Download - New Fire Ppt
-
8/13/2019 New Fire Ppt
1/57
FIRE INSURANCE
By: SUNIT MATHUR
RO-1, NEW DELHI
-
8/13/2019 New Fire Ppt
2/57
OVERVIEW
No. of Sections : 8
No. of Perils ( In built ) : 12
No. of Exclusions : 13 No. of General Conditions: 15
No. of Add On Covers : 15+6
No. of Clauses : 11 ( A to K )
-
8/13/2019 New Fire Ppt
3/57
SECTIONS
SECTION I : GENERAL RULES & REGULATION.
SECTION II : POLICY WORDING
SECTION III : DWELLINGS, OFFICES ETC.
SECTION IV : INDUSTRIAL & MANU. RISKS
SECTION V: UTILITIES OUSIDE MANU. RISK
SECTION VI: STORAGE OUTSIDE MANU. RISK
SECTION VII: TANKS FARMS / GAS HOLDERSOUTSIDE MANU. RISK
SECTION VIII: ADD ON COVERS
-
8/13/2019 New Fire Ppt
4/57
COVERAGES
1. FIRE2. LIGHTENING3. EXPLOSION/ IMPLOSION4. AIRCRAFT DAMAGE5. RIOT, STRIKE & MALICIOUS DAMAGE.
6. STORM, CYCLONE, TYPHOON, TEMPEST, HURRICANE,TORNADO, FLOOD & INUNDATION,7. IMPACT DAMAGE8. SUBSIDENCE & LANDSLIDE INCLUDING ROCK SLIDE9. BURSTING & /OR OVERFLOWING OF WATER TANKS,
APPARATUS & PIPES10. MISSILE TESTING OPERATIONS11. LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATIONS12. BUSH FIRE
-
8/13/2019 New Fire Ppt
5/57
1. FIRE :Excluding (i) own fermentation, natural heating or
spontaneous combustion(ii) Its undergoing heating & drying process
(iii) Burning by order of Govt.
FIRE IN INSURANCE : Actual ignition under accidental circumstances
for insuredIgnition means burningpresenceof flames, thus loss by smoke, heating, charring
without burning is not considered fire The property should not be on fire
-
8/13/2019 New Fire Ppt
6/57
FIRE IN INSURACE POLICY : Fire lighted for definite purpose is not
considered Fire for Insurance unless broken itslimitslike sugar processing
No difference if fire comes to property or
property comes to the fire like unlightedgrate
( both the above cases fire breaks its limits &causes ignition or property breaks its properlimits & comes into contact with fire, there isan accidental loss by fire )
-
8/13/2019 New Fire Ppt
7/57
FIRE IN INSURACE POLICY :
Once there is a fire within the meaning of thepolicyother losses becomes payable like:
Smoke & heat
Scorching Falling Walls
Damage of Fire brigade water, chemical etc.
Damage to property removed from burningcaused by weather provided removal made for
LCM.
-
8/13/2019 New Fire Ppt
8/57
LIGHTNING ( AOG )
An electricity for cloudsLoss with or without
actual ignition covered3. EXPLOSION / IMPLOSION
Only domestic boilers are covered for
explosion / implosion ( for other perils thecommercial boilers can be covered )
4.AIRCRAFT DAMAGE
Damage by Aircraft or other aerial or spacedevices and articles dropping therefromexcept damage caused by pressure waves
-
8/13/2019 New Fire Ppt
9/57
. RIOT, STRIKE & MALICIOUS DAMAGE Only visible physical damage by external,
violent meansExcept
(i) Permanent or temporary dispossession bythe order of Govt.
(ii) Permanent or temporary dispossessionresulting from the unlawful occupation by anyperson
(iii) Burglary, housebreaking, theft ( whetheror not committed in course of disturbance ofpublic peace)
-
8/13/2019 New Fire Ppt
10/57
6. STROM, CYCLONE, FLOOD.ETC. (AOG)( Excluding resulting from Earthquake or other
convulsions of natureIf Earthquake if coveredthrough add on than this exclusion is not
applicable)
Storm: violent disturbance of atmosphere withthunder or strong wind or heavy rainfall
Tempest : A violent Storm
Cyclone & Hurricane : Storm of greater intensity
Flood : Escape of water from its normal confines (
except water from tanks or apparatus or pipe)
-
8/13/2019 New Fire Ppt
11/57
- Overflowing of lakes, rivers, canals, sea byhigh tides etc.
