Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Demystifying Insurance – Get your claims faster

IDEA - Insurance Data Execution Assistance

+919886207965

Presentation by

K. S. Burli

PROPERTY INSURANCE

FIRE & ALLIED PERILS

MACHINERY INSURANCE

PROJECT INSURANCE

These are recommendatory in nature

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

WHY INSURANCE AT ALL?

•YOUR ASSETS BUILT UP OVER YEARS NEED PROTECTION •If you have reserve funds to take care of unforeseen contingencies fine. If not you have to make provisions or RISK LOSS OF BUSINESS ITSELF. •Availing Insurance more economical for unforeseen contingencies rather than keep reserves

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

FIRE INSURANCE POLICIES

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

1. Premises

Fire is a premises policy. The premises should be clearly Identified in the policy issued. Any ambiguity will delay the claim settlement.

One of the claims the stock was mentioned as opposite …premises leading to lot of investigation & confusion

Case Studies

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Misnomers in Valuation

1. Due to financial constraints low premium out go is the option chosen & valuation done accordingly. 2. Wrong impression that Insurance

Companies pay only book value, hence only book value to be insured.

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

What is the value I should cover under fire policy?

Options for fixed assets

1. Depreciated Value of the asset that gives YOU get back your lost value.

Value of my property today in the market in `as Is where is condition

2. Value of NEW asset of similar nature & capacity Value of my similar property if purchased

NEW.

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Fire policy can be taken on 1. Market value or 2. Reinstatement value For fixed assets 3. For Stocks it is based on cost

FIRE POLICIES

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Basic Data for Illustration:

Equipment purchased during 2000 for Rs. 1 Cr.

Current replacement value in 2008 Rs.3 Cr.

Market value in 2008 based on depreciation for past use and expected residual life Rs.2Cr .

To be insured for Rs.2 cr. Under MARKET VALUE

or Rs.3 cr. For REPLACEMENT.

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

In case of a claim under Market Value:

Market value = Rs.2 Cr. Equipment insured for Rs.1 Cr. (50%) Claim amount = Rs.20 lakhs. (Repair) Amount payable = Rs.10 lakhs only (50%)

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

In case of claim under Replacement Value:

Replacement value = Rs. 3 Cr.

Insured value = Rs.2 Cr.

Loss Suffered is say = Rs.60 Lacs.

Amount payable = Rs.40 Lacs

(60 x 2 / 3)

Presentation by

K. S. Burli

IDEA - Insurance Data Execution

Assistance +919886207965

Contingencies Covered

Fire

It is the Fire from out side that causes the damage

to the property, that is covered.

Fire inside the property either due to short circuit or

due to overheating or friction seizer are all the

Machinery Insurance Covers, which are excluded

from the FIRE POLICY

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

2. A Control Panel in a Textile mill got damaged due to short circuiting of one of its inner components and got completely charred.

FIRE INSIDE THE EQUIPMENT IS COVERED UNDER MACHINERY INSURANCE NOT UNDER FIRE POLICY. ONLY FIRE FROM OUT SIDE TO PROPERTY IS COVERED UNDER FIRE POLICY.

The fire damage to any equipment due to short circuit and resulting fire damage to it is not covered under FIRE policy. It is covered under Machinery policy.

However, the fire damage to other property due to the fire emanating from such short circuited equipment is covered.

Case Studies

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

1

2

3 4

A. If 1 below is a machine, which got short circuit damage and the Internal fire did not spread out side. Then the fire damage to machine no 1 Is not covered under Fire Policy

B. If there is a short circuit in M/C no.1 & resulting fire spreads out & damages Property no.s 2 & 3 shown above, Fire policy covers 2&3 due to fire. 1 Is not covered by Fire policy

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Riot, Strike, Malicious Damage

Aircraft Damage Impact Damage Lightning Explosion / Implosion Storm, Tempest, Flood, Inundation .

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Additional covers

• Terrorism Damage

• Earthquake

• Debris removal

Presentation by

K. S. Burli

IDEA - Insurance Data Execution Assistance

+919886207965

Marine Cum Storage cum Erection - BLOCK DIAGRAM

MARINE SITE-STORES ERECTION / TESTING COMMISSIONING

FABRICATORS PREMISES- 2

INTERMEDIERY-STORES

FABRICATORS PREMISES- 1

MARINE TRANSIT BY SEA, RAIL OR ROAD

IMPORTS & INDIGENOUS

SITE STORES

ERECTION TESTING & COMMISSIONING