Majoris

Products


Fire & Special Perils Policy
The meaning of “Fire” and when is there a Loss or Damage said to be caused by Fire

Interestingly Fire is not defined in an Insurance Policy as there isn’t any legal enactment governing Fire Insurance and must be therefore understood in its popular sense.

  • There must be ignition (accompanied with heat &/or flame i.e. some kind Chemical reaction - oxidation/addition of oxygen from air).
  • A loss or damage may be said to be by fire when there has been ignition of insured property which was not intended to be ignited.
  • Or when insured property has been damaged otherwise than by ignition as a direct consequence of the ignition of other property not intended to be ignited.
  • Fire must be accidental and fortuitous in its origin and should not be one that is willfully caused by the Insured
  • Damage caused to Insured property by smoke, sparks, water etc. consequent on ignition of other property are also considered as due to “ Fire “ and “ Damage by Fire”.
  • All incidental losses like water damage while fighting fire, re – fuelling charges of the Fire Extinguishers used to fight fire, etc. are also covered
  • Fire Insurance policy can be taken by the owner of property, Trustees who holds property in trust or in commission; individuals/ financial institutions who have financial interest in the property.
  • Policy can be extended to cover certain additional perils and expenses at additional premium.
  • Certain perils can be deleted with discount in premium rates.
Fire Insurance can be taken for
  • Buildings
  • Plant & Machinery
  • Furniture, Fixtures & Fittings
  • Other Contents
  • Electrical Installations
  • Stocks of Raw Materials & Finished Goods
  • Stocks in Process
  • All immovable and movable property located such as buildings, plant and machinery, furniture, fixtures, fittings and other contents, stocks and stock in process along with goods held in trust or in commission including stocks at suppliers/ customer's premises, machinery temporarily removed from the premises for repairs can be insured provided the locations/premises in the Proposal.
  • Special Types of Policies are designed for Stocks (declaration and floater), Building, and Plant & Machinery keeping in mind the nature of property, proposers' requirements and basis of indemnification.
  • Long Term Policies can be taken for residential Dwellings with suitable discounts in premium.
Basis of Valuation / Measure of Indemnity

Under a Fire Insurance Policy it is the Value of the Property to the Insured which is measured for the purpose of Indemnity. Prima facie it is that value which is measured by reference to the market value of the property before and after the Loss / damage or cost of Reinstatement that is considered as a measure of Indemnity. The contract of Fire Insurance is a contract of Indemnity and therefore the Insured as far as possible, is to be placed in the same position as one was before the Fire loss/ damage, in a position that is neither better off or worse for that matter and in any event the underlying principle is that neither the Insured or Insurer should gain out of the contract.

Who can take an Insurance Policy?
  • Those who have a legal right / equitable / Insurable interest in the property
  • Owners of Building and contents such as house hold articles, furniture etc.
  • Shop Keepers.
  • Educational/ Research Institutions.
  • Hotels, Boarding and Lodgings, Hospitals, Clinics or such service providers.
  • Industrial and Manufacturing Firms.
  • Godown Keepers.
  • Bailees, Lessor, Lessee, Banks, Financial Institutions, Mortgagors, Mortgagees.
  • Traders in stocks.
  • Trustees, Charitable Institutions.
  • Transporters and C & F Agents.
What an Insurance Policy covers?
  • Fire –
  • Lightning
  • Explosion / Implosion
  • Aircraft Damage
  • Riot, Strike & Malicious Damage - RSMD
  • Storm Including Hailstorm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood & Inundation - STFI
  • Impact Damage- Rail/Road Vehicles Or Animals Not Belonging To The Insured / Occupier
  • Subsidence & Landslide / Rockslide
  • Bursting, Overflowing Of Water Tanks, Apparatus & Pipes.
  • Missile Testing Operations
  • Leakage From Automatic Sprinklers
  • Bush Fire – Excluding Forest Fire
  • Excluding Inherent Vice, Undergoing Heating & Drying, Burning Of Property By Public Authority.
Extensions or Add On Covers of Fire Policy
  • Architects, Surveyors and Consulting Engineers Fees (in excess of 3% of claim amount)
  • Debris Removal (in excess of 1% of claim amount)
  • Deterioration of stock in cold storage due to power failures due to an insured peril
  • Deterioration of stocks in cold storage premises due to change in temperature of insured peril
  • Forest Fire
  • Impact damage due to insured's owns vehicles, Forklifts, Cranes, Stackers and the like
  • Spontaneous Combustion
  • Omission to insure addition alterations and extensions
  • Earthquake (Fire & Shock)
  • Spoilage Material Damage Cover
  • Leakage And Contamination Cover
  • Temporary Removal of Stocks
  • Loss of Rent
  • Additional Expenses of Rent for an Alternative Accommodation
  • Start up Expenses
  • Terrorism damage
Clauses
  • Omission to Insure, Alterations, Extensions Clause
  • Temporary Removal of Stocks Clause
  • Re – Instatement Value Clause
  • Agreed Bank Clause
  • Designation Of Property Clause
  • Declaration Clause
  • Floater Clause
  • Floater Declaration Clause
  • Contract Price Insurance Clause
  • Local Authorities Clause
  • Escalation Clause
  • Voluntary Deductible Clause
What the Insurance Policy does Not normally Pay – Exclusions?
  • War perils
  • Nuclear Losses
  • Pollution, Contamination unless caused by insured perils
  • Curios, documents etc. greater than Rs. 10,000/-
  • Goods held in trust or on commission unless specifically covered
  • Change of Temperature (Stocks in cold storage)
  • Pure electrical fires
  • Architects etc. fees (beyond 3% of claim amount)
  • Removal of debris (beyond 1% of claim amount)
  • Consequential losses
  • Spoilage due to cessation of process
  • Theft- during / after loss
  • Earthquake
  • Terrorism Damage