- Bursting of street water mains, overflowing
of sewage pipes
Inundation : Synonymous of Flood7. IMPACT DAMAGEDirect physical visible loss
by impact of rail / road vehicle or animal not
belonging to :
- Insured or occupier of the premises
- The employees of the insured
-
8/13/2019 New Fire Ppt
12/57
8. SUBSIDENCE & LANDSLIDE INCLUDING
ROCKSLIDE - EXCEPT
- Normal cracking, bedding down of new bldg.
- Settlement or movement of made up ground
- Coastal or river erosion
- Defective design or workmanship or use of
defective material
- Demolition, construction, alteration, repair,
excavation of the property
-
8/13/2019 New Fire Ppt
13/57
9. BURSTING & / OR OVERFLOWING OF WATERTANKS, APPARATUS & PIPES
- Largely applicable to cold regions wherebursting of pipes takes place
10. MISSILE TESTING OPERATIONS:
- Carried out by Defence Deptt., Govt. of India
11. LEAKAGE FROM AUTOMATIC SPRINKLERINSTALLATIONSEXCEPT
- Repair or alternation of the bldg.
- Repair, removal or extension of sprinkler
- Defects in construction known to insured
-
8/13/2019 New Fire Ppt
14/57
12. BUSH FIRE :Excluding loss of damage by Forest Fire
GENERAL EXCLUSIONS
1. EXCESS ( NOT FOR DWELLINGS ) W.E.F. POLICIES
ON OR AFTER 01.04.2010: - PER EVENT PER
INSURED
Policies having SI of Rs.10 Crores Per location
(i) For AOG perils : 5% of claim amount subject
to Minimum of Rs.10,000/-. Each & every loss
(ii) For other perils : Rs.10,000 each & every loss
-
8/13/2019 New Fire Ppt
15/57
Policies having SI above Rs.10 Crores Per location
(i) For AOG perils : 5% of claim amount subject to
Minimum of Rs.25,000/-. Each & every loss(ii) For other perils : 5% of claim amount subjectto Minimum of Rs.10,000/-. Each & every loss
2. War and kindred Perils
3. Radioactive Contamination4. Pollution or Contamination Except :
(i) Pollution or contamination caused by theinsured peril or,
(ii) The insured peril which did the loss is caused bythe pollution or contamination
-
8/13/2019 New Fire Ppt
16/57
5. Loss to any bullion, curios, work of art, antiqueexceeding Rs.10,000/-, stamps, coins, cash etc.
Unless expressly stated in the policy6. Stocks of cold storage due to temperature change
7. Loss to any electrical machine, apparatus, fittingby over-running, short circuiting, self heating,electricity leakage from whatever cause exclusion applicable for particular machine
8. (a ) Architects, Engineers fee in excess of 3% of
claim amount(b) Debris Removal expenses in excess of 1% of
claim amount
-
8/13/2019 New Fire Ppt
17/57
9. Any Consequential losslike profit, market etc.
10. Loss of spoilage due to retardation or
interruption of any process caused by insuredperils
11. Loss by theft during or after occurrence exceptas provided in RSMD ( burglary or theft due to
riots, strikes are covered under Fire Policy)12. Earthquake Damage
13. Loss to any property in the place other than
which stated in the policy except machinery orequipment temporarily removed for repairs,renovation etc. for not more than 60 days.
-
8/13/2019 New Fire Ppt
18/57
GENERAL CONDITIONS1. Misrepresentation, non-disclosure etc.
2. Bldg. Fall and displacement : ( part or whole)
(i) All Insurance under this policy cease on
expiry of 7 days from the date of such fall if
occurred other than insured peril.
( ii ) If Fall by insured perils the Co. should be
notified within 7 days for continuance of
insurance on revised rates, terms &conditions
-
8/13/2019 New Fire Ppt
19/57
3. Alternation :Policy becomes void unless notify to the Company
(i) If the Trade, Manu. Or occupation changes
(ii) If bldg. is unoccupied for more than 30 days
(iii) If interest passes from the insured except
automatically by will or law ( in case of death of
insured)
4. Marine Clause : If the same property is covered
under the Marine Policy the loss will notpayable in Fire Policy except any excess amount
over the marine policy
-
8/13/2019 New Fire Ppt
20/57
5. CANCELLATION : By either Partygiving 15 days
notice and refund of premium
6.DUTIES OF THE INSURED :
(i) For any claim give notice in writing and a claimstatement item wise within 15 days of loss at hisown expense without any profit
(ii) Details of all other insurances, if any
(iii) Co. not liable for loss after expiry of 12months from the date of loss unless claim issubject to pending action or arbitration .
