TATA AIG General Insurance Company

11 December 2019

All Heads Commercial Lines Distribution

All Zonal Heads (Property and Energy)
All Zonal Heads (Broking, Agency, Bancassurance and HOM)
Subject:

Revision in TATA AIG’s PROPORTIONAL and NON-PROPORTIONAL Treaty UW YR 2019-20

Revision in IIB Occupancy Rates Effective 01 JAN 2020.

Addendum to Circular No: PROP/EER /CO/NOV 2019 /02/ Dated 27 NOV 2019.

Dear All,

National Reinsurer GIC Re has made amendments to Property and Energy line of business Reinsurance
treaty contract with effect from 01 JAN 2020. Consequently, there would be impact on risk rating for all
occupancies underwritten through various offices.

GIC Re has advised specific methodology for rating risks in all the occupancies which has been
elaborated below.

For cessions to treaty across ALL occupancies, the following rates and terms to apply:

A) Rating Methodology:

The Gross written premium for cession to treaty on above mentioned occupancies to be determined as
under:

1. IIB Loss cost rate published vide circular dated 22 Nov 2019 (refer Annexure B) or any future
revisions to these rates by IIB PLUS

2. NATCAT rates (As per Annexure A) PLUS

3. In case of All Risk / IAR / MEGA policies the following minimum rates are additionally to be
charged

MBD 0.25 Per mille

MLOP 1 per mille * * Rates are
100% of Fire rate* charged (IIB + NATCAT irrespective of
FLOP indemnity period
OR IIB rate if NO NACAT cover availed)
PLUS
 TATA AIG General Insurance Company

4. The total rate so arrived (1+2+3) may be further appropriately loaded based on reinsured’s own
experience of procurement / management expenses or any other relevant costs before the final
rate is arrived at.

B) OTHER GENERAL GUIDELINE:

a. For Petro chemical risks excluding the Refineries, the minimum rate applicable is the loss
cost rate as per occupancy code 2043 of IIB loss cost circular (refer Annexure B) plus the
rates as per points 2,3,4 of paragraph “A” above.
b. For all cessions to treaty for ALL occupancies, even if the insured wants to delete EQ or
STFI or both, the minimum cession price has to be NATCAT (EQ + STFI) rates.
c. Cancellation / preponement of all policies renewing on or after 1 st JAN 2020 to a date
prior to 1st JAN 2020 would be permitted only if the premium working is done as per rating
methodology as described in paragraph “A” above.

Arising out of the above changes in the treaty contract wordings, effective today all new proposals and
cancellation / preponement of all existing policies would be done at New IIB rates only. All are requested
to kindly make a note of it and ensure compliance.

Sudhir Khare

Sr Vice President and National Head – Property and Energy

 TATA AIG General Insurance Company

Annexure A
Minimum NATCAT Rates Circular.
TATA AIG General Insurance Company
 TATA AIG General Insurance Company

Annexure B
IIB Rates per mille (FLEXA incl. RSMD):

Sr. Occupancy Occupancy Description IIB -Loss Cost

No. Code
1 1001 Dwellings 0.14
2 1001_2 Dwellings: Cooperative Society 0.24
3 1002 Places of worships 0.12
4 1003 Libraries 0.21
5 1004 Museums 0.23
6 1005 Schools / Colleges 0.2
7 1006 Hospitals including X-ray and other Diagnostic clinics 0.23
8 1007 Office premises / Meeting Rooms 0.25
9 1008 Auditoriums / Planetarium 0.28
10 1009 Mess Houses / Clubs 0.21
11 1010 Marriage Halls 0.18
12 1011 Showrooms and display centres where goods are kept for 0.28
display and no sales are carried out
13 1012 Educational and Research Institutes imparting training in 0.24
various crafts
14 1013 Lodging/Boarding Houses 0.19
15 1014 Cycle Shed 0.22
16 1015 Dish Antenna 0.23
17 1016 Indoor stadiums, Health Club, Gymnasium and Swimming 0.08
Pool
18 1017 Cafes, Restaurants, Hotels, Confectioner and Sweet meat 0.25
sellers, Health Resorts
19 1018 Laundries / Dry Cleaning 0.51
20 1019 Battery Charging Service Stations 0.96
21 1020 Amusement parks 0.78
22 1021 Hoarding, Neon signs 0.99
23 1022 Sports Galleries, Outdoor stadiums 1.43
24 1023 Shops dealing in goods otherwise not provided for 0.66
25 1024 Shops dealing in hazardous goods 0.84
26 1025 Arms and Ammunition dealers 0.98
27 1026 Motor Vehicle showroom including sales and service 0.47
28 1027 Fuel Station- Petrol / Diesel Kiosks (without CNG) 0.53
29 1028 Fuel Station- Petrol / Diesel Kiosks (with CNG) 1.11
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30 1029 Data Processing/Call Centres/Business Process 0.14

