bers o* cab$e a$$eres & o$ ce$$ars the shops here chaces o*

*re ad cocetrato o* rsk s hh.

e C#e"n#iness o$ p#"ntThe c$ea$ess o* p$at s satisfactory.

$ *"$et9 "rr"n%ement o$ e#e-tri-"# eIuipment@

There s ade8uate sa*ety arrae+et o* e$ectrca$ e8up+et.

= >2 =


38/60

% *pont"neous -ombustion@

!ce coa$ & su$phur are stored hue 8uatty hece chaces o* spotaeous

co+busto s maximum.

2 E"rthIu"7e@!ce Bokaro stee$ p$at $es F#ood@As the area ear the p$at s ha, high altitude from sea,thus chaces o* *$ood are

a$so ,ery re+ote

4 !9phoon@

Bokaro stee$ p$at s /er9 $"r $rom se"# so ha, chaces o* typhoo s ,ery $ess.

(nund"tions@

As the rate o* ra*a$$ s +oderate Bokaro# so the chaces o* udato are a$so

$o.

*tri7e riots . "#i-ious D"m"%e@There are re+ote chaces o* $oss by strke# rots & +a$cous da+ae as Bokaro stee$

p$at s uarded by CI!F.

Li%htenin%@There are +edu+ chaces o* $hte Bokaro# "ht arresters are sta$$ed at

,arous p$aces %$at as e$$ as toshp.

= >> =


39/60

!errorism@

I spte o* the *act that %$at s uarded by the CI!F hece chaces o* ay cdet et

reduced sde the p$at. ?oe,er the ater supp$y cae$ co+es *ro+ Teu 7a+ &

%oer !upp$y *ro+ 7


40/60

"ot o* posoous ases s eerated dur the producto process hch s ut$6ed

sde the p$at. The ases $ke coke o,e as# b$ast *urace as# carbo +oode etc

are ha6ardous ature ad +ay $ead to $oss o* $*e o* c,$as.

2 Dire-tors . o$$i-ers #i"bi#it9@ Bokaro !tee$ %$at dea$s th the ,arous statutoryre8ure+ets $ke taes# dutes# %o$$uto or+s etc. Fa$ure to co+p$y ay pro,so

reard ay $a +ay attract se,ere pea$ty to the o**cers & drectors o* the

co+pay.

CR(*K ARR(*(NG FRO FA(L'RE* OF O!ER*

1 Po:er supp#9 bre"7do:n@

The chaces o* poer supp$y *ro+ 7 =


41/60

ethods o$ h"nd#in% the Ris7

R(*K* Ris7

Ret"ined

Ris7

!r"ns$erred

Rem"r7s

A PROPER!+ R(*K

0. *re Isurace

1.earth8uake Isurace

2. *$ood Isurace

3. typhoo Isurace

5. udato Isurace

9. strke rots & +a$cous

da+ae

Isurace

. $ht Isurace

D. terrors+ Isurace

;. +achery breakdo %re,et,e steps s

re8ured

0. E$ectrca$ e8up+et Isurace

5 L(A5L(!+ R(*K

0. rsk o* o th the

ha6ardous as

Isurace

1. drectors & o**cers $ab$ty. Isurace

C R(*K ARR(*(NG O'!OF FA(L'RE* OF

O!ER*

0. %oer supp$y break do. %re,et,e steps s

re8ured

1. ater supp$y chae$

breakdo

%re,et,e steps s

re8ured

D PER*ONAL R(*K

0.accdeta$ death dur ork %re,et,e steps s

re8ured

E !RAN*(! R(*K Isurace

1 $oss o* oods dur trast Isurace

= > =


42/60

(nterpret"tion8 Dis-ussion .Findin%s

AdeIu"-9 o$ methods o$ h"nd#in% the ris7 in *A(L5*L

Propert9 Ris7@ = I !AI" B!" the property rsks are tras*erred to suraceco+paes throuh the *o$$o po$ces.

