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FIRE CLAIMSFIRE CLAIMS

Praveen Thakkar

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Introduction Introduction

Important Elements of ClaimWe will cover step by step procedure of

Loss Assessment of a Claim under Fire Policy.

Any specific areas of Interest of any one relating to this can be discussed at the end of session

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AgendaAgenda

Elements of Claim:1 Policy Coverage2 Quantification of loss3 Valuation of loss

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Agenda…..Agenda…..

Step by step Loss Assessment1.Value at Risk2.Reinstatment or Depreciation3.Salvage4.Under insurance5.Policy Excess & Apportionment

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Elements of Claim: Elements of Claim: Policy Coverage Policy Coverage Insurable InterestPolicy terms and conditionsCause of LossPolicy Endorsements if any

Text

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Elements of Claim:Elements of Claim:Quantification of LossQuantification of LossPhysical VerificationDocuments at site of FireAccounting documents and recordsReview of Extent of damage and

segregation in to categoryExercise to include damage and un

damage property

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Elements of Claim:Elements of Claim:Value of LossValue of LossVerification of item ratesVerification of invoices and paymentsAdjustments for improvements, modvat,

non indemnifiable component of cost

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Loss Assessment:Loss Assessment:Value at RiskValue at RiskCompute total value of affected and

unaffected property for the affected policy block.

Adjustment wherever necessary e.g. Depreciation, Obsolescence, Expiry of date of use etc.

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Loss Assessment:Loss Assessment:Reinstatement & DepreciationReinstatement & DepreciationReinstatement value provision applies to

Fixed Asset i.e. Building, P&M, FFF etc. For stocks market value is the basis of lossIt is necessary to have endorsement for

RIV clause for policy on RIV basisInsured has choice to accept loss on RIV

or Depreciation basisDepreciation depends on nature of Asset,

past history, condition at the time of fire

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Loss Assessment :Loss Assessment :SalvageSalvageItems sensitive to deteriorationItem needing immediate actionInsured is the best buyer

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Loss Assessment :Loss Assessment :Under InsuranceUnder InsuranceUI for Reinstatement ValueUI for Depreciated Value

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Loss Assessment :Loss Assessment :Policy ExcessPolicy ExcessExcess for Standard Fire PolicyExcess for Natural PerilsAny other as applicable

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Your Questions Please?Your Questions Please?

Thank you