Outsourcing Centres
31 2001 Abrasive Manufacturing 0.69
32 2002 Aerated Water Factories 0.62
33 2003 Aerial Ropeway including trolley stations 0.8
34 2004 Agarbatti Manufacturing 1.65
35 2005 Aircraft Hangers 1.14
36 2006 Airport Terminal Buildings (including all facilities like 0.29
Cafes, Shops etc)
37 2007 Aluminium/ Magnesium Powder Plants 0.88
38 2008 Aluminium, Zinc, Copper Factories 0.65
39 2009 Areca nut and/or Betel nut factories 1.07
40 2010 Asbestos Steam Packing and lagging manufacturing 0.61
41 2011 Atta and Cereal Grinding (excluding Dal Mills) 0.73
42 2012 Audio/Video Cassette Manufacturing 2.08
43 2013 Automobile Manufacturing 0.53
44 2014 Bakeries 0.7
45 2015 Basket Weavers and Cane Furniture Makers 2.66
46 2016 Battery Manufacturing 0.65
47 2017 Beedi Factories 1.32
48 2018 Biscuit Factories 0.68
49 2019 Bituminised Paper and / or Hessian Cloth Manufacturing 1.37
including Tar Felt Manufacturing
50 2020 Book Binders, Envelope and Paper Bag Manufacturing 1.13
51 2021 Breweries 0.97
52 2022 Brickworks (including refractories and fire bricks) 0.41
53 2023 Bridges - Concrete/Steel 0.18
54 2024 Bridges-Wooden 1.02
55 2025 Building In course of construction 0.18
56 2026 Cable Manufacturing 1.03
57 2027 Camphor Manufacturing 1.56
58 2028 Candle Works 1.65
59 2029 Canning Factories 0.86
60 2030 Capsule Manufacturing 0.66
61 2031 Carbon paper / Typewriter Ribbon Manufacturing 1.37
62 2032 Cardamom Factories 1.02
63 2033 Cardboard Box Manufacturing 1.42
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64 2034 Carpenters, Wood wool Manufacturing, Furniture 1.51

Manufacturing and other wood worker shops (excluding
saw mill)
65 2035 Carpet and Drugget Manufacturing (Cotton/jute/wool) 1.78
66 2036 Carpet and Drugget Manufacturing (Others) 1.67
67 2037 Cashew nut Factories 0.95
68 2038 Cattle feed Mill 0.61
69 2039 Celluloid Goods Manufacturing 9.47
70 2040 Cement / asbestos/concrete products Manufacturing 0.51
71 2041 Cement Factories 0.68
72 2042 Ceramic Factories and Crockery and Stoneware pipe 0.78
Manufacturing/Clay Works
73 2043 Chemical Manufacturing (Using materials with Flash Point 1.39
below 32 degree C), Bulk Drug Manufacturing
74 2044 Chemical Manufacturing (others), Pharmaceuticals, 1.01
Toiletry products
75 2045 Cigar and Cigarette Manufacturing 0.85
76 2046 Cigarette Filter Manufacturing (Using Solvents with Flash 2.54
Point below 32 degree C)
77 2047 Cigarette Filter Manufacturing (Others) 1.49
78 2048 Cinema Film Production Studios 2.64
79 2049 Cinematography Film Editing, Laboratory and Sound 0.73
recording rooms where Film processing is carried out
80 2050 Cinematography Film Editing, Laboratory and Sound 0.62
recording rooms without Film processing
81 2051 Cinema Theatres (For single screen) 0.4
82 2052 Circus, Touring Drama Troupes and Touring Cinema 6.35
Theatres
83 2053 Cloth Processing units situated outside the compound of 1.1
Textile mills and Cloth processing units which are not
owned by the textile mills but are situated within the
textile mills complex/compound.
84 2054 Coal/Coke/Charcoal ball and briquettes Manufacturing 1.63
85 2055 Coal Processing Plants 0.77
86 2056 Coffee Curing, Roasting / Grinding 0.64
87 2057 Coir Factories 2.07
88 2058 Collieries - underground Machinery and pit head gear and 1.51
Dragline Machine used in Collieries
89 2059 Condensed Milk Factories, Milk Pasteurising Plants and 0.5
Dairies
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90 2060 Confectionery Manufacturing Plants/Sugar Candy 0.82