(iv ) If claim is repudiated by the Co., & theinsured has not filed a suit within 12 months ofdate of repudiation, it is not recoverablethereafter
-
8/13/2019 New Fire Ppt
21/57
7. RIGHTS OF INSURER :After a loss the Co. without admitting liability can:
(i) Enter, take possession, examine, sorting and can
do salvaging operations
(ii) If the insured do not co-operate or hinders the
benefits of the Policy forfeits
(iii) The insured cannot abandon the property after
loss whether possessed by the Co. or not
8. FRAUD : If any fraudulent means used forclaiming, the benefits of policy forfeits.
-
8/13/2019 New Fire Ppt
22/57
9. OPTION OF THE INSURER:
(i) If Co. feels the claim amount is exaggerated
then has option of reinstate or replace thedamaged property subject to S.I.
(ii) If due to municipal regulations Co. cannot
reinstate then Co. will pay such amountrequisite to reinstate to its former condition.
10. CONDITION OF AVERAGE (
UNDERINSURANCE)11. CONTRIBUTION
-
8/13/2019 New Fire Ppt
23/57
12. SUBROGATION : Company take rights &remedies even before payment of claim
13. ARBITRATION ( only in case of quantum ofclaim, loss otherwise admitted under the Policy)
14. ALL NOTICE / CORRESPONDENCE MUST BE INWRITING
15. REINSTATEMENT OF SUM INSURED AFTER ALOSS :(i) By deducting pro-rata premium from the net claim
amount
(ii) If insured notify the Co. immediately after the loss fornot reinstating the SI, then the SI will be reduced by theamount of claim paid
-
8/13/2019 New Fire Ppt
24/57
S.NO. ADD ON COVER RATE APPLICABLE VALUE TO BE
INSURED
1. Architects, consulting Engineers fees
in excess of 3% of claim amount
Policy Rate Specified SI not
exceeding 7.5% ofclaim amount
2. Removal of Debris ( in excess of 1%
of Claim Amount)
Policy Rate Specified SI upto
maximum 10% of S.I.
3. (a) Deterioration of Stock in Cold
Storage by to change oftemperature due to power failure at
Power Station by insured perils
Policy Rate Sum Insured of the
Stocks
(a) Deterioration of Stock in Cold
Storage by to change of
temperature due to loss to
machinery at premises by insured
perils
Policy Rate Sum Insured of the
Stocks
4. Forest Fire Minimum 3.75%o Specified SI
-
8/13/2019 New Fire Ppt
25/57
5. Impact Damage due to Insureds
own Rail/road vehicle, lifts,
cranes
5% of Policy Rate Policy Sum Insured
6. Spontaneous Combustion
Category I
Category II
Category I : 0.20%0
Category I : 0.45%0
SI of relative
commodity
7. Omission to Insure additions,
alterations or extensions
Policy Rate 5% of SI of BMA
8. Earthquake ( Fire & Shock )Zone I
Zone II
Zone III
Zone IV
Zone I : 0.75%oZone II : 0.40%o
Zone III : 0.15%o
Zone IV: 0.075%o
Policy S .I. ( Dwellings,offices ratable under
Section III will be
charged as Zone IV
rate regardless the
Zone
9. Spoilage Damage Material Cover(i) Stocks in specified blocks
(ii) Machinery in specified blocks
(i) 5 times of policy rate(ii) 2.5 times of policy rate
(i) Value of stocks inspecified blocks
(ii) Value of M/A in
specified blocks
-
8/13/2019 New Fire Ppt
26/57
10. Leakage & Contaminationa. Where tanks located in insuredspremises
Only
leakage
a. 3.75%o
Leakage &
Contamination
a.7.5%o
Specified Sum
Insured
b. Where tanks are locatedelsewhere
b. 4.5%o b. 9.00%o
11. Temporary removal of Stocks 10% of Policy Rate Policy S.I.
12. Loss of Rent Clause ( For Owner of
Bldg.)
