The New India Assurance Company Ltd

THE NEW INDIA ASSURANCE COMPANY LTD.

DO 112700,22, 2nd Floor, Mittal Chambers, Nariman Point,

Mumbai – 400 021

Tel.: 022 2202 0577,2202 0308,2202 0714 Fax: 022 2202 0608

Email: ;

NIA/112700/NCDEX /2008-930.10.07

M/S ……………………………………………………

…………………………………………………………….

……………………………………………………………..

Dear Sir,

Re : Renewal of NCDEX Broker Members’ Indemnity Insurance Policy expiring on 20.11.06

New horizons of Commodity Trading are being explored due to the booming Economy and newer trading concepts. Commodity & Derivatives Market is gaining new and new heights every day. We wish all the prosperity for you and for your Clients.

In addition to the Basic Cover, this year, we are offering Branches Cover and two Add-On Covers (on extra Premium) in lines of other Exchanges’ Policy to meet the demand of the market.

The Major modifications will be as under -

Branch Cover - In view of the booming market, so many Members have opened many new Branches and in turn, Risk Exposure has increased multifold. It has necessitated charging of additional premium. So Branches will be covered on payment of extra premium only. If no extra premium is paid, no branch will be covered. This Premium will be charged as per applicable Slab based upon the No. of Branches. Once opted, this Cover will be on all or none basis. List of the Branches will be supplied by the Client to have them covered in the Policy. Slab wise rates, liability limit and a specific condition for minimum Sum Insured Option linked with No. of Branches (risk exposure) are given in the Attached Premium rating Chart. Policy Excess will be applicable.

Add-On Covers - As per the Market demand, we have designed two optional Add-On Covers on payment of Extra Premium. These are –

2(a) Add-On Cover for Error & Omission in Proprietary Trade –

1. Sum Insured under this cover will be restricted to the 20% of the basic Indemnity limit chosen by the insured or Rs. 3 Lac whichever is higher.

2. Excess for this cover should be first Rs. 25,000 or 25% of the total claim value whichever is higher.

3. This cover should be given in respect of error & omission for punching in rates only & not in the quantity.

The rates will be 25% of the basic premium for the basic cover opted without any re-instatement.

2(b) Add-On Cover for Error & Omission by Intermediaries -

Error & Omission cover for Intermediaries (Sub Brokers/ Franchisee/approved Users) is offered in the line of NSE/BSE/MCX. Error & Omission of such a person (only in punching rates and not in quantity) can be covered as an Add-On Cover at payment of Extra Premium as given in the rate Chart subject to following conditions -

The indemnity limit Per Intermediary will be limited to the 10% of the Policy Indemnity limit chosen by the insured initially without any re-instatement.

2.The minimum excess for this sub-section will be Rs 25,000 or 25% of the admissible claim amount whichever is higher for each & every claim. However if the higher Policy excess is applicable in terms of the selection of the Sum Insured, each & every claim under this add-on cover will be subject to that higher excess. - 2

- 2 -

This add-on cover will be provided on all or none basis i.e if it is opted, all of the intermediaries are to be covered. If any new addition is to be made during the year, the Insured will have to declare this addition and will pay specified % of the basic premium paid initially applicable in the next slab as per the No. of Intermediaries if the No. of the Intermediaries exceed the maximum No. of the allowed Intermediaries of the existing Slab with applicable service tax to get the new intermediary covered during the policy period. Cover for such inclusion will be effective only from the date of the receipt of the additional premium.

It will be mandatory for the Insured to supply the list of the intermediaries with their names, addresses and location as recorded with NCDEX as NCDEX guidelines and/or Rules and regulations, from the inception of the Policy and update the same during the Policy Period by paying additional premium if required, as referred above in 3.

All other Coverage, Terms & Conditions will remain the same as per our previous year Policy.

We are attaching herewith the Proposal cum Questionnaire Form, which is to be properly filled. We have also attached the ‘Premium Rating Chart’ for calculating Premium. For sake of clarity we have provided a table at the end of the Proposal Form. Please note, that premium is to be taken and calculated

on Net Basis first for all Sections and Add-On Cover (if opted) and Service Tax will be calculated on the total of all the net Premium in the sequence provided in the table.

If you have any query, please feel free to contact us at the Following Telephone No.