Manufacturing Plants/Sweet Meat Manufacturing Plants
91 2061 Contractors Plant and Machinery - At one location only 0.89
92 2062 Cork Products Manufacturing 2.14
93 2063 Cotton Gin and Press Houses 1.79
94 2064 Cotton Seed cleaning / Delinting Factory 1.99
95 2065 Dehydration Factories 0.69
96 2066 Detergent Manufacturing with Sulphonation Plant 1.23
97 2067 Detergent Manufacturing (Others) 1.29
98 2068 Distilleries 0.89
99 2069 Duplicating/stencil paper Manufacturing 1.9
100 2070 Electric Generation Stations - Hydro Power stations 0.45
101 2071 Electric Lamp /T.V. Picture Tube Manufacturing 0.88
102 2072 Electronic Goods Manufacturing /Assembly 0.83
103 2073 Electronic Software Parks/Electronic Software 0.16
Development Units
104 2074 Enamel-ware factories 1.07
105 2075 Engineering Workshop - Structural Steel fabricators, Sheet 0.32
Metal fabricators
106 2076 Engineering Workshop (Others), Motor Vehicle Garages 0.61
107 2077 Exhibitions, Fetes, Mandaps 3.07
108 2078 Explosives / Blasting Factories 2.28
109 2079 Fertiliser Manufacturing (other than those rateable under 1.13
Petrochemical Tariff)
110 2080 Filter and wax paper Manufacturing 1.99
111 2081 Fireworks Manufacturing 2.51
112 2082 Flax / Hemp Mills 1.27
113 2083 Flour Mills 1.35
114 2084 Foamed Plastics Manufacturing and / or converting plants 2.67
115 2085 Foam Rubber Manufacturing 2.48
116 2086 French Polish Manufacturing 2.7
117 2087 Fruit and vegetable drying/dehydrating factories 0.88
118 2088 Fruit products and Condiment Factories (including fruit 0.64
pulp making)
119 2089 Garment Makers, Topee, Hats and the like makers 0.97
120 2090 Ghee Factories including vegetable Ghee manufacturing 1.2
121 2091 Glass Fibre Manufacturing 0.96
122 2092 Glass wool Manufacturing 1.45
123 2093 Glass Manufacturing/Automobile Glass Manufacturing 0.92
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124 2094 Gold thread factories / Gilding factories 0.72

