STANDARD FIRE ANDBURGLARYINSURANCE

WHAT ARE WE GOING TO DISCUSS IN FIRE POLICY?

• BASIC COVER (FIRE & LIGHTNING)• CONDITIONS• ENDORSEMENTS (ADDITIONAL COVERS)• CLAUSES• WARRANTIES

FIRE INSURANCE POLICY

INSURANCE CONTRACT

• INSURED• INSURER • SUBJECT MATTER OF INSURANCE

INSURANCE CONTRACT

• INSURED Pay The Premium

• INSURER Pay The Compensation To The Insured Due To Loss Or Damage To The Subject Matter Of

Insurance

• SUBJECT MATTER OF INSURANCEEg -: on building, on stock etc...

PREAMBLE

• THE PROPOSAL AND DECLARATION WHICH SHALL BE THE BASIS OF THIS CONTRACT

• POLICY DOCUMENT IS EVIDENCE OF THE CONTRACT

FIRE INSURANCE

Standard FIRE policy covers Property Damage due to:

Fire

There must be an actual ignition/ fire (scorching, fermentation, smoke damage without a fire not covered)

The property that was on fire ought not have been on fire

Fire should be accidental/fortuitous

FIRE INSURANCE

Lightning

Property damage caused by lightning (whether resulting in fire or not)

Damage to electrical installations or appliances not covered (whether resulting in fire or not)

THIS POLICY AND SCHEDULE SHALL READ TOGETHER AS ONE CONTRACT

Conditions

Conditions MIS-DESCRIPTION

If there be any material mis-description of any of the property hereby insured, the Company shall not be liable upon this policy.

RECEIPTSNo payment in respect of any Premium shall be deemed to be payment to the company unless a printed form of receipt shall have been given to the insured.

Conditions

OTHER INSURANCEThe Insured Shall give notice to the Company of any insurance or insurance already effected or which may subsequently be effected covering any of the property insured.

Conditions

Risks not Covered - EXCLUSIONS Loss by theft during or after the occurrence of a fire Its own fermentation, natural healing or spontaneous

combustion The burning of property by order of any public authority Subterranean fire Caused by ionising radiations or contamination by

radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste

Earthquake, volcanic eruption or other convulsion of nature.

Typhoon, hurricane, tornado, cyclone, storm and tempest War, invasion, act of foreign enemy, hostilities or warlike

operations, civil war. Riot, military or popular rising, insurrection, rebellion,

revolution

Conditions

Risks not Covered unless expressly included

Goods held in trust or on commission Bullion or unset precious stones Any curio or work of art Manuscripts, plans, drawings, or designs,

patterns Stamps, coins or paper money, cheques, books Explosives Forests, Bush fire

Conditions

ALTERATIONS AND REMOVALSAny alteration should be notify to the company immediately.

Eg -: . If the trade or manufacture carried on be altered

. If the nature of the occupation changed

. Unoccupied and so remain for a period of more than 30 days

. If property insured be removed to any building or place

Conditions

MARINE CLAUSEThis Insurance does not cover any loss or damage to property which, at the time of the happening of such loss or damage, by insured by any Marine Policy.

CancellationInsurance may be terminated at any time at the requestInsured – Short period rate basisInsurer – Pro-rate basis

Conditions

Occurrence of lossOn the happening of any loss or damage the insured shall give notice to the company within 15 days after the loss or damage.

Forfeiture- If the claim be in any respect fraudulent- False declaration be made- Wilful act- Action or suit be not commenced within 3

months after rejection

Conditions

ReinstatementThe Company may at its option reinstate or replace the property damaged or destroyed, or any part thereof, instead of paying the amount of the loss or damage.

Conditions

Subrogation of Rights

This means the insurance company has the legal right to claim compensation from any other party that caused the accident.

For example vehicle A hits B, which as a result hits C. C will claim of B’s insurance company, but that insurance company has the right to claim from A’s insurance company, as it was A that really caused the damage to C.

Conditions

ContributionIf there be any other insurance or insurances covering the same shall not be liable to pay or contribute more than its rateable proportion of such loss or damage

Conditions

AverageIf the value of the insured property is more than the sum insured on that property, the insured will be considered his own insurer for the difference and the loss payments will be proportionately reduced

This is called as the Underinsurance

Sum Insured X Loss Value

Conditions

ArbitrationIf any difference arises as to the amount of any loss or damage such difference shall independently of all other question be referred to the decision of an arbitrator.