Policy Rate Specified SI
13. Addl. Expenses of rent for an
alternative accommodation ( For
Tenant )
Policy rate Specified SI
14. Start up expenses Policy rate Specified SI
15. Terrorism ( Only with RSMD ) Rates as per the Terrorism
Pool
Policy Sum
Insured
-
8/13/2019 New Fire Ppt
27/57
CLAUSES
A. AGREED BANK CLAUSE : To protect the interestof a banker or financer whose interest is in theinsured property
B. CONTRACT PRICE INSURANCE CLAUSE
For imported goods only where the prices arefixed as per contract little deviation ofindemnity
C. DESIGNATION OF PROPERTY CLAUSE
Co. accept the designation under which theproperty entered in the insuredsbook
-
8/13/2019 New Fire Ppt
28/57
D. REINSTATEMENT VALUE POLICIES Only for Bldg., P & M, FFF & not to stocks
Reinstatement must commence and completewithin 12 months of date of loss
Underinsurance will also apply
If need extension of time notify the Company
If insured fail to intimate the intention ofreinstatement within 6 months than the thisclause will not apply
If insured unwilling to replace the property thanon market value basis
Reinstatement can carry out at another site also
-
8/13/2019 New Fire Ppt
29/57
E. LOCAL AUTHORITY CLAUSE
Reinstatement Value policies can be extendedfor this clause
Some extra expenses can be allowed to
comply the local by laws but subject to S.I.
F. ESCALATION CLAUSE
Maximum 10% if allowed ( IGT )
50% of full rate on selected percentage
Only for Bldg., P & M & not for stocks & FFF
-
8/13/2019 New Fire Ppt
30/57
G. ARCHITECTS FEE ( upto 3% of claim amount)H. REMOVAL OF DEBRIS ( upto 1% of claim amt.)
I. FLOATER CLAUSE
One, more or all locations as specified
Should have good internal audit & account
Change of location must be intimated
J. DECLARATION CLAUSE
Basis of declaration (i) Average of value on each day ofthe month or (ii) Highest Value during the month
Declaration must be latest by the last day of nextmonth
-
8/13/2019 New Fire Ppt
31/57
J. DECLARATION CLAUSE On expiry subject to adjustment by taking
average of 12 declarationsMaximum refund
35% only
Basis of valuationMarket Value basis
If stock is covered by any other insurance than
this policy will be used only for the excess
amount, if any
K. VOLUNTARY DEDUCTIBLE CLAUSE
-
8/13/2019 New Fire Ppt
32/57
GENERAL RULES AND REGULATIONS
All India Fire Tariff effective from 31.03.2001
Detariff from 01.01.2007 ( IGT from 01.01.2008 )
Only SFSP with permitted add on covers is allowed
Only land based properties are allowed
Policy covering Bldg. & Contents shall show all block-wise separate amount on (i) Bldg. (ii) Machinery &Accessories (iii) Stock & Stock in Process & (iv)Furniture & other contents
Deletion of STFI & RSMD is allowed
Rates shown are minimum rates & higher rates can becharged
-
8/13/2019 New Fire Ppt
33/57
Valued Policies : For property whose marketvalue cannot be ascertained like works of art,obsolete machinery etc. subject to valuationcertificate
Long Term Policies : No policy exceeding 12months can be issued except Dwellings
Mid Term Cover: Generally not permissible to
grant STFI & RSMD perils mid term. If allowedwith certain conditions :(i) Must receive specific advice from insuredwith payment in Cash or draft. No adjustment
from existing CD or Bank Guarantee(ii) Should be for entire property coveringentire interest
-
8/13/2019 New Fire Ppt
34/57
Cover shall commence after 15 days of receipt
of premium Premium rates as under shall be on Short
Period Scale
Mid-term
Inclusion
of
SECTION
III
SECTION VI SECTION
IV, V &
VIIMaterial in
Godown
Material in
Open
STFI 0.20%o 0.35%o 2.00%o 0.35%o
RSMD 0.15%o 0.15%o 0.15%o 0.15%o
-
8/13/2019 New Fire Ppt
35/57
Payment of Premium : Shall be paid in full &
no installment is allowed not permissible to
split SI of same property in various policies totake advantage of deferred payments.However various policies of stock can beissued where necessitate.
Minimum Premium : Minimum Premium shallbe Rs.200. ( IGT )
-
8/13/2019 New Fire Ppt
36/57
Partial Insurancea. Not to issue certain part of Bldg. However
Plinth & Foundation or only foundation can beexcluded
b. Not to issue covering specified machinery (
except boilers ) or part of the machineryc. Where portions of a bldg. or machinery isunder different ownership, in such cases it ispermissible for each owner to insure his own
portion but full extent of his interest.
