Fire Insurance Sai

8/3/2019 Fire Insurance Sai

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FIRE INSURANCE

FIRE INSURANCE

SUBMITTED BY-V.ALPESH(1103013)

SAI SOUMYA(1103033)SHRAVANI KAR(1103041)

UPASANA SAHU(1103055)VAIJANTA VAGHMAREY(1103056)

SUBMITTED BY-V.ALPESH(1103013)

SAI SOUMYA(1103033)SHRAVANI KAR(1103041)

UPASANA SAHU(1103055)VAIJANTA VAGHMAREY(1103056)

2/21/2012

2/21/2012 1

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What is fire insurance

What is fire insurance

A fire insurance policy involves an insurancecompany agreeing to pay a certain amountequivalent to the estimated loss caused by

fire to the insured, within the time specifiedin the contract. The indemnity is subject tochange depending upon the policy. Oneshould confirm with the insurer about the

types of risks covered, since one cannotinsure the property against all types of risksof fire.

A fire insurance policy involves an insurancecompany agreeing to pay a certain amountequivalent to the estimated loss caused by

fire to the insured, within the time specifiedin the contract. The indemnity is subject tochange depending upon the policy. Oneshould confirm with the insurer about the

types of risks covered, since one cannotinsure the property against all types of risksof fire.

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Need of fire insurance

Need of fire insurance

Fire insurance is important because a disaster canoccur at any time. There could be many factors

behind a fire, for example arson, natural elements,faulty wiring, etc. Some facts that stress the

importance of fire insurance include: Fire contributes to the maximum number of

deaths occurring in America due to naturaldisasters.

Eight out of ten fire deaths take place at home. Aresidential fire takes place after every 77 seconds.The major reason for a residential fire isunattended cooking.

Fire insurance is important because a disaster canoccur at any time. There could be many factors

behind a fire, for example arson, natural elements,faulty wiring, etc. Some facts that stress the

importance of fire insurance include: Fire contributes to the maximum number of

deaths occurring in America due to naturaldisasters.

Eight out of ten fire deaths take place at home. Aresidential fire takes place after every 77 seconds.The major reason for a residential fire isunattended cooking.

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Insurable property

Insurable property

Buildings Plant and Machinery & Accessories Contents Stocks in Trade Stocks held in Trust or Commission Stocks-Raw materials, Stock in

process, Finished Goods Compound wall Stocks/ Property in Go down/ Open

Buildings Plant and Machinery & Accessories Contents Stocks in Trade Stocks held in Trust or Commission Stocks-Raw materials, Stock in

process, Finished Goods Compound wall Stocks/ Property in Go down/ Open

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Who can take Fire Policy?

Who can take Fire Policy?

Owners

Financiers-Banks, lenders

Lessees

Bailees

Policy in Joint Names is allowed

Owners

Financiers-Banks, lenders

Lessees

Bailees

Policy in Joint Names is allowed

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Standard fire and special

perils(SFSP) Policycovers the policyagainst:

Standard fire and special

perils(SFSP) Policycovers the policyagainst:

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FireFire LIGHTENING

EXPLOSION/

IMPLOSION

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RSMD ( Riot, Strike, Malicious damage)RSMD ( Riot, Strike, Malicious damage)

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STFI ( Strom,

Tempest,

Flood,Inundation )

STFI ( Strom,

Tempest,

Flood,Inundation )

AIRCRAFT DAMAGE

MISSILE TESTING

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* Bursting and / or

overflowing of

water tanks,

apparatus and

pipes

* Leakage from

Automatic

Sprinklers

Installations

* Bursting and / or

overflowing of

water tanks,

apparatus and

pipes

* Leakage from

Automatic

Sprinklers

Installations1010


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General ExclusionsGeneral Exclusions

War & nuclear Risks/ perils

Pollution or Contamination except caused byInsured peril operation.

Bullion, Unset precious stones, Curious, worksof Art > Rs10,000, Stamps, Plans, Money,Cheques, Business Books, Computer Systemrecords, Explosives etc unless specifically insuredin the policy.

Cold storage stocks due to change in Temperature.

War & nuclear Risks/ perils

Pollution or Contamination except caused byInsured peril operation.

Bullion, Unset precious stones, Curious, worksof Art > Rs10,000, Stamps, Plans, Money,Cheques, Business Books, Computer Systemrecords, Explosives etc unless specifically insuredin the policy.