Time Limit for Company’s LiabilityCompany not be liable for any loss or damage after the expiration of twelve months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration.

Conditions

NoticesEvery notice and other communication to the company required by written or printed.

Electrical Exclusion ClauseThe company is expressly declared to be free from liability for loss of or damage to any electrical machines, apparatus, fixture or fitting.

Premium payment warranty

Additional Covers Riot & Strike

To cover loss or damage by rioters and locked out workers and any authority trying to suppress such activityWhere such act is committed in the course of a disturbance of the public peace

Additional Covers Exclusion under Riot & Strike

Loss of earnings, loss by delay or other consequential losses Loss or damage occasioned by permanent or temporary dispossession Due to nuclear weapons material Caused by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste War, invasion, act of foreign enemy, hostilities or warlike operations, civil war. Mutiny, civil commotions assuming the proportions of or amounting to a popular rising, military rising Goods held in trust or on commission, bullion or precious stones, any curios or work of art, manuscripts, plans, drawing, moulds, unless specially mentioned as insured Cyber attack

MALICIOUS DAMAGE COVER IS NOT OFFERED WITHOUT

RIOT & STRIKE COVER.

Additional Covers

Malicious DamageTo cover loss or damage by malicious acts of few persons or by an individual (Where not such act is committed in the course of a disturbance of the public peace)

Additional Covers

Exclusion under Malicious Damage

Loss or damage by fire or explosion Loss or damage arising out of or in the course of burglary, house breaking, theft or larceny or

any attempt thereat Excess

“Provided always that all the conditions and provisions of the said Riot & Strike endorsement

shall apply to this extension”

Additional Covers

Terrorism To cover loss or damage by Terrorists activities

NO RETURN OF PREMIUM SHALL BE GRANTED IF THESE COVERS ARE CANCELLED

AT THE REQUEST OF THE INSURED

S R C C

Terrorism

COVER PROVIDED BY THE GOVERNMENT FUND AS PER ITS

RULES

Additional Covers Explosion

Loss or damage to the property insured directly caused by explosion, but excluding loss of or damage to boilers, economizers, or other vessels, machinery or apparatus in which pressure is used or their contents resulting from their explosion

Additional Covers

Impact DamageTo cover loss or damage by a vehicle or animal not belonging to the Insured

Additional Covers

Aircraft DamageTo cover loss or damage by an aircraft or any articles dropped there from

Additional Covers

Cyclone, Storm and Tempest / FloodTo cover loss or damage by such natural disasters

Additional Covers Exclusion under Cyclone, Storm and

Tempest / Flood

loss or damages caused to boundary fences, boundary walls, gates, goods in open & name boards etc..

Landslides, subsidence, inundation from the Sea Escape water from natural & artificial water course Damage by flood due to Bursting & overflowing of Water tanks Cover against flood will not be accepted without

Cyclone/Strom/ Tempest cover Consequential loss or damage of any kind Excess

Additional Covers Bursting or overflowing of Water tanks,

Apparatus or pipes (BOT)To cover loss or damage to the property insured directly caused by bursting or, overflowing of water tanks, Apparatus or pipes

Additional Covers

Exclusion under BOT

Loss or damage caused whilst the building is untenanted Riot, civil commotion, war, invasion, act of foreign enemy, rebellion, etc…. Due to nuclear weapons material Caused by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste Consequential loss or damage of any kind Water discharged or leaking from any automatic sprinkler

installation

“INSURED HEREBY AGREES TO KEEP THE PROPERTY HEREBY INSURED IN A GOOD AND SUBSTANTIAL STATE

OF REPAIR”

Additional Covers

Earthquake, Fire and shock To cover loss or damage by Earthquake

Additional Covers

Spontaneous CombustionTo cover loss or damage to stocks by its own fermentation or spontaneous ignition

Additional Covers

Other Natural Perils - Tsunami

Additional Covers

Other Natural Perils – Volcanic Eruption

Additional Covers

Other Natural Perils – Typhoon

Additional Covers

Electrical ExtraTo cover loss or damage to electrical appliances by lightning and electrical short-circuiting

Additional Covers Electrical Extra

Damage to electrical installations caused by fire as a result of short-circuiting, arching, self-heating, over-running, excessive pressure or leakage of electricity from whatever cause, including lightning

There must be evidence of sustained fire (burnt marks) to claim under this extension

Full inventory is called for prior to granting of this cover

Clauses

MORTGAGE CLAUSEIn the event of loss or damage, the company will pay the mortgagees or assignees mentioned in the schedule to the extent of their interest

BANK CLAUSE

REINSTATEMENT CLAUSE

REINSTATEMENT CLAUSE

Fire Policies are Contracts of Indemnity –

i. e.