,i3 Mea Rsk %o$cy

() E$ectroc E8up+et Isurace po$cy

() Terrors+ %o$cy

A*ter the aa$yss o* the abo,e:+etoed po$ces *o$$o pots ha,e bee

re,ea$ed.0. The %$at & Machery# !tores & 4ther e8up+ets ha,e bee sured o

restate+et ,a$ue uder Mea Isurace %o$cy as per the *o$$os/:

1.

E$ectroc E8up+et Isurace %o$cy !u+ Assured 5.39 Crs

2. Terrors+ Rsk %o$cy !u+ assured 229.09Crs

= > =

P"rti-u#"rs *um Assured

,Rs in -rs3

0. %$at & E8up+et 22D.;D

1. !tores# !pares# E8up+et# Mor Ra +atera$# M!#

?!7# 4$s# "ubrcats etc o* stores depart+et $y

sde & outsde the p$at pre+ses

912.0

2. C&IT E8up+et 3.D

3. Bokaro @eera$ ?ospta$ 12.2

5. !tock o* !u$phur !tored at


43/60

List "nd e6p#"n"tion o$ m"?or po#i-9 "/"i#"b#e in 5*L

1 "rine open -o/er po#i-9Ths s a po$cy *or c$et eaed substata$ teratoa$ trade +port or

eport oods ad ha, substata$ turo,er.

aA ope co,er s ot a e*orceab$e cotract o* +are surace. It s a aree+et

bd hoors# uder hch the surer $$ accept dec$arato ad ssue sta+ped

spec*c po$ces or cert*cates o* surace aast each dec$arato.

bA ope co,er s ssued *or a 01 +oth perod. The ad,ataes o* ope co,er are:

() The aree+et s cotuous so that there s o rsk o* partcu$ar shp+ets

re+a usured throuh o,ersht# ad,ertet o+sso or de$ay +ak

dec$arato.

()Rates o* pre+u+ are eera$$y *ed ad areed ad,ace as *ar as possb$e

ad +ay there*ore be c$uded accurate$y cost.

() I absece o* su+ sured there s o possb$ty o* ett ehausted.

c. Bass o* ,a$uato s CIF ,a$ue p$us 0 percet.

d. Ad,ace pre+u+ to co,er est+tated shp+ets *or at $east 2 +oth s to be pad.

The dec$arato shou$d be *urshed th 05 days *ro+ the date o* shp+ets the

case o* +ports ad 1 hours o* ,esse$ the case o* eport.

e.The addtoa$ pre+u+ *or co,erae uder o c$ass*cato o* ,esse$ ou$d be

chared.

f.For *u$$ $oad +port cos+ets ad eport t s abso$ute ecessary that ,esse$s are

appro,ed by @IC ad,ace *or partcu$ar ,oyae. 4therse docu+et ou$d attract

o appro,a$ etra pre+u+ o* approprate rate.

Commodit9 des-ription= A$$ +ported +atera$ (ec$ud F$uorspar# $ubrcat#

!u$phur here surace s arraed separate$y) as e$$ as e8up+et-+atera$ set *or

repar or co+ a*ter repar.

)E**EL L((!=15 Crs

= > =


44/60

2 Co/er"%e o$ $ire8 the$t "nd bur%#"r9 po#i-9

%o$cy s take by corporate o**ce *or d**eret stee$ p$at uder !AI" ad a$so the

other uts o* !AI".

%o$cy a+e


45/60


46/60

Det"i#s o$ tr"nsit under


47/60

POLC+ DE!A(L AND CO)ERAGE

1Accdet ork p$ace

Do-uments to be submitted Reportin% time *ubmission o$

do-ument

. B@? +edca$ report

th 2 days o* the

occurrece o* the

accdet

A$$ the sub+sso o*

docu+et shou$d be doe

th 295 days.

. Medca$ cert*cate

. %hoto o* da+aed parts

,. A$$ paes o* +edca$ report

,. :rays

2Accdet ay:here IN7IA


do-ument

. Ijury o ork th 2 days o* the

occurrece o* the

accdet

A$$ the sub+sso o*


th 295 days.