SHORT PERIOD RATES
-
8/13/2019 New Fire Ppt
37/57
Not Exceeding 15 days 10% of Annual Rates
Not Exceeding 1 Month 15% of Annual Rates
Not Exceeding 2 Months 30% of Annual RatesNot Exceeding 3 Months 40% of Annual Rates
Not Exceeding 4 Months 50% of Annual Rates
Not Exceeding 5 Months 60% of Annual RatesNot Exceeding 6 Months 70% of Annual Rates
Not Exceeding 7 Months 75% of Annual Rates
Not Exceeding 8 Months 80% of Annual Rates
Not Exceeding 9 Months 85% of Annual Rates
Exceeding 9 Months The Full Annual Rates
Extension of Short Period Policy shall not be permitted
-
8/13/2019 New Fire Ppt
38/57
Rules for CancellationAt the Option of Insured : (i) Retention of SP Rates
(ii) During Currency if the policy replaced by sameCo. by new annual policy for same property thenPro-rata refund is allowed
(iii) For the SI not replaced refund after retaining
premium on SP Rates for such S.I.(iv) In Case of S.P. policies premium retained as per
S.P. Rates
(v) In case Policy cancelled by Govt. Orders or on
completion of a Bldg. in course of construction orwhere bldg. is demolished, pro-rata refund beallowed
At the Option of Insurer : Pro-rata refund is allowed
-
8/13/2019 New Fire Ppt
39/57
Mid Term Revision in S.I.Increase in S.I. : On Pro-rata Basis
Decrease in S.I.: On Short Period Scale
Escalation Clause
a. Only upto 10% of the S.I.
b. 50% of Full Rate to be charged on selected%age
c. Only for Bldg., Machinery & Accessories & not for
stocksd. Average condition will also apply
-
8/13/2019 New Fire Ppt
40/57
Floater Policy : Can be issued for stocks at
various locations under one Sum Insured (
unspecified locations are not allowed )- Rate Shall be highest rate applicable at anylocation with 10% loading- In case stock in process block is covered
under Floater Policy & the rate of processblock is higher than the storage rate, theprocess block rate plus 10% loading shall apply- If stock situated within godown / process
block in the same compound are coveredunder floater policy, no floater extra ischargeable
-
8/13/2019 New Fire Ppt
41/57
Declaration Policies : For frequent fluctuations in
Stock / Stock Values- Minimum SI shall be Rs. 1 Crore in one or more
locations & the SI shall not be less than 25 lacs inatleast one of these locations. Declared valueshould approximate to this figure at sometimeduring the policy year
- Monthly declaration based on (a) average of thevalues at risk on each day of month or (b) highestvalue at risk during the month. If declaration notreceived within specified time the full SI shall bedeemed to have been declared
- Reduction of SI is not allowed- Refund of premium on adjustment shall notexceed 35% of the total premium
-
8/13/2019 New Fire Ppt
42/57
- Basis of Valuation will be Market Value
- Not Permissible for (a) on Short Period Basis(b) Stocks undergoing process Stocks atRailway sidings
- If at the time of loss it is found that the lastdecl. previous to the loss is less than the amt.ought to have been declared, the claim amt.
shall be reduced in such proportion as theamt. of said last decl. bears to the amt. thatought to have been declared.
-
8/13/2019 New Fire Ppt
43/57
Floater Declaration Policies :- Minimum S.I should be 2 Crores
- Both Floater & Declaration policy rules willapply
- Minimum retention of premium shall be 80%
Rating of Multiple Occupancy Industrial Estate
- Shall be rated perse
- If the Entire Bldg. of Industrial Estate is
insured under one S.I. a rate of 1.80%o becharged
- The Contents will be rated perse
-
8/13/2019 New Fire Ppt
44/57
Silent Risk : Under Section IV & V Only
- Factories where no manufacturing & Storagework is carried out for continuously 30 ormore days
- Retention of premium shall be based onappropriate storage rate or silent risk rate ofRs. 1.00%o whichever is higher
- The Silent risk rates are not applicable if risk issilent due to a claim / loss.
-
8/13/2019 New Fire Ppt
45/57
VOLUNTARY DEDUCTIBLES both SFSP plus add ons
Deductible Amount (Rs. In Lacs) Discount
(%)AOG Perils5% of claim amt. subject to
minimum to Rs.
Other Perils
10 Lakhs 5 Lakhs 4
20 Lakhs 10 Lakhs 8
30 Lakhs 15 Lakhs 10
60 Lakhs 30 Lakhs 12
100 Lakhs 40 Lakhs 14
>100 Lakhs >50 Lakhs Refer to
HO
-
8/13/2019 New Fire Ppt
46/57
SECTION III
Dwellings, Officers, Hotels, Shops Etc. Located outside thecompound of a Factory
Long Terms Policy for Dwellings only
- Minimum for 3 yrs.
