New Afire add on. Insurance

7/29/2019 New Afire add on. Insurance

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Add on Covers

ADD ON COVERS(FIRE POLICY)

ADD ON COVERS(FIRE POLICY)

By Sunit Mathur


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Add on Covers

Standard fire and special perils policy can be extended toinclude ADD ON COVERS. Premium to be charged onPolicy Rate or rates given.

For mid term inclusion ofAdd on Covers annual premium

shall be charged. No refund of premium shall be made on Add on Covers being

Cancelled mid term unless the policy is cancelledsimultaneously or replaced by a fresh insurance includingadd on covers for an identical or increased amount.

Earthquake ,Terrorism, Spontaneous Combustion, andForest Fire are to be added (whenever such perils are opted)to the Policy rate for providing Add on Covers lik Architect,Surveyors & consulting Engineers Fee, removal of Debris,Deterioration of stock in cold storage , start up expenses etc.


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Architect, Surveyors & ConsultingEngineer Fees

Premium Rate:- Policy Ratei. In Excess of 3% of the adjusted loss.

ii. Expenses incurred for plans, specification, tenders,quantities & services in connection with thesuperintendence of the reinstatement for thebuilding, machinery & equipment.

iii. Cost in connection with the preparation of theinsured estimate of loss not covered.

iv. Premium rate same as applicable to the Standardfire & special perils policy.

v. Specified sum insured not exceeding 7.5% of claim

amount


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2. Debris Removal

Premium Rate :- Policy Rate.i. In Excess of 1% of the adjusted loss.

ii.

a. Removal of debris.

b. Dismantling or demolishing.

c. Storing up or propping.

iii. Item ii) b & ii) c to be deleted if building nor

machinery covered.iv. Premium rate same as Applicable to the StandardFire & special perils policy.

v. Specified sum insured not exceeding 10% of sum

insured.


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3. a) Deterioration of stocks in cold storagedue to accidental power failureconsequent to damage at the premises of

power station due to an insured peril

By change of temperature in consequence of

failure of electric supply at the terminal ends of

the electric service feeders from which the

insured obtains electric supply directly.

Due to damage caused by any peril insured to

property at insured premises or any electric

station or substation of public electric supply

undertaking from which the insured obtains

electric supply.


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Not liable for any deliberate act of Govt., Municipal or

Local authority or Supply authority not performed for

the sole purpose of safeguarding life or protecting any

part of the supply undertakings system or by theexercise by any such authority of its power to withhold

or restrict or ration not necessitated solely by damage

to the supply undertakings equipments by insured

peril.Duration of such failure should exceed 24 hours.

The burden of providing that damage is covered shall

be upon the insured.Premium rate will be 25% of the policy rate on sum

insured of stocks.


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Damage to property covered caused by change

of temperature in consequence of failure of

electric supply following damage to insureds

property due to insured peril(s).

Not liable for any deliberate act of govt.

municipal or local authority or supply authority

not performed for the sole purpose ofsafeguarding life or protecting any part of the

supply undertakings system or by the exercise

by any such authority of its power to with holdor restrict or ration not necessitated solely by

damage to the supply undertakings equipments

by insured peril.


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Duration of such failure should exceed 24

hours.

The burden of providing that damage is

covered shall be upon the insured.

Premium rate will be policy rate on sum

insured of stocks.


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Forest Fire

(4)(Premium rate Rs 5%0 minimum) Damage to the property directly caused by

burning whether accidental or otherwise of

forest, jungles, Bushes and clearing of lands byfire.

Premium Rate :-

Where loss experience for previous 5 yearsexcluding the expiring policy period is less than

30% a 50% discount on the rate may be

considered.


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Where loss experiene is above 60% the rate

should be adjusted in such a way that the loss

experience for the policy period worked out as

above in (i) be adjusted to 60% subject tomaximum rate of Rs.15%.


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Forest Fire

S.I Rs.2,40,00,000/-

Rate @ Rs.5%0 Premium

Rs.1,20,000/-

Period of Insurance Premium Incurred claim

01.04.1995 to 31.03.1996 Rs.1,20,000 1,00,000

01.04.1996 to 31.03.1997 Rs.1,20,000 1,20,000

01.04.1997 to 31.03.1998 Rs.1,20,000 1,40,000

01.04.1998 to 31.03.1999 Rs.1,20,000 60,000

01.04.1999 to 31.03.2000 Rs.1,20,000 1,80,000

6,00,000 6,00,000

01.04.2000 to 31.03.2001 Rs.1,20,000 1,00,000


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Incurred claim = Incurred claim * 100

Premium

=6,00,000 * 100 = 100%

6,00,000

Load the Premium so that it come 60%

6,00,000 * 100 = 60%

1,0,00,000

Premium payable at renewal = Rs.4,00,000/- +1,20,000 Total Rs.5,20,000

Rate = 5,20,000 * 1000 = Rs.21.66%0

2,40,00,000 MAX. Chargeable Rs.15%0

Premium payable = Rs.3,60,000/- for renewal

01-04-2001 To 31-03-2002


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(5)Impact damage due to insureds ownrail/road vehicles, fork lifts, cranes, stackersand the like and articles dropped there from.

