Standard Fire Policy (POLICY CONDITIONS (Condition policy (condition of…
Standard Fire Policy
condition of what the insured ought or ought not to do that had been stated by insurer.
OFFER AND ACCEPTANCE
It is a prerequisite to any contract.
PAYMENT OF PREMIUM
The policyholder must ensure that the premium is paid well in advance so that the risk can be covered.
CONTRACT OF INDEMNITY
a security against loss or damage
UTMOST GOOD FAITH
The policyholder must disclose all the relevant information to the insurance company while insuring their property.
The fire insurance will be valid only if the person who is insuring the property is owner or having insurable interest in that property
If a person insured his property with two insurance companies, then in case of fire loss both the insurance companies will pay the loss to the owner proportionately.
PERIOD OF FIRE INSURANCE
will not exceed by one year
If a property is damaged or loss occurs due to fire because of deliberate act of the policyholder, then that damage or loss will not be covered under the policy.
To get the compensation under fire insurance, the insured must inform the insurance company immediately so that the insurance company can take necessary steps to determine the loss.
The property that do not be covered unless they are show in the schedule as being covered
Precious Stone Unless These Items Are Stock : Furs, Jewelry, Gold, Silver, Platinum, Pearls,Diamonds, Sapphires, Rubies
Money : Any type of Currency, Cheque, Money Order
Glass : Unless It Directly Damage By Insured Peril
Animals In The Building : Others than stock
CLAUSES AND EXTENSIONS FIRE INSURANCE RATING
CLAUSE : PROVISION IN AN INSURANCE POLICY THAT STIPULATES THE RISKS ASSUMED BY THE
ENDORSEMENT : Changes in the policy that initiate by the policyholder
WARRANTIES : An undertaking by the insured to the insurers that he will ( or will not) do a certain thing, or that certain facts are stated.
EXTENSION : Extension insurance needs to cater for both the existing elements of the property that’s being extended and all the new extension works that go into the process.
Additional perils :
Riot Or Civil
A fire insurance policy covers all properties either it moveable or immovable, against various perils.
BUILDING : Dwelling, Factories, Offices, Shopping Complex
CONTENTS : Plants And Machinery, Furniture, Fittings And Fixture,Office Equipment And Tools, Plan And Documents
STOCKS : Raw Materials, Finished And Unfinished Goods,
BASIS ADEQUENCY OF SUM INSURED (Premium payable for the Insurance Policy)
FIRE TARIFF :
QUOTATION that determine the premium rates which insurance companies can charge consumers for insurance products sold by them
MARKET VALUE (Sum Insured)
Cost of construction construction of building building should be taken and then the depreciation for age and usage deducted.
The basis of loss settlement is the value of new property
without taking any depreciation into account.
It enables the owner to replace his property without any financial strain on his own resources and is quite commonly taken by industrialists and building owners.
DAY ONE REINSTATEMENT BASIS
Declared as at the first day of the insurance
Economical and safe ways to avoid under insurance.
Insured perils is a source of damage/loss which covered by insurance policy
SITUATION that must present before the insurance company will pay out any claims to the insured parties
DEFINITION OF EXCLUDE PERILS
Insurance Company Does Not Bear The Responsibility Of Providing Financial Relief
Eliminates Coverage For Certain Acts, Property, Types Of Damage Or Location
Perils that can be added to standard policy to widen its scope
Perils that not be stated in the policy but can be requested with an additional premium
Nearly accurate so proximate cause is key principle of insurance and is concerned with how the loss or damage actually occurred and whether it is indeed as a result of an insured peril
SCOPE OF COVER : Lightning, Fire , Domestic Explosion