Cold storage stocks due to change in Temperature.

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Electrical Risks for Electrical Machines,

apparatus/ Fittings etc where suchmachine is the originating source ofelectrical Risks( including Electrical surges

from Lightning) Architects, Surveyors & Consulting

Engineers Fees in excess of 3% and DebrisRemoval expenses in excess of 1% ofclaim amount.

Earthquake

Electrical Risks for Electrical Machines,

apparatus/ Fittings etc where suchmachine is the originating source ofelectrical Risks( including Electrical surges

from Lightning) Architects, Surveyors & Consulting

Engineers Fees in excess of 3% and DebrisRemoval expenses in excess of 1% ofclaim amount.

Earthquake

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Terrorism

Spoilage Material Damage

Removal of Property to any non-

insured locations(Temporary Removalof Machinery for repairs held covered upto 60 days only)

Theft during or after occurrence of anyinsured peril.

Terrorism

Spoilage Material Damage

Removal of Property to any non-

insured locations(Temporary Removalof Machinery for repairs held covered upto 60 days only)

Theft during or after occurrence of anyinsured peril.

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Peril related ExclusionsPeril related Exclusions

Fire--- Property damage by its own fermentation, natural

heating, or spontaneous combustion.

--- Property damage by its undergoing heating or

drying process

--- Property burninng by order of Public Authority

Explosion/ Implosion

--- To Non- domestic Boilers/ Economisers or itscontents by their own explosion/ Implosion

--- Caused by Centrifugal forces

Fire--- Property damage by its own fermentation, natural

heating, or spontaneous combustion.

--- Property damage by its undergoing heating or

drying process

--- Property burninng by order of Public Authority

Explosion/ Implosion

--- To Non- domestic Boilers/ Economisers or itscontents by their own explosion/ Implosion

--- Caused by Centrifugal forces

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Aircraft Damage-- Damage Caused by pressure waves

RSMD-- Damage Caused by Acts of Terrorism

Impact Damage-- Caused by Insured Own Vehicles/

Animals SLR

-- Normal Cracking, Settlement of NewStructures

Bush Fire-- Destruction byForest Fire

Aircraft Damage-- Damage Caused by pressure waves

RSMD-- Damage Caused by Acts of Terrorism

Impact Damage-- Caused by Insured Own Vehicles/

Animals SLR

-- Normal Cracking, Settlement of NewStructures

Bush Fire-- Destruction byForest Fire

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General ConditionsGeneral Conditions

There are 15 conditions in Fire Policy

1. Mis-description/ Non Disclosure Condition

2. Change of Trade/ Manufacture/ Occupancy increasingthe Risk or premises left unoccupied for more than 30days or property transferred to others- such materialchanges make policy in operative at once.

There are 15 conditions in Fire Policy

1. Mis-description/ Non Disclosure Condition

2. Change of Trade/ Manufacture/ Occupancy increasingthe Risk or premises left unoccupied for more than 30days or property transferred to others- such materialchanges make policy in operative at once.

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4. Duties of Insured-- Immediate notification of Loss-- Claim form + Submission of other Details in 15days time

-- Submission of other Insurance details-- 12 months time limit for claim settlement-- Time bar for Suits- 12 months after disclaimer ofclaim

4. Duties of Insured-- Immediate notification of Loss-- Claim form + Submission of other Details in 15days time

-- Submission of other Insurance details-- 12 months time limit for claim settlement-- Time bar for Suits- 12 months after disclaimer ofclaim

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5. Right of Insurer-- to enter & take possession of Building or

Premises-- remove, sort, arrange or salvage affected property

-- for non-cooperation by Insured , claim can beforfeited.

6. Fraud

7. Option to Insurer to Reinstate/ Replace/Repair/ or pay amount to Insured

8. All Notices and Communication to Insurermust be in writing.

5. Right of Insurer-- to enter & take possession of Building or

Premises-- remove, sort, arrange or salvage affected property

-- for non-cooperation by Insured , claim can beforfeited.

6. Fraud

7. Option to Insurer to Reinstate/ Replace/Repair/ or pay amount to Insured

8. All Notices and Communication to Insurermust be in writing.

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Add- On CoversAdd- On Covers

1. Architects, Surveyors & Consulting Engineers Fees etc

-- in excess of 3%, for a higher limit selected, up to7.5% claim amount.