Damage caused due to impact bydirectcontact to insureds property caused byinsureds own rail/road vehicles, fork lifts,

cranes, stackers and the like and articles

dropped there from.

Premium 5% of policy rate on policy suminsured.


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(6)Spontaneous Combustion

Loss or damage by fire only to the propertyinsured caused by its own fermentation, natural

heating or spontaneous combustion.

N.B By fire only must not be omitted underany circumstance.

Premium to be charged on Sum Insured of

relative commodity


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Premium Rates

Category I (low or non existment) 0.25%

Category II (moderate) 0.50%

Category III (variable) 0.75%

Category IV (high) 1.00%


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(7)Omission To Insure Additions, Alterationsor Extensions Clause

Policy covers Buildings and/or Machinery, Plant

and other contents (contents means furniture

and fittings excluding stocks) which the insured

may erect or acquire or may become

responsible:-

(a)At the within described premises.

(b)For use as factories.

Liability shall not exceed 5% of the sum insured

by each item in respect of (a) and 5% of the

sum insured by item no. in respect of (b).


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Premium rate shall be the policy rate on 5% of sum

insured on Building/Machinery/Furniture & fittings.

Premium as above should be collected in advance.

The insured shall inform the insurer of each additionalinsurance as soon as it comes to their knowledge and

shall pay appropriate additional premium from the

date of inception.

All new additions to Buildings &/or Machinery not

specifically insured/included during the currency of the

policy should be declared at the end of the year and

suitable additional premium paid on pro rata basisfrom the date of completion of the construction/

erections or additions may be suitably adjusted.


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If insured fails to declare values of such

additions within 30 days after the expiry of

policy there will be no refund of the advance

premium paid.

(8)Earthquake (Fire And Shock)

(a) If SFTI Group of Perils Peril is deleted:-

Covers loss (including loss by fire) due to

earthquake including Landslide/Rockslide

resulting there from but excluding flood or

overflow of the sea, lakes reservoirs and riverscaused by earthquake.

(B) If SFTI P il i t d l t d


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(B) If SFTI Peril is not deleted:-

Covers loss (including loss by fire) due toearthquake including Landslide/Rockslide

resulting there from but including flood oroverflow of the sea, lakes, reservoirs and riverscaused by earthquake.

Company shall not be liable for 5% of each andevery claim subject to Minimum of Rs.10,000/-.

Entire property in one complexcompound/location is to be covered and the S.I

should be identical to the main policy (exceptfor the value of plinth and foundation).

Onus of proof lies with the insured (if so

required by the company).

E th k Z R t


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Earthquake Zone Rate

I 1.00%0

II 0.50%0

III 0.20%0

IV 0.10%0

D lli ffi H t l Sh t (S ti


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Dwellings offices Hotels, Shops etc (Section

(III) 0.10%0 regardless of Zones.

(9)Spoilage Material Damage Cover

Perils causing the spoilage should be same as

those covered under the policy.

(ii)Cover to material damage i.e. (a)Loss of stock in process

(b)Damage to Machinery, Containers and

Equipments (including cost of removal of debrisand cleaning).

L d b il d t t d ti


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Loss or damage by spoilage due to retardationor interruption or cessation of any processcaused by any of the perils covered under the

policy subject to liability admitted under thepolicy.

Sum to be insured cover must be for all stocksand Machinery, Container and Equipment inspecified blocks, specified sums be declared foreach block and must be made subject toaverage.

Premium to charged on the value of stocks inspecified blocks @ 5 times the policy rate and2.5 times the policy rate on the value ofmachinery, containers and equipments inspecified blocks.

L k d C t i ti


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Leakage and Contamination(10)Cover

Cover for oils and chemicals only Cover to include the risk of :-

Accidental leakage and contamination

Accidental leakage (A)Where leakage and contamination cover

is granted:-

Physical loss of oils/chemicals by leakage fromits container by accidental means and allaccidental contaminations by contact withforeign matter.

EXCLUSIONS I fid lit di h t th


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EXCLUSIONS:-Infidelity or dishonesty on thepart of the insured/employees, shortage,

shrinkage, evaporation, mysterious

disappearance or unexplained losses or loss byburglary or theft not covered.

Loss resulting from processing or faulty

workmanship not covered.

Contamination due to improper handling or

controls by insureds own employees.

Loss of use, loss of earnings, delay or loss ofmarket or other consequential or indirect loss of

any kind.