. B@? +edca$ report

. Medca$ cert*cate

,. %hoto o* da+aed parts

,. A$$ paes o* +edca$ report

,. :rays

>7eath ay:here IN7IA

= 42 =


48/60


do-ument

. FIR

th 2 days o* the

occurrece o* the

accdet

A$$ the sub+sso o*


th 2 +oths

. 7eath cert*cate

. %ost: +orte+ report

,. B!" $etter

,. I8uest report

47eath ork p$ace


do-ument

. Ijury at ork

th 2 days o* the

occurrece o* the

accdet

A$$ the sub+sso o*


th 2 +oths

. FIR

. 7eath cert*cate

,. %ost: +orte+ report

,. B!" $etter

,. I8uest report

= 4> =


49/60

A/i"tion

7@CA .e. 7rectorate eera$ o* c,$ A,ato s resposb$e *or +p$e+et#

cotro$$ ad super,s Ar orthess stadards B!".

B!" has ot 0 arp$ae o* tota$ D ( Q 0) seated *ac$tes orth Rs 13 crores.

It has too ot thrd party $ab$ty po$cy o* Rs 0.5 crs.

It has ot persoa$ accdet co,er o* tota$ Rs 13 $akhs .e. (2 P D).

Co,erae *or $oss o* baae ad persoa$ artc$e J Rs 5# per perso.

It has ot speca$ po$cy *or $oss o* $cese o* %$ot J Rs 2 $akhs.

The deductab$e ecess s Rs 05 $akhs.

is-e##"neous po#i-91 !he$t "nd bur%#"r9

=der ths po$cy a$$ the $oss outsde p$at s co,ered

E.. Educatoa$ depart+et co+puter ad Ite$$ece ad securty depart+et

2 *pe-i"# -ontin%en-9 po#i-9

"st o* E$e+ets that s co,ered uder ths po$cy:

"C7 (+ake sharp) B@?

1 $aptops

2 hh +ast $ht

> 5"%%"%e po#i-9

I ths the $oss o* Baae sde the pre+ses o* B@? ad B!" are co,ered

Co,erae $+t J Rs 5# per perso.

= 44 =


50/60

COND(!(ON 'NDER EORAND' OF 'NDER*!AND(NG

*(GNED 5E!WEEN *A(L AND (N*'RANCE COPAN+,LEADER3

h$e !a$ has take ME@A RI!K IN!=RANCE po$cy *ro+ ,arous surer order

to ha,e a e**cet ad sats*actory ser,ce. The basc re8ure+et reard pre+u+

ad sett$e+et o* c$a+ are a+ed+et be$o:

1 Do-ument"tion

a.The $eader surer $$ ssue the pre+u+ recept ad co,er ote *or the desred

co,erae th 1 days o* recept o* pre+u+ by the+.

b.Mea rsk po$cy $$ be ssued th 5 ork days o* recept o* pre+u+

c.Ay a+ed+et o* the po$cy sha$$ be co*r+ed by ssu edorse+et th 5

ork days o* recept o* the ecessary *or+ato-pre+u+ *ro+ !AI".

2 Appointment o$ sur/e9ors

a.The $eader surer sha$$ pro,de th 05 days o* s o* M4=# a pae$ o*

appro,ed sur,eyors th the pro+ty o* p$at-uts# to be ut$6ed *or assess the

$osses-da+aes aast the c$a+ to be $oded by sa$ p$ats-uts.

b.The $eader sha$$ ++edate$y depute or author6e the sured (!AI" p$at-ut) to

ca$$ a sur,eyor(s) *ro+ the appro,ed pae$ ot $ater tha 3D hours o* recept o*

t+ato *ro+ !AI" p$at-uts about the c$a+. I the e,et o* ay de$ay

deputato o* sur,eyor# !AI" p$at-uts reser,e the rht to eae ay other sur,eyor

*ro+ the pae$ at the cost o* uderrter.

c. The $eader surer $$ put p$ace c$a+s procedure that s post,e# pro+pt

trasparet ad taret *or LER4H pedecy status. The $ead surer $$ take a

*ortht$y report *ro+ the sur,eyor to sure the success o* the procedure ad keep sa$

posted.d.The sur,eyor sha$$ ca$$ *or a$$ the docu+ets support o* the c$a+ oe o but

ot pece +ea$ +aer *or epedtous sett$e+et o* c$a+# pre*erab$y at the t+e o*

,st or th 2 days therea*ter.