022 2202 0577,2202 0308,2202 0714, Mobile No. 93239 70275

to the undersigned or Mr. Deepak Pathare, Administrative Officer. You May also contact us on our

e-mail address – OR

Please send us the duly filled and signed Proposal Form along with the Draft at the following address directly –

THE NEW INDIA ASSURANCE COMPANY LTD.

DO 112700,22, 2nd Floor, Mittal Chambers, Nariman Point,

Mumbai – 400 021(New Address)

Cheques payable at par will also be accepted. Up Country Cheques will not be accepted at all.

Thanking You,

Yours Faithfully

(Dr. V W Maitra)

SR.DIVISIONAL MANAGER

THE NEW INDIA ASSURANCE COMPANY LTD.

DO 112700,22, 2nd Floor, Mittal Chambers, Nariman Point,

Mumbai – 400 021(New Address)

Tel.: 022 2202 0577,2202 0308,2202 0714 Fax: 022 2202 0608

Email: ;

NCDEX Broker Member’s Indemnity Insurance Policy

Proposal Cum Questionnaire Form

POLICY PERIOD 2006-2007

1. / Name of the Broker Member
2. / Postal Address
3. / Telephone No. and Fax No.
4. / Contact person Name
Direct Telephone/Mobile No.
E-mail I.D. No.
5. / NCDEX Code
6. / Basic Indemnity Limit (Basic Sum Insured) required for 2006-2007 / Rs.
7. / Branches Cover / Are you opting for this Cover – Yes / No
If yes, Number of Branches . ……………
(Address List is to be attached)
No Branch will be covered if this extension is not opted.
Please note that the Cover is optional and the additional Premium based upon the No. of Branches will be charged as per table given below. Please also note that minimum Basic Sum Insured to be opted under the Policy depends upon the No. of Branches (risk exposure) as under –
Slab as per No of Branches / Additional Premium / Minimum Sum Insured
1-10 / 10 % of the Basic Premium / As per Insured’s Option
11-25 / 15 % of the Basic Premium / Minimum 50 Lac
26-50 / 20 % of the Basic Premium / Minimum 1Crore
51-100 / 25 % of the Basic Premium / Minimum 2 Crore
101-250 / 50 % of the Basic Premium / Minimum 3 Crore
250-500 / 75 % of the Basic Premium / Minimum 4 Crore
501 and above / 100 % of the Basic Premium / Minimum 5 Crore
8(a) / Add On Cover For Proprietary Trade (Error & Omission)(Optional at Extra Premium) / Are you opting for this Cover – Yes / No
Premium for this cover is 25% of Basic Premium + 12.24% Service Tax
8(b) / Add On Cover For Intermediary Cover (Error & Omission) (For Authorised Users / Sub Brokers/Franchisee) / Are you Opting for this cover - Yes / No
If Yes,
Please give details as under –
No. of Sub Brokers : …………..
No. of Franchisees : …………..
No. of Authorized Persons : …………..
Total No. : …………..
PLEASE ATTACH A detailed List of all Sub Brokers/ Franchisees/ Authorized Persons as registered with NCDEX along with their name and address.
Premium for this cover is as given in the Rate Chart- + 12.24% Service tax
9. / Previous Year Policy No. / If of New India Assurance 112700/46/05/
If previous Policy was with other Insurer, please give that policy No. …………………………………………

I/We have noted and agreed that

-The Sum Insured under ‘Branch Coverage’ per Branch will remain restricted to the 25% of the Basic Indemnity Limit Opted under the Policy. - 2

-2 -

-The Sum Insured under Add-On ‘Intermediaries Coverage’ per Intermediary will remain restricted to the 10% of the Basic Indemnity Limit Opted under the Policy.

-Not withstanding other restrictions mentioned hereinabove, The liability of the Insurer shall remain limited only up to the Basic Indemnity Limit (Basic Sum Insured) initially opted under the Policy and endorsed upon it later on, on payment of additional premium; for all payable claims including all sections/heads of the Policy and endorsements thereon; together.

Declaration

I/We will declare all new additions and/or alterations in the number of Branches and/or Intermediaries to the Insurer in writing as and when such changes occur, but not later than 7 days from such change and undertake to pay the requisite premium including any hike in slab occasioned by crossing the threshold number of Branches and/or Intermediaries with such Intimation.