2. Debris Removal expenses

-- in excess of 1% of claim amount, for a higher limitselected, up to 10% of Total SI.

3. Deterioration of Stocks in Cold Storage premises

1. Architects, Surveyors & Consulting Engineers Fees etc

-- in excess of 3%, for a higher limit selected, up to7.5% claim amount.

2. Debris Removal expenses

-- in excess of 1% of claim amount, for a higher limitselected, up to 10% of Total SI.

3. Deterioration of Stocks in Cold Storage premises

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6. Forest Fire

7. Impact damage by Insureds Own Rail/ Road

vehicles, Forklifts, Cranes etc8. Earthquake

9. Spoilage material Damage

10. Temporary Removal of Stocks

New Add- On Covers (w.e.f 01/04/2010)

1. House Breaking cover2. Electrical Risks for Electrical Installations

6. Forest Fire

7. Impact damage by Insureds Own Rail/ Road

vehicles, Forklifts, Cranes etc8. Earthquake

9. Spoilage material Damage

10. Temporary Removal of Stocks

New Add- On Covers (w.e.f 01/04/2010)

1. House Breaking cover2. Electrical Risks for Electrical Installations

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Special PoliciesSpecial Policies

Reinstatement Value Policy

for Buildings, Plant and Machinery etc

-- In claim Settlement Depreciation is not deductedfrom new Replacement value.-- Physical Reinstatement is required for this

mode of settlement. Otherwise Market valuemode is adopted.-- Within 6 months intention to reinstate & within 12

months actual reinstatement to be carried out.-- No Extra premium,-- Not applicable for stocks

Reinstatement Value Policy

for Buildings, Plant and Machinery etc

-- In claim Settlement Depreciation is not deductedfrom new Replacement value.-- Physical Reinstatement is required for this

mode of settlement. Otherwise Market valuemode is adopted.-- Within 6 months intention to reinstate & within 12

months actual reinstatement to be carried out.-- No Extra premium,-- Not applicable for stocks

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Fire Claims ProcessFire Claims Process

Important aspects ofFire Policy Claims Cause of Loss- Insured Peril or not Date and Place of Loss- covered by policy or

not

Property Damaged- covered or not Damaged Property Value Reinstatement Value or Market Value Salvage Value

Under Insurance - Policy Item wise Policy Excess - Peril wise Depreciation deduction

Important aspects ofFire Policy Claims Cause of Loss- Insured Peril or not Date and Place of Loss- covered by policy or

not

Property Damaged- covered or not Damaged Property Value Reinstatement Value or Market Value Salvage Value

Under Insurance - Policy Item wise Policy Excess - Peril wise Depreciation deduction

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Claims DocumentsClaims Documents

o Claim Intimation & Estimate of Loss

o Policy Copy

o Cause of loss, Date & Place of Loss anddetails of Property damaged for cross check-up

o Fire Brigade Report/ News paper Clippings/Govt Dept certificates

o Claim form and detailed claim bill

o Survey report with photos

o Claim Intimation & Estimate of Loss

o Policy Copy

o Cause of loss, Date & Place of Loss anddetails of Property damaged for cross check-up

o Fire Brigade Report/ News paper Clippings/Govt Dept certificates

o Claim form and detailed claim bill

o Survey report with photos

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Claim documentsClaim documents

o Evidences of Loss, Documentary proof ofvalues and salvage value details

o Buildings, P & M, Stocks etc --- Damagedproperty details and values.

o Other Insurance Policy details for samedamaged property

o Bills for expenses incurred i.e. for lossminimization actions, Debris Removal,Architects Fees etc.

o Evidences of Loss, Documentary proof ofvalues and salvage value details

o Buildings, P & M, Stocks etc --- Damagedproperty details and values.

o Other Insurance Policy details for samedamaged property

o Bills for expenses incurred i.e. for lossminimization actions, Debris Removal,Architects Fees etc.

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Types of Fire Insurance Policy

- Valued Policies

Types of Fire Insurance Policy

- Valued Policies

In this policy the indemnity is a fixedamount agreed upon at the time of signing

the contract.

The insurance company pays that amount

regardless of the actual loss due to fire.