= 4 =


51/60

I* *or ay reaso !AI" p$a-uts does ot respod-pro,de a$$ the

partcu$ars re8ured by the sur,eyor# the surer or sur,eyor as the case +ay be sha$$

re+d th 1 eeks rt the cocered p$at-ut th a copy to !AI"

corporate o**ce.

e.The sur,eyor sha$$ sed hs *d to the $ead surer th 05 days o* hs ettdocu+et.

> C#"ims

a.!ett$e+et o* the c$a+s $$ be as per procedure *or+u$ated by surace co+pay.

C$a+s *or+ ad docu+ets ha,e to be sub+tted support o* the c$a+ as stated by

surace co+pay.

b.A$$ c$a+s $$ be sett$ed by the cocered $oca$ o**ce o* the $ead surer or

aroud !AI" p$at-o**ce.c.I case the c$a+ s ot *oud teab$e or ot sett$ed *or the c$a+ a+out# $oca$ o**ce

o* $ead surer $$ seek the co++ets o* cocered !AI" p$at-uts th a eek o*

rece, the sur,eyor report. The *a$ ,e sha$$ be take th 05 days o* recept o*

rep$y. I or+a$ crcu+staces the c$a+ has to be sett$ed th 2 days *ro+ the date

o* *rst *or+ato# et o* the t+e take by !AI" *or respod to sur,eyorHs or

uderrter co++ets.

d. 4N ACC4=NT %AMENT A@AIN!T C"AIM!:

I case o* c$a+s eceed Rs 1 $akhs # the uderrter sha$$ pro+pt$y +ake a o:

accout pay+et o* 5G o* the c$a+ed a+out th 05 ork days o* recept o*

pre$+ary report o* the sur,eyors. The pre$+ary sur,ey report sha$$ be ssued by

the sur,eyors th 5 ork days o* ther ,st subject to producto o* ++u+

re8ured deta$s ad *or+ato. ?oe,er# docu+ets re8ured to be obtaed *ro+

o,er+et aeces $ke FIRE *a$ report *ro+ po$ce authortes ad FIRE brade

report etc. sha$$ ot be bd *or re$ease o* 4N ACC4NT %AMENT. The sur,eyor

shou$d atted the ste th a perod o* ot +ore tha a eek o* the report o* $oss.

The ba$ace a+out o* c$a+ sha$$ be sett$ed ad pad th 2 days

a*ter sub+sso o* a$$ re$e,at docu+ets.

= 4 =


52/60

CLA(* PRO)(*(ON*

I* the sured or ayoe act o hs beha$* hders or obstruct the surer ay ay

t does ot co+p$y th ay reasoab$e reco++edato th respect to c$a+ uder

the po$cy. The surer +ay *or*et a$$ bee*ts c$a+ed uder ay secto o* the po$cy

*o$$o the ot*cato o* ay $oss or da+ae.

The surer sha$$ re+burse the sured *or ay chares property ad reasoab$e

curred pursuace o* ts dutes.

The surer s $ab$e *or $oss or da+ae o* hch he has rece,ed ot*cato or ca+e

to hs ko$ede otherse *ro+ ay other source th 2 days o* ts occurrece.

