INTRODUCTION:

Every business has a specific set of requirements. Our

range of business products is especially designed to
meet your business needs across the commercial
spectrum. It is pivotal to get adequate insurance cover
for your business to mitigate risk.
Fire and Special Perils Policy (Material Damage)

Types Of Fire Insurance

Excess loss policies:- This policy is obtained
where the stock fluctuate indefinitely. The trader
has to obtain two policies.
Under the cover of first policy, the loss is
indemnified upto the sum insured. If the loss exceeds
this limit, that can be met out from the Excess Loss
Policy.
Standard policies:- This policy provides
securities against some fundamental risks. The
premium is kept at a lower rate. This policy has two
types 1) for household goods and 2) for all other
purposes such as for factories, shops, godowns,
furnitures etc. The risks which are overlooked
include loss due to natural calamities.
Special peril policies:- In addition to ordinary
risks, this policy provides for coverage of risks

involving explosion, violance, etc. Additional rate of

premium is charged for this.
Comprehensive policies:- Known as all-in-one
policy, the insurance company indemnifies the
policyholder for loss arising out of fire, burglary,
theft and third party risks. In this type of policy, the
policyholder also gets paid for loss of profits
incurred, due to fire, till the time the business
remains shut.
Sprinkler leakage policies:- This policy insures
destruction of or damage due to accidently leaking
water from automatic sprinkler installation, used in
the insured premises to put out fire.
Rent policies:- This policy protect the building
owners from the loss of rent. If a tenant doesnt
pay rent because of fire in the rented portion, the
insurance company will pay for such loss. This may
constitute a separate policy, or can be included
within other forms of cover and may be affected
either by the owner or by the tenant or by an
owner-occupier. If the tenant is not paying rent
because of fire, the owner can claim rent from the
insurer.
Floater declaration policies:- This type of
policies can be issued subject to minimum sum
insured for Rs. 2 crore and compliance of rules of
declaration policies.
Long term policies for Houses/Flats:- Long
term policies shall be as per the following terms
and conditions

a) Issued to House/Flat Owner only

b) The policy shall be issued for a minimum
period of
three years

HAZARDS
Physical hazards
Occupational hazards
Moral hazards
Internal hazards
Legal hazards
Sum Insured
The value of property is considered while
fixing the sum insured. The property can be insured on
Market Value (Depreciated cost) or Replacement Cost
basis.
Basis of Premium
Premium rate will depend on construction of
building and occupancy. Discounts/Loadings on
premium are given based on past claims experience for
risks exceeding Rs. 50 crores sum insured at any
location and installation of fire extinguisher appliances.
The amount of premium depends on a number of
factors based on the underwriting policies of different
insurers.
Conditions On Fire Insurance Policies

1)GENERAL EXCLUSIONS

The first 5% of each and every claim subject

to minimum of Rs.10,000/- in respect of Act of
God only perils such as lightning, STFI,
Subsidence, Landslide and Rockslide.

The First Rs.10,000/- for each and every loss

arising out of other perils.
The excess shall apply on the basis of per
event per insured. However this does not
apply to policies covering dwellings.
EXCLUDED PERILS

War and War like perils : Loss, destruction or

damage caused by war, invasion, act of
foreign enemy, hostilities or war like
operations( whether war be declared or not ),
civil war, mutiny, civil commotion assuming
the proportions of or amounting to a popular
rising, military rising, rebellion, revolution,
insurrection or military or usurped power.

OTHER EXCLUSIONS

Loss or damage caused by ionizing radiation

or contamination

Loss or damage caused by pollution or

contamination excluding

a) Pollution or contamination which itself results from a

peril hereby
insured against,
b) any peril hereby insured against which itself results
from pollution or contamination.

Loss, destruction or damage to bullion or

unset precious stones, any curious or works of
art for an amount exceeding Rs.10,000/-,
goods held in trust or on commission,
manuscripts, plans, drawings, securities,
obligations or documents of any kind, stamps,
coins or paper money, cheques, books of
accounts or other business books, computer
system records, explosives unless otherwise
expressly stated in the policy.

Loss or damage to stocks in cold storage

premises caused by change of temperature.

Loss, destruction or damage to any electrical

machine, apparatus, fixture or fittings arising
from or occasioned by over running, excessive
pressure, short circuiting, arcing, self hearing
or leakage of electricity from whatever cause.

Indirect loss or consequential loss such as loss

of earnings, loss of delay, loss of market etc.

Loss by theft or after the occurrence of any

insured peril except as provided under Riot,
Strike, Malicious and Damage Cover.
Loss or damage caused by earthquake,
volcanic eruption or other convulsions of
the nature.
Loss or damage to property insured if
removed to any building or place other
than in which it is herein stated to be
insured except machinery and equipment

temporarily removed for repairs, cleaning,

renovation or other similar purposes for a
period not exceeding 60 days.
2) GENERAL CONDITIONS:
1) Policy Voidable
2) Alteration
3) Fall or Displacement
4) Warranties
5) Reasonable Precautions
6) Cancellation

3) Claims Conditions
Action By Insured:
a) In the event of damage the insured shall
- notify the insurer immediately
- notify the police authority immediately if it
becomes evident that such damage have been caused
by malicious persons;
- Carry out and permit to be taken any action
which may be
reasonably practicable to prevent
further damage;
- full information in writing of the property lost
destroyed or damaged;
- detail of any other insurance on any other
property hereby
insured immediately;

- all necessary proofs and information relating to

the claim as
may reasonably be required
- if necessary, statutory declarations of the truth of
the claim
and any matters connected with it
b) No claims under this policy shall be payable unless
the terms of this conditions have been complied with.
1)Condition of average (under Insurance)
2)Fraud
3)Reinstatement: If any property is to be reinstated
or replaced by the insurer the insured shall at his
own expenses provide all such plans, books and
information as may reasonably be insured.
4)Insurers right following a claim
5)Reinstatement of sum insured after a loss
6)Contribution
7)Subrogation
8)Arbitration
Claims settlement procedure in fire insurance
Fire Insurance Claim Procedure:
Individuals/corporate must inform insurer as
early as possible , in no case later than 24
hours.

 Provide relevant information to the

surveyor/claim representative appointed by
the insurer.
Presentation of necessary documents
The surveyor then analyzes the extent/ value
of loss or damage.
The claim process takes anywhere between
one to three weeks.
Documents Required for Fire Insurance Claim :
1.
2.
3.
4.
5.

True copy of the policy along with schedule.

Report of fire brigade.
Claim Form
Photographs
Past claims experience