Basis of Settlement =

Value @ the time & place of loss

Depreciation-

Amount payable then be further subjected to AVERAGE and POLICY XS, respectively if

applicable.

Clauses

POSSIBLE SCENARIO

Amount Settled < Cost of Repair/ Replacement

SOLUTION PROVIDED BY THE INSURER

REINSTATEMENT CLAUSE

i.e. Full replacement value @ the time of replacement would be paid – no deduction for

wear and tear/ depreciation

Provided,

1 Applicable to BUILDINGS, FITTINGS, EQUIPMENT, FURNITURE & TOOLS

STOCK, FOODSTUFFS, PACKING MATERIAL etc. are excluded

2 Sum Insured is adequate to cover the FULL REINSTATEMENT COST

3 Property of the SAME KIND/TYPE and NOT SUPERIOR or more EXTENSIVE than the insured property when new

Q. How long would it take to rebuild if my factory goes down?

How much would reconstruction cost?

THE REINSTATEMENT SUM INSURED SHOULD BE FIXED FOR THAT VALUE

Q.

Selection of the Sum Insured under Reinstatement Policies,

FOR MACHINERY

Inflation/ Currency Depreciation

Cost of dismantling + removing the damaged item

Increased cost of importing + duty + transport + erection @ site

Other incidental expenses

Clauses

IDENTIFICATION CLAUSE

REMOVAL OF DEBRIS CLAUSECosts and expenses necessarily incurred by the insured with the consent of the company in; a. Removing debris

b. Dismantling or demolishingof the portion or portions of the aforesaid property destroyed or damaged by fire or by any other peril insured

Clauses

BUILDING IN COURSE OF CONSTRUCTION CLAUSECompany in no case exceed the value at the time of the loss of that part of the building already erected.

LOSS OF RENTCompany will be liable for the payment of rent for such portion of the time as the said building or buildings are actually untenantable following damage by any of the perils insured

Clauses

ARCHITECTS, SURVEYORS AND CONSULTING ENGINEERS FEES CLAUSEPolicy includes and amount in respect of the above necessarily incurred in the reinstatement of the buildings after the loss or damage. Such loss or damage and above fees shall not exceed in the aggregate the sum insured for buildings.

Warranties RETAIL TRADE WARRANTY

No retail trade be carried on in the premises

MANUFACTURE OR DEPOSIT OF MERCHANDISENo portion of the premises herein described be used for the manufacture or deposit of merchandise

NO SMOKINGNo smoking be permitted in the building

Warranties

TRADE WASTE WARRANTYCuttings and other trade waste be swept up bagged daily and removed from the premises at least once a week

Warranties

HAZARDOUS GOODS WARRANTYYou can stored not exceed in all one percent (1%) of the total value of stock

Warranties

STACKING WARRANTYGoods should be stored in such a manner so as to permit easy access to Fire Fighters and that space of three feet should be allowed the top of the stacks and ceiling/roof and a clear space between the walls and stacks

Warranties

STACKING WARRANTY - PHOTOS

Warranties HOT WORK WARRANTY

A “permit to work” system is implemented for all contractors engaged in “hot work” of any kind At least one worker equipped with suitable fire

extinguishers and trained in fire-fighting The area of any “hot work” is examined one hour after the

work has finished “Hot work” should never be carried out in an atmosphere

containing flammable vapours or combustible material or

dust

Warranties

STOCK BOOK WARRANTYStock registers/records & book of accounts have to be properly maintained and audited regularly at least – quarterly, half yearly. Insured shall keep the copy of such documents in a safer place other than the insured premises

Warranties

PALLET WARRANTYThe Insured undertake to store the insured stock on wooden pallets that are at least 4 inches or as stated in the policy schedule, above the ground level.