In this policy the indemnity is a fixedamount agreed upon at the time of signing

the contract.

The insurance company pays that amount

regardless of the actual loss due to fire.

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Replacement PoliciesReplacement Policies

The policy indemnifies the cost ofreplacement of machinery to a conditionequal to but not better or more extensive

than its condition when new.

Hence this policy is new for old.

This policy can be issued for Building,Plant and Machinery, Furniture Fixture &Fittings only.

The policy indemnifies the cost ofreplacement of machinery to a conditionequal to but not better or more extensive

than its condition when new.

Hence this policy is new for old.

This policy can be issued for Building,Plant and Machinery, Furniture Fixture &Fittings only.

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Replacement PoliciesReplacement Policies

Reinstatement must be carried out by theinsured in order to obtain the benefits of thespecial basis of settlement.

The work of reinstatement must becompleted within 12 months from the date ofloss, failing which the claim will be settledon market value basis.

The insured also needs to pay higher rate ofpremium.

Reinstatement must be carried out by theinsured in order to obtain the benefits of thespecial basis of settlement.

The work of reinstatement must becompleted within 12 months from the date ofloss, failing which the claim will be settledon market value basis.

The insured also needs to pay higher rate ofpremium.

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Floating PoliciesFloating Policies

It is taken out for those goods which arefrequently changing in a warehouse.

This policy can be taken on those goodswhich are lying on different localities or godowns.

Since quantity of goods lying in thewarehouse or at different places fluctuatefrom time to time, it becomes difficult forthe owner to take a specific policy.

It is taken out for those goods which arefrequently changing in a warehouse.

This policy can be taken on those goodswhich are lying on different localities or godowns.

Since quantity of goods lying in thewarehouse or at different places fluctuatefrom time to time, it becomes difficult forthe owner to take a specific policy.

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Declaration PoliciesDeclaration Policies

Many insured may have stocks whichfrequently fluctuate in value.

To take care of such fluctuation inquantity/ value , a declaration policy isissued.

The sum insured will be the maximumpossible value at any point of time duringthe policy period.

Many insured may have stocks whichfrequently fluctuate in value.

To take care of such fluctuation inquantity/ value , a declaration policy isissued.

The sum insured will be the maximumpossible value at any point of time duringthe policy period.

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Adjustable Policies :Adjustable Policies :

It is issued for existing stock. In this policy premium rate shall be

adjusted according to increase or decreasein the value of stock, this change will be

notified to the insurer by the insured. In case of loss by fire, the amount notified

by the insured at the maturity of the policyis taken as final and indemnified upto thatlimit.

It is a contract limited to merchandise orstock in trade other than farming stock.

It is issued for existing stock. In this policy premium rate shall be

adjusted according to increase or decreasein the value of stock, this change will be

notified to the insurer by the insured. In case of loss by fire, the amount notified

by the insured at the maturity of the policyis taken as final and indemnified upto thatlimit.

It is a contract limited to merchandise orstock in trade other than farming stock.

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Specific PoliciesSpecific Policies

A specific policy is a type of policy in whichthe property is insured for a specific sum

irrespective of its value.

If there is loss, the stated amount will have

to be paid to the policyholder.

A specific policy is a type of policy in whichthe property is insured for a specific sum

irrespective of its value.

If there is loss, the stated amount will have

to be paid to the policyholder.

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Average PoliciesAverage Policies

Where a property is insured for a sumwhich is less than its value, the policy

contain a clause that the insurer shall notbe liable to pay the full loss but only thatproportion of the loss which the amount

insured for, bears to the full value of theproperty.

Where a property is insured for a sumwhich is less than its value, the policy

contain a clause that the insurer shall notbe liable to pay the full loss but only thatproportion of the loss which the amount

insured for, bears to the full value of theproperty.

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Discounted PoliciesDiscounted Policies

The insurance is affected on the maximum valueof stock remains throughout the year andaccordingly premium charged.

In the case of no indemnity, one third of thepremium paid is return to the insured at the endof the year.

It can be treated as a discount in considerationof variations in value of goods.

The insurance is affected on the maximum valueof stock remains throughout the year andaccordingly premium charged.

In the case of no indemnity, one third of thepremium paid is return to the insured at the endof the year.

It can be treated as a discount in considerationof variations in value of goods.

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Thank you

.

Thank you

.

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