1 Ri%ht o$ insurer in -"se o$ " #oss

4 happe o* ay $oss or da+ae to ay o* the property sured ad *a$ sett$e+eto* c$a+s uder ths po$cy the surer +ay:

a.Eters the pre+ses ad spect o* such assets# da+aed p$ats ad +acheres

here the $oss or da+ae has happeed ad +ay take possesso o* or re8ured to be

de$,ered to t such assets o* the sured hch has bee da+aed *u$$ or part

pro,ded t does ot ha+per the process or producto or or+a$ busess act,ty.

b.The suredor ay perso act o hs beha$* sha$$ co+p$y th the re8ure+et o*

the surer ad sha$$ ot hder or obstruct the surer eercse o* ts poer. The

sured sha$$ ot ay case be ett$ed to abado ay such property to the surerhether take possesso o* by the surer or ot.

2 Rep"ir o$ minor d"m"%e

=po ot*y the surer# the sured +ay repar ay da+ae or rep$ace ay parts o*

the property sured that ha,e sustaed +or da+ae. I a$$ other cases the surerHs

aet sha$$ be ,e the opportuty to spect the $oss or da+ae be*ore ay repars

are a**ected ad * the surerHs aet does ot carry out the specto th a perod

o* t+e hch cou$d be cosdered reasoab$e uder the crcu+staces# the sured

sha$$ be ett$ed to proceed th the repar or rep$ace+et.

> Ori%in"# eIuipment m"nu$"-turer p"rts

= 4 =


53/60

It s *urther oted ad areed that the e,et o* physca$ $oss or da+ae to the

property sured here uder# the sured at ts so$e dscreto sha$$ ha,e the opto:

a.To repar-rep$ace *ro+ the suredHs o stock o* repars ad to carry out such repar

*ro+ ts :house +apoer. The +oetary c$a+s such case sha$$ be ca$cu$ated o

the bass o* suredHs o ,a$ue or +arket ,a$ue hche,er s $ess thout supportay ,oce. !o *ar as the ca$cu$ato *or the cost o* :house +apoer eaed

such repar or rep$ace+et s cocered# the bass sha$$ be the pay:sca$e o* ts

e+p$oyee.

OR

b.To accept repar-rep$ace+et ter+s as o**ered by property supp$er (4EM)

reard$ess o* ay others ter+s o**ered by other supp$er# +au*acturer or *abrcators .I

case o* c$a+ respect o* propretary te+s# the a+out o* c$a+ sha$$ be sett$ed as per

8uotato o* such supp$er. I case o* te+s other tha propretary te+s# the d**erecebetee the hher 8uote ad the $oest 8uote does ot eceed 5G pro,de that the

8uote o sa+e techo$oca$ spec*cato.

4 Obso#ete ,out o$ use3 sp"re p"rts

I the e,et o* sparer curret$y ssued here uder ad represeted th su+ sured

uder the po$cy o* surace beco+ obso$ete *o$$o a de+*ab$e $oss to the

ut ad-or uts to hch they be$o such spare parts a$so be dee+ed a costruct,e

tota$ $oss pro,ded a$ays that such parts caot be used as spares *or ay other uts

th the pre+ses o* the sured. Isurers reta sa$,ae rhts o,er such parts.

*"#/"%e

The sa$,ae o* ay sured property bear a brad or trade+ark# or the a+e o*

sured #hch ay ay carres or +p$es the uaratee or the resposb$ty o*

+au*acturer or the sured# the sa$,ae ,a$ue o* such da+aed property sha$$ be

deter+ed a*ter re+o,a$ the custo+ary +aers o* a$$ such brads.

The sured has *u$$ rhts to the possesso o* a$$ oods ,o$,ed ay

$oss uder ths po$cy ad reta cotro$ o* a$$ da+aed oods.

'nderinsur"n-e

I* the property hereby sured sha$$# at the co++ece+et o* ay da+ae# be

co$$ect,e$y or reater ,a$ue (+ore tha 0G) tha the su+ sured# the the sured

sha$$ be cosdered as be hs o surer *or the d**erece ad sha$$ bear the

= 4 =


54/60

rateab$e proporto o* the $oss accord$y. !a$,ae s to be cosdered the sa+e

proporto.