125 2095 Granite Factories using inflammable solvents 0.62
126 2096 Granite Factories (Others) 0.29
127 2097 Graphite electrode Manufacturing 1.32
128 2098 Grain/seeds disintegrating/crushing/ Decorticating 0.93
factories/Dal mills
129 2099 Grease / Wax Manufacturing 1.43
130 2100 Green Houses/ Algae/ Spirulina and the like 1.15
131 2101 Gum/Glue/Gelatine Manufacturing 0.94
132 2102 Gypsum board manufacturer 0.97
133 2103 Hosiery, lace, Embroidery/Thread factories 1.11
134 2104 Ice candy and Ice cream Manufacturing 0.67
135 2105 Ice factories 0.67
136 2106 Incandescent Gas mantle Manufacturing 1.67
137 2107 Industrial Diamonds Manufacturing 0.67
138 2108 Industrial Gas Manufacturing 1.33
139 2109 Ink (excluding printing ink) Manufacturing 1.29
140 2110 Jaggery Manufacturing 0.77
141 2111 Jute Mills 2.58
142 2112 Katha Manufacturing 1.89
143 2113 Khandsari Sugar Manufacturing 0.98
144 2114 Lac or Shellac Factories 1.4
145 2115 Leather Cloth Factories 1.98
146 2116 Leather Goods Manufacturing (including boot/shoe) 1.09
147 2117 Lime Kiln 0.68
148 2118 Lithographic presses 1.16
149 2119 Liquefied Gas Bottling/Recovery Plants 0.91
150 2120 Malt Extraction Plants 0.95
151 2121 Man-made Fibre Manufacturing (using Cellulose) 0.47
152 2122 Man-made Fibre Manufacturing Plant (Others) 0.52
153 2123 Manure Blending works 0.97
154 2124 Match Factories 2.76
155 2125 Mattress and Pillow making 2.96
156 2126 Metallizing works (involving metals only) 0.58
157 2127 Metallizing Works (others) 0.76
158 2128 Metal/Tin printers 2.09
159 2129 Mica Products Manufacturing 1.04
160 2130 Mineral Oil blending and processing 0.61
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161 2131 Mosaic Factories 0.8

162 2132 Mushroom Growing Premises (Excluding Crops) 0.75
163 2133 Nitro Cellulose Manufacturing - Industrial Grade 9.27
164 2134 Non-woven fabric Manufacturing 1.81
165 2135 Oil Extraction 1.38
166 2136 Oil Distillation Plants (essential) 1.2
167 2137 Oil Mills refining (Veg/Animal) 0.99
168 2138 Oil Mills (Vegetable) 0.96
169 2139 Oil and Leather Cloth Factories 2.02
170 2140 Paint factories (Water based) 1.15
171 2141 Paint (others) and Varnish Factories 1.82
172 2142 Paints - Nitrocellulose based 2.21
173 2143 Pan Masala making 1.04
174 2144 Paper and Cardboard Mills (including Lamination) 1.04
175 2145 Particle Board Manufacturing 1.82
176 2146 Pencil Manufacturing 1.72
177 2147 Petroleum Coke Calcination 0.95
178 2148 Plastic Goods Manufacturing (excluding Foam Plastics)/ I. 1.62
Using Plastic raw materials having calorific value upto
15,000 btu/lb Polytetrafluoroethylene, Polychorotrif,
fluroehtylene, Polyvinyl chloride, polyvinylidene chloride,
Polyvinylidene fluoride, Chlorinated polyether,
Polycarbonate, Polymethyl methacrylate, Phenol
formaldehyde, Urea-formaldehyde. Melamine-
formaldehyde, Polyurethane, Polyester, Silicones
179 2149 Plywood / Wood veneering Factories/ Laminating 2.65
Factories
180 2150 Polyester Film Manufacturing / BOPP Film Manufacturing 0.67
181 2151 Port Premises including jetties and equipment thereon 0.39
and other port facilities
182 2152 Poultry Farms (Excluding birds therein) 0.51
183 2153 Presses for coir fibres/waste/Grass/fodder/boosa/Jute 6.08
184 2154 Presses for coir yarn / cotton/senna leaves 2.38
185 2155 Presses for carpets, rugs and tobacco 2.17
186 2156 Presses for hides and skins 1.6
187 2157 Printing Ink Manufacturing / Roller composition factories 1.57
188 2158 Printing Press 0.98
189 2159 Pulverising Plants (Metals and non-hazardous goods) 0.5
190 2160 Pulverizing Plants (Others) 1.51
191 2161 Rice Mills 0.73
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192 2162 Rice Polishing Units 0.84

