Fire Insurance Policy
Fire Insurance Policy
Fire Insurance policies are being issued by the General Insurance Companies for Dwellings, Offices, Hotels, Shops, Industrial and Manufacturing Risk of various types, and Godowns where various types of goods are stored.
The Standard Fire policy covers
3) Explosion / Implosion,
4) Aircraft Damage,
5) Bursting and/or overflowing of water tanks,
6) Leakage from Automatic Sprinkler Installation,
7) Riot, Strike, Malicious damage,
8) Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado,
9) Flood and Inundation,
Add on Covers like Terrorism and Spontaneous Combustion can also be covered.
Floater policy can be issued for stocks at various locations under one sum insured. For this policy, 10% of the additional premium will be charged on the Standard Fire policy.
To take care of frequent fluctuations in stocks/stock values, Declaration policy can be granted subject to the following conditions.
- The minimum Sum Insured should be Rs.2 crores in one or more locations and the sum insured shall not be less than 25 lakhs at least in any one of these locations.
- Monthly declarations based on
- The average of the values at risk on each day of the month or
- The highest value at risk during the month shall be submitted by the insured latest by the last day of the succeeding month.
- The basis of a value of the declaration shall be the “Market Value“ anterior to the loss.
- Architects Fee: Architects, Surveyors and consulting engineers fees (in excess of 3% of claim amount).
The above fees can be increased up to 7.5% of the adjusted loss by paying the additional premium.
- Removal of Debris: ( In excess of % of the claim amount )The cost of removal of debris can be selected by the insured for a particular Sum Insured subject to a maximum 10% of the claim amount.
- Spontaneous Combustion: Certain materials are subject to natural heating or spontaneous combustion. By paying the additional premium for this risk the policy shall be extended to include destruction or damage caused to the property insured.
- Temporary Removal Of Stocks Clause: It is agreed that the stock insured hereby not exceeding 10% of the total Sum insured of such stock is covered while temporarily removed to any other premises for the purpose of Fabrication or processing or finishing or other similar purposes.
- Loss of Rent Clause: This policy may be extended the cover the loss of rent. The insurance on the rent apply only if the said building or any part thereof is unfit for occupation in consequence of its destruction or damage by the perils insured against and then the amount payable shall not exceed such portion of the Sum Insured on Rent as the period necessary for reinstatement bears to the term of rent insured.
- Additional Expenses of Rent for an Alternative Accommodation: Additional expenses of rent for an alternative accommodation in respect of non-manufacturing risks may be covered on the following basis
- The cover may be granted for non-manufacturing premises only
- The cover may be granted under the material damage (Fire) policy and not under consequential loss (fire) policy.
- The period of indemnity should not exceed three years.
- Escalation Clause : In consideration of the payment of an additional premium amounting to 50% of the premium produced by applying the specified % to the annual premium as appropriate on the noted item(s) sum(s) insured thereby shall during the period of insurance, be increased each day by an amount representing 1/365th of the specified % increase per annum.
- Reinstatement value Clause: Fire policy can be issued for the reinstatement value on Buildings, Machinery, Furniture, Fixtures and fittings only.
- Designation Of Property Clause( without extra premium ): For the purpose of determining, where necessary the item under which any property is insured, the insurers agree to accept the designation under which the property has been entered in the insured’s books of account.
- Goods Held In Trust Clause or Commission Clause (without extra premium): At the time of proposal, the insured should clearly mention that the Property / Goods held in trust or Commission basis and the same is endorsed in the policy.