Reinst"tement o$ po#i-9 #imits

At a$$ the t+es dur the perod o* surace o* ths po$cy# the surace co,er $$be +ataed to the *u$$ etet o* the respect,e su+ sured cosderato o* hch

upo the sett$e+et o* ay $oss uder ths po$cy eceed the a+out spec*ed the

schedu$e# pro:rata pre+u+ *or the uepred perod *ro+ the date o* such $oss to the

epry o* the perod o* surace *or the a+out o* such $oss sha$$ be payab$e by the

sured to surer.

The addtoa$ pre+u+ re*erred abo,e sha$$ be deducted *ro+ the et c$a+ a+out

payab$e uder ths po$cy. Ths cotuous co,er to the *u$$ etet $$ be a,a$ab$e ot

thstad ay pre,ous $oss *or hch the surer +ay ha,e pad hereuder adrrespect,e o* the *act hether the addtoa$ pre+u+ as +etoed abo,e has bee

actua$$y pad o ot *o$$o such $oss. The teto o* ths codto s to esure

cotuty o* the co,er to the sured subject o$y to rht o* the surer *or deducto

*ro+ the c$a+ a+out# he sett$ed o* pro:rata pre+u+ to be ca$cu$ated *ro+ the

date o* $oss t$$ epry o* ths po$cy.

Notthstad hat s stated abo,e# the su+ sured sha$$ stad reduced by the

a+out o* $oss case the sured ++edate$y o occurrece o* $oss eercse hs

opto ot to restate the su+ sured as abo,e.

*e/ent9 t:o hours -#"use

It basca$$y co+prses o* *,e e,et:

i dstor+# hurrcae# typhoo# cyc$oe ad the $kes

ii Earth8uake

iii F$ood# udato ad te+pest

i/ Tsua+

/


55/60

Each $oss caused by dstor+# hurrcae# typhoo# cyc$oe ad the $kes sha$$

cotrbute a s$e c$a+ hereuder pro,ded# * +ore tha oe dstor+# hurrcae#

typhoo# cyc$oe ad the $kes sha$$ occur th ay perod o* 1 hours dur the

ter+ o* ths po$cy such dstor+# hurrcae# typhoo# cyc$oe ad the $kes sha$$ bedee+ed to be s$e dstor+# hurrcae# typhoo# cyc$oe ad the $kes th the

+ea thereo*.

4**ca$ reco6ed authorty (or as areed betee the surer ad sured) $$ check

the +o+et *ro+ hch each o* the a*oresad# perods o* 1 hours sha$$ be dee+ed to

ha,e co++eced but o to such 1 hours perod shou$d o,er$ap.

!a+e app$es *or earth8uake# *$ood# udato ad te+pest# tsua+# ,o$cac erupto

= 0 =


56/60

Obser/"tions@

0. ?oe,er t obser,ed that the su+ assured s ot ade8uate o restate+et ,a$e bass

as the e cost o* such a hue p$at +ay ru to 15 to 2 Crs.

1. It s *urther obser,ed that surace has bee take o ,ery se$ect,e bass stead o*

co,er the etre e8up+et# ra +atera$# e8up+ets & stores & spares.

2. The su$phur & coa$ s stored hue 8uatty hch s ot sured.

3. The past eperece shos that the *re8uecy o* cdet took p$ace s +ore

u+ber but se,erty s $ess. But the po$cy take s ha, po$cy ecess o* Rs 0

"akhs. It +eas that s+a$$ c$a+s are ot co,ered ad the c$a+ o,er ad abo,e thaRs 0 $akhs ca o$y be rea$6ed *ro+ surer.

5. Terrors+ %o$cy s a$so *or the se$ect,e bass hch s tota$$y ade8uate.

9. %ast eperece shos the $oss o* property as e$$ as $oss o* pro*t due to +achery

break do s bt too hh but st$$ t s ot co,ered Mea Isurace %o$cy.

. Mea surace po$cy co,ers the Fre & a$$ed per$s# Machery Break do as

e$$ as $oss pro*t but the ec$uso take *or +achery breakdo ad $oss o* pro*t

has destroyed the beauty o* Mea Isurace %o$cy.