193 2163 Rope works (Plastic), Assembling of Plastic Goods such as 1.25
Toys and the like
194 2164 Rope Works (others) 0.78
195 2165 Rubber Factories 1.57
196 2166 Rubber Goods Mfg with Spreading 1.92
197 2167 Rubber Goods Manufacturing without spreading 1.15
198 2168 Salt crushing Factories and Refineries 0.45
199 2169 Saw Mills (including Timber Merchants premises where 2.84
sawing is done)
200 2170 Sea Food / Meat Processing 1.1
201 2171 Silk Mills / Spun Silk Mills 0.84
202 2172 Snuff Manufacturing 1.08
203 2173 Soap Manufacturing 1.09
204 2174 Sponge Iron Plants 0.85
205 2175 Spray Painting, Powder coating 1.5
206 2176 Stables (excluding animals) 0.77
207 2177 Starch Factories 0.75
208 2178 Stone quarries 0.27
209 2180 Sugar factories 0.55
210 2181 Surgical Cotton Manufacturing 2.56
211 2183 Tanneries 0.52
212 2184 Tapioca factories 1.07
213 2185 Tarpaulin and canvas proofing factories 2.28
214 2186 Tea blending/packing factories 0.7
215 2187 Tea Factories 1.12
216 2188 Telephone Exchanges 1.93
217 2189 Textile Mills - Spinning mills 0.97
218 2190 Tile and Pottery works 0.71
219 2191 Tiny sector Industries with values at risk not exceeding Rs 0.65
10 lakhs
220 2192 Tissue Culture Premises (Excluding Crops) 0.8
221 2193 Tobacco Curing / Redrying Factories 1.19
222 2194 Tobacco grinding/ crushing Manufacturing 1.17
223 2195 Turpentine and rosin distilleries 3.85
224 2196 Tyres and Tubes Manufacturing 0.92
225 2197 Tyre Retreading and Resoling factories 1.6
226 2198 Umbrella Assembly factories 0.99
227 2199 Velvet Cloth Manufacturing 1.38
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228 2200 Vermicelli factories 0.74

229 2201 Weigh Bridges 0.89
230 2202 Weaving Mills 0.87
231 2203 Wheat Threshers 5.5
232 2204 Wood seasoning/treatment/ impregnation 0.93
233 2205 Wool cleaning and pressing factories 1.38
234 2206 Woollen Mills/Fur garments and accessories 1.09
235 2207 Yarn Processing 0.99
236 2208 Zip fasteners Manufacturing 1.53
237 2209 Contractors Plant and Machinery anywhere in India (at 0.96
specified locations)
238 2210 Electric Generation Stations - Others 0.61
239 2211 Textile Mills - Composite mills 1.65
240 2212 Automobile Filter Manufacturing 1.38
241 2216 Plastic Goods Manufacturing (excluding Foam Plastics)/II. 1.28
Using Plastic raw materials having calorific value of above
15000 btu/ib Polyethylene, Polypropylene, Polystyrene,
Polyalphamethylstyrene, Acrylonitrilebutadiene - styrene,
Polybutylene
242 2217 Electric Generation Stations - Thermal Power stations 0.43
243 2218 Electric Generation Stations - Solar Power stations 0.66
244 2219 Electric Generation Stations - Windmill 0.74
245 2221 Electric Generation Stations - Biomass Power Stations 0.75
246 2222 Engineering Workshop - Steel Plants 0.41
247 2224 Engineering Workshop - Pipe Extruding, Stamping, 0.4
Pressing, Forging Mills, Metal Smelting, Foundries,
Galvanising Work
248 2225 Engineering Workshop - Metal Extraction, Ore Processing 0.89
(other than Aluminium, Copper, Zinc), Plant processing
Raw Sand into Silica
249 2227 Engineering Workshop - Clock / Watch Manufacturing 1.93
250 2229 Multiplex Theatre Complexes 0.77
251 2230 Shopping Malls (other than Multiplexes) 0.55
252 2231 Disposable Diaper Manufacturing 1.38
253 3001 Analytical / Quality Control Laboratories 0.54
254 3002 Boiler House 0.45
255 3003 Dams 0.37
256 3004 Effluent /Sewage Treatment Plants 0.7
257 3005 Electric Sub-Stations, Loco Sheds 0.26
258 3006 Electric Transmission / Distribution Lines 0.15
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259 3007 Pipe lines (carrying water only) 0.4