Warranties

POWER SURGE PROTECTOR WARRANTYInstall a reliable power surge protector to the power supply of the machines/electrical items

• Whether the Policy is effected on indemnity or Reinstatement basis, the SUM INSURED must be ADEQUATE throughout the Policy Period

Average

If not in the event of a claim, the AMOUNT SETTLED will be DOWNWARDLY adjusted as follows:

1. INDEMNITY Policies

2. REINSTATEMENT Policies

SUM INSURED x LOSS

VALUE @ TIME & PLACE OF LOSS

SUM INSURED X LOSS

VALUE @ TIME & PLACE OF REINSTATEMENT

IMPORTANT AREAS

DEDUCTIBLE/ EXCESS (XS)

Insurer sets the XS based on the severity and frequency of the anticipated losses

Example SRCC and terrorism - standard 10% Natural perils – because losses are of

catastrophic nature (very high severity), this cover attracts a higher XS

Electrical extra – because of its both high frequency and high severity, attracts a higher XS

STOCK DECLARATION

To effectively accommodate fluctuating stock levels - applicable to MANUFACTURERS, WHOLESALE DEALERS or IMPORTERS only

Insured to select the Sum Insured by reasonable estimation – MAXIMUM level of anticipated stock level at any given time during the Policy Period

This Estimated Sum Insured will be the Insurer’s MAXIMUM limit of liability

Insurer will charge the initial premium on 75% of the Estimated Sum Insured

Insured to send the MONTHLY DECLARATIONS – within 15-days of close of each month

At the end of the Policy Period, premium will will be adjusted based on the Actual Level of Stock held by the Insured during the Policy Period

Accordingly, either Additional Premium is charged or a Portion of the Initial Deposit Premium is refunded

IMPORTANT AREAS

This means you can only insure something, if they benefit from its existence and will suffer if it ceases to exist. For example you can insure your own vehicle , but not your friend’s vehicle.

In the same way you can take out Assurance on your wife’s life, but not that of your neighbour.

IMPORTANT AREAS

IMPORTANT AREAS

BURGLARY INSURANCE POLICY

INSURANCE CONTRACT

• INSURED (SOFTLOGIC)• INSURER (ASIAN ALLIANCE)• SUBJECT MATTER OF INSURANCE

WHAT ARE WE GOING TO DISCUSS IN FIRE POLICY?

• BASIC COVER • EXCEPTIONS• CONDITIONS• CLAUSES• WARRANTIES

BURGLARY INSURANCE

Standard Burglary policy covers :

Any damage to the premises due to such forcible and violent entry or exit

The property or any part whilst within the premises shall:(a) after actual forcible and violent entry into or exit

from the premises, or(b) following violence or threat thereof to the insured or to any employee of the insured or to any member of the insured’s family, be stolen or damage by thieves, or

BURGLARY INSURANCE

Premises shall mean the premises specified in the schedule exclusive of any garden, yard or open space and any garage, outbuildings etc...

EXCLUSIONS

This policy does not Covered Theft Unexplainable disappearances Strike or riot Fire or explosion Damage to plate glass or any decoration War, invasion, act of foreign enemy, hostilities or warlike

operations, civil war. Riot, military or popular rising, insurrection, rebellion,

revolution Loss or damage occasioned by any person lawfully in the

premises or member of the insured’s household or business staff or any servant of the insured

EXCLUSIONS

This policy does not Covered Cont..... Loss or damage to deeds, bonds, money or coins,

medals, stamps, jewellery, precious stones, article, books, curios, drawing, moulds, unless specially mentioned as insured

Loss of money and/other property from a safe following the use of the key to the safe or any duplicate thereof belonging to the insured, unless such key has been obtained by violence or any threat thereof

Premises are unoccupied period of thirty days Caused by ionising radiations or contamination by

radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste

THIS POLICY AND SCHEDULE SHALL READ TOGETHER AS ONE CONTRACT

Conditions

Conditions

ALTERATIONS MINIMISING LOSS CLAIMS OTHER INSURANCE CHANGE OF INTEREST LIMIT OF LIABILITY AVERAGE CANCELLATION ARBITRATION

Clauses

FIRST LOSS CLAUSEProperty Insured for the first loss value described in the schedule shall at the time of any loss or damage claimable under the policy be collectively or greater value than the full value thereof, then the amount payable under this policy shall be proportionately reduced.

BANK CLAUSE

MORTGAGE CLAUSE

Warranties

STOCK BOOK WARRANTYStock registers/records & book of accounts have to be properly maintained and audited regularly at least – quarterly, half yearly. Insured shall keep the copy of such documents in a safer place other than the insured premises

Warranties

Watchmen/security warranty It is warranted that the premises shall be

guarded by Watchmen and/ or security personnel outside normal business hours.

Thank you form ASIAN ALLIANCE

Rest Assured