(B)Where leakage cover alone is granted


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(B)Where leakage cover alone is granted

Physical loss of oils/chemicals by leakage from itscontainer by accidental means and all accidental

contaminations by contact with foreign matter EXCLUSIONS:-.

Infidelity or dishonesty on the part of theinsured/employees shortage, shrinkage, evaporation,

mysterious disappearance or unexplained losses orloss by burglary or theft not covered.

Loss resulting from processing or faculty workmanshipnot covered.

Contamination due to improper handling or controls byinsureds own employees.

Loss of use, loss of earnings, delay or loss of marketor other consequential or indirect loss of any kind.

S i l C diti (A li bl t A d B)


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Special Conditions (Applicable to A and B)

Before pumping and/or decantation operations

the insured shall arrange at their own expense

sampling and purity certification by competent,

approved and independent agency/surveyor for

such distinct lot, batch or tank load ex ocean

vessel of the insured subject matter and shallpump/decant only such material as is pure and

without contaminations (at insured expense).

I ti d tifi ti f t t


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Inspection and certification from competent,

approved and independent agency/surveyor as

to the cleanliness and fitness of the pipe lines,

pumping equipment and the receiving tanksprior to the commencement of pumping,

decanting, receiving and/or storage operations

(at insured expenses). Such certification should confirm that the

pumping, carrying and storage equipment

facilities and tanks are free from impurities,contaminants and/or residue or left over from

previous use of equipments, facilities or storage

tanks.

Fresh certification would be required in the event of


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Fresh certification would be required in the event of

the said tanks being empty and fresh stocks are

pumped/decanted in during the currency of the policy.

Certificate from a competent approved andindependent agency/surveyor as to the purity and

quality of the insured subject matter after receipt in

land tanks (at insured expenses).

Basis of valuation Market value at the time andplace of loss.

All losses during any one period of seventy two

consecutive hours caused by earthquake shock shallbe deemed to have been caused by Earthquake and

will constitute one loss. Insured shall select a time

from which any such period shall commence but no

two such selected periods shall over lap.

Each claim is s bject to an e cess of 1% on


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Each claim is subject to an excess of 1% on

each tank with a minimum of Rs.60,000/- each

loss.

Condition no 1 to 5 not applicable where

leakage cover alone is granted.


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Average Condition

Premium Rates Leakage cover Leakage andcontamination

cover

Where the tanks are

within insureds ownpremises

Rs.5%0 Rs.10%0

Where the tanks are

located elsewhere

Rs.6%0 Rs.12%0

Temporary Removal Of Stock


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Temporary Removal Of Stock(11)Clause

Stock not exceeding 10% of the total suminsured of stock is covered while temporarilyremoved to any other premises forfabrication/processing/ finishing or otherpurposes.

Pro Rata average condition will apply to thelimit of stocks temporarily removed as well as to

the total sum insured of such stock under thepolicy.

Rate:- 10% of the policy rate on sum insured on

stock.

(12)Loss of Rent Clause


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(12)Loss of Rent Clause

Rent payable if the building or part thereof is unfit for

occupation due to damage by the perils insured.

Amount of rent payable =

Period for reinstatement of the Bldg./

Term of the rent insured * S.I on Rent

Premium Rate 10% of Policy rate on sum insured onrent.

(13)Start up Expenses

Start up costs necessarily and reasonably incurred bythe insured upon a loss covered by the policy.

Premium Rate Policy Rate.

(14)Insurance of additional expenses of rent


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(14)Insurance of additional expenses of rentfor an alternate accommodation

For Non-Manufacturing premises.

Not to be granted under consequential loss

(fire) policy.

Max. Indemnity Period 3 years.

Additional expenses means additional rent

actually paid i.e the difference between the new

rent and the original rent.

Certificate from the local municipal authority or

an architect as a proof that premises are

untenantable.

Cover not for buildings of kutcha construction


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Cover not for buildings of kutcha construction .

The area for alternative accomodation must beequivalent to the area presently occupied. If

area is more then amount of rent payable. Area of the premises in the insureds occupation/XAdditional

rent

Area of the alternate accommodation taken by the insured

No restrictions of locality so long as thealternate accommodation is taken in the samecity/town.

For the owner occupant the standard rentbased on the rateable values fixed by Municipal/ Revenue authority for tax purpose may betreated as original rent.

It is compulsory for the owner occupant to


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It is compulsory for the owner occupant to

insure both building and contents.

Tenants to insure the contents.

If the insured is a tenant only and for

safeguarding his legal tenancy right is obliged

to pay rent for the premises even during the

period when it is not fit for occupation theadditional rent is the actual rent for the alternate

accommodation.

If the tenant is not obliged to pay rent during theperiod when it is not fit for occupation then

additional rent=Actual rent paid Minus Rent he

was paying.


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New Afire add on. Insurance

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