I/We hereby declare that the statements made/information furnished by me/us in the Proposal cum Questionnaire Form are true to the best of my/our knowledge and belief and I/We agree that this declaration shall form the basis of the Insurance Contract between me/us and The Oriental Insurance Co. Ltd. All further additions & alterations in the Risk proposed will be informed to the Insurance Co. immediately.

Date :

Place :Signature of the Broker Member

(With Seal/Stamp)

Insurance Broker
Detail / Sum Insured Rs. / Rate/Slab / Net Premium
1. / Basic Cover
2. / Branches / No. / % of Basic Prem.
3. / Add–On a). Proprietary Trade / 25% of Basic Premium
Add-On b) Intermediaries / No. / ……..% As per Rate Chart
Sub Total
S. Tax @ 12.24%
Total Payable

Encl :

1. DD / Cheque No. …………… Dated …………… Amount Rs. ………………

Bank …………………………………………………………………………………………………………….

2. ……………………………………………………………………………………………………………………..

THE NEW INDIA ASSURANCE COMPANY LTD.

DO 112700, 22, 2nd Floor, Mittal Chambers, Nariman Point,

Mumbai – 400 021(New Address)

Tel.: 022 2202 0577, 2202 0308, 2202 0714 Fax: 022 2202 0608

Email: ;

NCDEX Broker Members’ Indemnity Insurance Policy

Premium Rating Chart (Policy Period 2006-2007)

1. Basic Premium Rates

Basic Premium Rates depends upon Basic Indemnity Limit (Basic Sum Insured) opted by the Proposer / Insured. If Branch Cover is opted, Basic Sum Insured will be linked with the No. of Branches. Premium will be as per the following table -

SN / Basic Indemnity Limit
(Basic Sum Insured) / Basic
Premium Rs. / Excess
1 / Rs. 5 Lac / 7,500 / 2% of the Claim Amount Subject to Minimum of Rs. 25,000
2 / Rs. 10 Lac / 14,000
3 / Rs. 15 Lac / 19,500
4 / Rs. 20 Lac / 24,000
5 / Rs. 25 Lac / 27,500
6 / Rs. 50 Lac / 50,000 / Same subject to minimum Rs. 50,000
7 / Rs. 100 Lac / 1,00,000 / 2% of the Claim Amount Subject to Minimum of Rs. 1,00,000
8 / Rs. 200 Lac / 2,00,000

Note :1. Service Tax @ 12.24% is applicable Extra on Basic Premium.

2. If Basic Sum Insured is required above Rs. 200 Lac, a specific request will have to be made.

2. Cover For Branches

Please note that the Cover is optional and the additional Premium based upon the No. of Branches (as per increasing Risk Exposure) will be charged as per table given below -

Slab as per No of Branches / Additional Premium / Minimum Sum Insured
1-10 / 10 % of the Basic Premium / As per Insured’s Option
11-25 / 15 % of the Basic Premium / Minimum 50 Lac
26-50 / 20 % of the Basic Premium / Minimum 1Crore
51-100 / 25 % of the Basic Premium / Minimum 2 Crore
101-250 / 50 % of the Basic Premium / Minimum 3 Crore
250-500 / 75 % of the Basic Premium / Minimum 4 Crore
501 and above / 100 % of the Basic Premium / Minimum 5 Crore

Please also note that the Maximum Liability per Branch is limited to the 25% of the Basic Sum Insured under the Policy.

3. Add-On Covers

(a) Add-On Cover for Proprietary Trade (Error & omission)

Rates will be 25% of the payable basic Premium (related to No. of Branches if Branch Cover is opted) plus 12.24% Service Tax. Maximum Liability is limited to 20% of the Basic Sum Insured under the Policy This cover will be given in respect of error & omission for punching in rates only & not in the quantity.

(b) Add-On Cover for Intermediaries (Error & omission)

Maximum Liability per intermediary is limited to 10% of the Basic Sum Insured under the Policy. This cover will be given in respect of error & omission for punching in rates only & not in the quantity. Premium rates will be as under –

No. of Approved User / Extra Premium @ % of Basic Premium paid for Basic Cover / No. of Approved User / Extra Premium @ % of Basic Premium paid for Basic Cover
1 to 10 / 10% / 101 to 150 / 40%
11 to 25 / 15% / 151 to 200 / 50%
26 to 50 / 20% / 201 to 300 / 75%
51 to 75 / 25% / 301 to 500 / 100%
76 to 100 / 30% / 501 & More / 150%