260 3008 Pipe lines (others) 0.48
261 3009 Pump Houses (Water) 0.36
262 3010 Pump Houses (Others) 1.25
263 3011 Railway tracks 0.9
264 3012 Roads 0.55
265 3013 Water Treatment Plants / Water Tanks 0.14
266 3014 Wireless Transmitting Stations 0.52
267 3015 Compressor Houses - Compressors handling air, Inert Gas 0.8
and CO2
268 3016 Compressor Houses - Compressor (others) 2.39
269 3017 Boundary Walls - Made up of Combustible Material 1.78
270 3018 Boundary Walls - Others 0.78
271 3019 Electric Crematoriums 0.68
272 4001 Storage of Non-hazardous goods subject to warranty that 0.46
hazardous goods of Category I, II, III, Coir waste, Coir fibre
and Caddies are not stored therein. (Materials stored in
Godowns & Silos)
273 4002 Storage of Category I hazardous Goods subject to 0.98
warranty that goods listed in Category II, III, Coir waste,
Coir fibre and Caddies are not stored therein. (Materials
stored in Godowns & Silos)
274 4003 Storage of hazardous Goods listed in Category II subject to 2.16
warranty that goods listed in Category III, Coir waste, Coir
fibre and Caddies are not stored therein. (Materials stored
in Godowns & Silos)
275 4004 Storage of hazardous Goods listed in Category III subject 3.1
to warranty that Coir waste, Coir fibre and, Caddies are
not stored therein. (Materials stored in Godowns & Silos)
276 4005 Transporter's Godowns and Godowns of clearing and 0.72
forwarding agents. (Materials stored in Godowns & Silos)
277 4006 Storage of Coir Waste, Coir Fibre, Caddies (Materials 6.13
stored in Godowns & Silos)
278 4007 Cold Storage premises 1.07
279 4008 Gas Holders/ Bullets/spheres and storages for liquefied 2.25
gases except for Nitrogen, Carbon dioxide and inert gases
280 4009 Gas Holders/ Vessels for Nitrogen, Carbon dioxide and 1.02
inert gases
281 4010 Tanks containing liquids flashing at 32 degree C and below 1.41
282 4011 Tanks (others) 0.67
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283 4012 Storage of Non-hazardous goods subject to warranty that 2.26

hazardous goods of Category I, II, III, Coir waste, Coir fibre
and Caddies are not stored therein. (Materials stored in
Open)
284 4013 Storage of Category I hazardous Goods subject to 2.51
warranty that goods listed in Category II, III, Coir waste,
Coir fibre and Caddies are not stored therein. (Materials
stored in Open)
285 4014 Storage of hazardous Goods listed in Category II subject to 4.61
warranty that goods listed in Category III, Coir waste, Coir
fibre and Caddies are not stored therein. (Materials stored
in Open)
286 4015 Storage of hazardous Goods listed in Category III subject 5.58
to warranty that Coir waste, Coir fibre and, Caddies are
not stored therein. (Materials stored in Open)
287 4016 Transporter's Godowns and Godowns of clearing and 0.92
forwarding agents. (Materials stored in Open)
288 4017 Storage of Coir Waste, Coir Fibre, Caddies (Materials 9.88
stored in Open)
289 4018 Bus Terminus 3.67
290 4019 Vehicles stored in Open Including Tractors 2.33
291 4900 Silent Risk 0.3
292 2213 Lignite Handling System 0.77
293 2214 Nitro Cellulose Manufacturing - Others 9.27
294 2215 Pilot Plants To be rated as
per the
manufacturing
facility
295 2220 Nuclear Power Station 0.61
296 2223 Engineering Workshop Rolling Mill 0.32
297 2226 Engineering Workshop Ferro Plants 0.32
298 2228 Engineering Workshop Manufacturing of Diamonds 0.67
299 2232 Sports Goods Manufacturing 1.25