A Li"bi#it9 Ris7@ The "ab$ty rsk !AI" B!" s tras*erred to suraceCo+pay throuh *o$$o %o$ces

Obser/"tions

The abo,e:+etoed po$ces are ade8uate co,er the ora6atoa$ rsk.

= 1 =

P"rti-u#"rs *um Assured

,Rs in -rs3

0. %ub$c "ab$ty %o$cy 05cr($+t 5 cr.

%er accdet)


57/60

5 R(*K ARR(*(NG O'! OF FA(L'RE* OF O!ER* @= The etre

rsk s retaed by the ora6ato.

Obser/"tions@=

The ora6ato s hh$y eposed to such type o* the rsk hch s ot prudet.

?oe,er ths case pre,et,e +easure $ke ehace+et securty etc a$so +ay ot

be ade8uate s a,od the rsk o* +a$cous break:do by the Maost.

CPER*ONAL R(*K@=The etre rsk to the $oss o* $*e o* e+p$oyees ork the ora6ato s retaed th the ora6ato.

Obser/"tions@ =The %M" ths case s ,ery s+a$$ ad the *aca$ posto o* the co+pay s ,ery

soud to reta ths rsk th tse$*

D !RAN*(! R(*K@= The trast rsk o* !AI"-B!" s tras*erred to Isuraceco+paes throuh the *o$$o po$ces/:

P"rti-u#"rs *um Assure

,Rs in -rs3

0. Mare %o$cy *or Ideous trast 9

1. Mare I+port & Eport %o$cy 9

Obser/"tionsThe abo,e:+etoed po$ces are ade8uate co,er the ora6atoa$ rsk.

POL(C+ *'GGE*!(ON* . CONCL'*(ON

The +ethods & tech8ues used by the B!" s rea$$y bee*ca$ *or the p$at to

reduce the $osses occurred due to d**eret types o* rsks ,o$,ed t.

= 2 =


58/60

!o+e steps or correctos eed to be take order to reduce the rsk as e$$

as co,er up the $osses that arses *ro+ the rsk. !o *o$$o are suestos

hch are to be *o$$oed +y pot o* ,e. They are/

1h$e check the ade8uacy o* +ethods o* had$ the rsk t has bee ca+eto ko that a$$ assets are ot co,ered the po$cy $ke stores & su$phur etc.

?ece the step *or co,er the etre assets s to be take.

2The po$cy ecess hch are take by the B!" eed to be reduced *ro+ 10 #"7hs

to 1 #"7hs

>"-hiner9 bre"7do:n . #oss o$ pro$itshou$d a$so be sured.

4The terrorismrsk co,erae eeds to be deed partcu$ar$y the assets $ocated

outsde the p$at boudary.

By the abo,e dscussos the study e *oud that B!" has bee surrouded

th d**eret types o* rsks hch rea$$y +ake a reater +pact o the

per*or+ace as e$$ as pro*tab$ty o* the !AI". B!" uses surace as a too$ o*

rsk tras*er +ethod e**ect,e$y. ?oe,er cosder the rsk tak ab$ty o* the

!AI" as a ho$e# the co+pay ca a$so try to adopt the rsk poo$ +ethod. It $$

he$p to reduce the cash out*$o o* appro+ate$y 9 Crs aua$$y.

f r nc s

= > =


59/60

(N!ERNE! *(!E*@

.sa$.co. .ecoo+yatch.co+.bokarostee$.co+ .stee$.c.

.dabusess.c. .oo$e.co+

.ecyc$opeda.co+ .e8uty+aster.co+

.ac$.co+ .atoa$suraceda.co+

.cc$o+bard.co+ .rdada.or

oreta$surace.c. .uc.co.

= 4 =
http://www.sail.co.in/http://www.bokarosteel.com/http://www.niacl.com/http://www.icicilombard.com/http://www.sail.co.in/http://www.bokarosteel.com/http://www.niacl.com/http://www.icicilombard.com/


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