- Refund : Subject of Circular dt.03.03.2009 i.e.- (i) If cancelled within 3 yearsretain premium with normal
rates with no discount
- (ii) If cancelled after 3 years rework premium as perdiscounted slabs For fraction of year, rounded of to next
higher yearSubject to retention of minimum premium- No inclusion of perils mid-term
- Method : A
- Method : B ( Discount upto 50 % for 10 yrs. & above)
-
8/13/2019 New Fire Ppt
47/57
SECTION IV
INDUSTRIAL / MANUFACTURING RISK- One rate for entire property in one compound i.e.
process area, storage, office, utilities etc.- If more than one product is manufactured in the
same block the highest rate will be applicable- If 2 or more factories are there or independent
products are manufactured in the samecompound the manu. Block shall be rated perse if located detached. Misc. Blocks / utilities /
godowns / tank farms etc. in such cases shallcarry lowest rate of all such manu. Blocks.
- Dwelling located inside the factory may be ratedper se
-
8/13/2019 New Fire Ppt
48/57
SECTION V
Utilities outside the Manufacturing Risks
- Rates given for various utilities
-
8/13/2019 New Fire Ppt
49/57
SECTION VI
Storage outside Indl./ Manu. Risk- Two RatesWithin Godown & Open
- 4 CategoriesNH, I, II, & III
- Rates will apply for bldg./ storage area and stocks
- Operation like packing/selecting/mending /stitchingetc. are covered if do not materially alter nature of risk
- Presence of hazardous goods of higher category notexceeding 5% to total S.I. are also covered
- Utilities / Misc. Blocks shall be rated Re. 1.00%o- Open Storage of 2% of S.I. is allowed when the risk is
rated within godown
-
8/13/2019 New Fire Ppt
50/57
SECTION VII
Tanks Farms / Gas Holders outside the Factory All tanks in same area shall carry highest rate
- Tanks of hazardous chemicals / liquid are covered
- Utilities & Misc. Blocks shall be rated atRe.1.00%o
- Associated properties like pumping station,compressor house, blower house etc. will rated atpar with Gas holder
-
8/13/2019 New Fire Ppt
51/57
CLAIMS
While Deputing Surveyor the nature of subjectmatter involved should be kept in mind andappropriate Surveyor should be appointed
A Company official should visit to site as early as
possible If there is a doubt in admissibility of claim an
investigator should also be appointed
For disposal of salvage the general guidelines laid
down should be followed but salvage disposalbe undertaken on priority basis because thesalvage due to Fire deteriorate faster.
-
8/13/2019 New Fire Ppt
52/57
Processing of Claimsdocuments required
A. Common
1. Claim Intimation
2. Policy
3. Claim Form
4. Survey ReportB. Specific
In case of Fire & Explosion : (i) FIR & Fire BrigadeReport
In case of AOG:(i) Meteorological Report or inabsence (a) Local Bodies certificate or (b)cutting of newspaper
-
8/13/2019 New Fire Ppt
53/57
In case of RSMD & Impact damage : PoliceReport
DOS due to Power Failure :
(i) Log Book Maintained by the insured for
maintaining temperature
(ii) Certificate from Electricity Deptt.
In Addition to the above the U/W may insist anyother document / evidence to establish loss
NON STANDARD / COMPROMISE
-
8/13/2019 New Fire Ppt
54/57
NON-STANDARD / COMPROMISE
When breach is not material or of tech. nature
or beyond the control or knowledge of insured
:
(i) Policy is rectified after collecting addl.
Premium if due
(ii) A deduction is made from assessed amt.
equivalent to 3 years premiumwhich wouldhave come had correct information available
-
8/13/2019 New Fire Ppt
55/57
If breach is material to loss or insured or his
agent contributed to loss and has not
consciously committed the breach :
- Payment can be considered on merits of each
case upto a maximum of 75% of the Assessed
Loss
STEPS INVOLVED IN LOSS ASSESSMENT
-
8/13/2019 New Fire Ppt
56/57
STEPS INVOLVED IN LOSS ASSESSMENT
1. Gross Loss Assessed
Less : Depreciation = A
2. Less : Salvage = B
3. Less : Under Insurance = C
4. Less : Excess = D
5. Net Claim Payable = A-B-C-D
-
8/13/2019 New Fire Ppt
57/57
THANK YOU