fire management final

8/9/2019 Fire Management Final

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AbhijitYewale -1Adarsh Soni - 2

Deepak Singla - 13Jitendra Singh 19

Kushal Rastogi 20Neha Daga 24 1


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A fire insurance policy involves an insurance

company agreeing to pay a certain amountequivalent to the estimated loss caused by fire tothe insured, within the time specified in the

contract.

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Purpose :

To provide financial protection against loss(or)damage to property by fire & other specified perils.

Calculation of Fire Insurance Amount/Premium:

The market value of the property is consideredwhile insuring the sum.

The amount of premium depends on a number offactors such as the type of policy the insured hasopted for.

Individual policies of different insurers 3


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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.

Luxurious lifestyle , Gadget Freaks Increase Fireaccidents.

Gives financial support to the person.

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Contract of indemnity.

Duration of cover- 1 year.

Cover losses caused proximately by fire.

For Deliberate act from Policy Holder No Payment.

Inform the insurance company at the earliest and within24 hours.

Fire policy have some exclusions.

Payment ofClaims.

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Building : Including Electrical installation, pipelines etc.

Contents : Plant & Machinery. Equipments, accessories. Furniture ,fixtures and fittings.

Stock

: Raw Material. Stock in Process. Semi finish Goods. Finish goods.

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Market value=CNRV Depreciation.

CNRV : Current New Replacement Value.

Written down value = Purchase Value Depreciation.

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Fire.

Lightning.

Explosion/implosion : Excluding Damage to boilers

Aircraft damage.

Riot , strike and malicious damage : Exclusion-burglary, housebreaking & theft etc. Terrorism .

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Storm,cyclone,typhoon, tempest, hurricane, tornado,

flood : Excluding eq /volcanic eruption and other convulsionsof nature.

Impact damage by rail/road vehicles, animals

(not belonging to or /owned by insured/occupier of premises).

Landslide including rock slide.

Bursting and/or overflowing of water tanks,

apparatus, pipes

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Missile testing operations.

Leakage from automatic sprinkler installation.

Bush fire : Excluding forest fire.

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A fire insurance policy typically has four differentcoverage areas:-

The dwelling portion.

Rebuilding expenses .

Personal property .

Additional expenses.

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Specific Policy : Insurance company is liable to pay a sum. Bear a part of the loss.

Actual value of the property is not considered in decidingthe amount of indemnity.

Comprehensive Policy : Known as "all-in-one" policy. Covers loss arising out of fire, burglary, theft and third

party risks. Get paid for loss of profits incurred, due to fire, till the

time the business remains shut.

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Valued Policy :

The value of the commodity is already. Actual loss is not taken into consideration.

Floating Policy :

Coverage expands to different properties. Protection of goods kept at two different stores.

Replacement or re-instatement Policy :

Replaces the damaged property/commodity with a newone.

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Excess -5% of claim(min rs.10000/-).

Loss or damage due to-

War and allied perils.

Nuclear perils.

Stocks in cold storage due to change in temperature.

Architects, surveyors and consulting engineers fees inexcess of 3% of claim amount.

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Debris removal expenses in excess of 1% of claim

amount.

Loss of earnings, delay and consequential losses.

Spoilage of material due to interruption.

Electrical fittings, electronic machines due to over running,excessive pressure, short circuiting , leakage of electricityand arcing.

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Theft during or after the occurrence of fire.

Property Removed from the Insured Premises (ExceptMachinery for Repairs Up to 60 days).

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Non-disclosure or misrepresentation of material factwill render the contract null and Void.

Insurance ceases after 7 days from the date of fall (or)displacement of building(or) part of building, if suchfall is not due to an insured peril.

Insured must inform insurers within 7 days of suchfall or displacement.

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Insurance will cease to attach if

There is alteration in trade/manufacture/occupationin such a way that the risk increases.

The building(or) the premises remain unoccupied formore than 30 days.

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If there is a marine policy covering the same risk , firepolicy will pay only over and above the claim under

marine policy. Cancellation - policy may be cancelled by either of

the parties

If Insured cancels---refund on short period basis.

If Insurer cancel refund on Prorate basis.

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Rights of the insurer-

When there is a claim, the insurer has the right-

To take possession of premises (or) building(or)property

To remove, sort and salvage the property

To sell (or) dispose off the property in the interest ofall concerned.

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Fraud-

The insured is not entitled to any benefits under thepolicy if-

I) The insured causes loss to the property willfully.

Ii) Produces false evidence for the settlement of theclaim.

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Individuals/corporates must inform insurer as early aspossible , in no case later than 24 hours.

Provide relevant information to the surveyor/claimrepresentative appointed by the insurer.

The surveyor then analyzes the extent/ value of loss or

damage.

The claim process takes anywhere between one tothree weeks.

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1. True copy of the policy along with schedule.

2. Report of fire brigade.

3. Claim Form.

4. Photographs.

5. Past claims experience.

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Owners of property, whether sole, or joint owner, or

partner in the firm owning the property.

The vender and purchaser..

The mortgagor and mortgagee have both distinctinterests in the mortgaged property

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Trustees are legal owners and beneficiaries

Bailers such as carriers, pawnbrokers or warehousemen are responsible for there safety of the property .

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THANK YOU

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fire management final

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