Certain exclusions can be carved back as ADD-On Covers. E.g. Terrorism, Earthquake, Architects Fees (Beyond 3% of claim amount) & Removal of Debris (Beyond 1% of claim amount), Spoilage (Due to Cessation of process), curios /documents etc. Greater than Rs.10, 000/- can be covered for actual value under Miscellaneous Department (Subject to Declaration).

Policy Excess /Deductibles:
  • For Policies having Sum Inured Upto Rs.100, 000,000/- Per Location:
    • 5% of Claim Amount Subject to a Minimum of Rs. 10,000/-
  • For Policies having Sum Insured above Rs.100,000,000/- & Upto Rs.1,000,000,000/- Per Location:
    • 5% of Claim Amount Subject to a Minimum of Rs. 25,000/-
  • For Policies having Sum Insured above Rs.1,000,000,000/- & Upto Rs.15,000,000,000/- Per Location:
    • 5% of Claim Amount Subject to a Minimum of Rs. 500,000/-
  • For Policies having Sum Insured above Rs.15,000,000,000/- & Upto Rs.25,000,000,000/- Per Location:
    • 5% of Claim Amount Subject to a Minimum of Rs. 2,500,000/-
  • For Policies having Sum Insured above Rs.25,000,000,000/- Per Location:
    • 5% of Claim Amount Subject to a Minimum of Rs. 5,000,000/-
Burglary Insurance

This policy covers contents of business premises/ House against the risk of loss or damage by burglary and house breaking. The property that can be covered are Stock - in - trade; Goods -in- trust or on commission for which the insured is responsible; Fixtures, Fittings and utensils in trade; Cash and currency notes secured in locked safe.

What Policy Covers

  • Loss or damage by burglary or attempted burglary
  • Damage caused to the premises by burglar is also covered

“Property” means assets, machinery, equipment, furniture, fixtures and fittings, electrical installations and stock and stock-in-trade in the Insured’s premises described in the Schedule to this Policy including items contained therein for which the Insured is accountable.

“Property Damage” means actual physical damage to the Insured Premises caused by actual or attempted Housebreaking

"Burglary or Housebreaking” means a criminal trespass effected by forcible, Violent & Visible means to gain entry to into or exit from the premises.

"Theft” means the dishonest misappropriation of Insured’s property with the intention of permanently depriving the Insured of the property by the person or persons other than the insured’s employees or their representatives acting on behalf of the insured. (Theft is an optional cover under the policy and needs to be specifically opted for by payment of additional premium)

“Robbery” means the theft of contents at the insured premises using unforeseen, aggressive and violent means against the insured and / or their employees.

“Hold-up” means forcible removal by actual or threatened violence against the Insured or Employee(s) of the Insured.

“Money” means Cash, current coins, Bank and Currency Notes, Cheques, Postal Order, Current postage stamps which are not part of a collection and luncheon Voucher.


Who can take?

  • Those who have equitable interest in the property
  • Owners of Building and contents such as house hold articles, furniture etc.
  • Shop Keepers.
  • Educational/ Research Institutions.
  • Hotels, Boarding and Lodgings, Hospitals, Clinics or such service providers.
  • Industrial and Manufacturing Firms.
  • Godown Keepers.
  • Traders in stocks.
  • Trustees, Charitable Institutions.
  • Transporters and C & F Agents.
Types of Burglary Policies

  • Specific Policy
  • Full Value Insurance
  • First Loss Insurance
  • Stock Floater Policies
  • Stock Declaration Policies
Extensions or Add On Covers of Fire Policy

  • Riot, Strike & Malicious Damage – RSMD
  • Terrorism Damage
  • Theft Extension
What Policy does not Pay – Exclusions

  • War perils & nuclear perils
  • By using authorized keys unless obtained by threat or assault.
  • Caused or aggravated or assisted by the insured, his family, and his employees.
  • Consequential loss
  • Goods held in trust unless specifically declared.
  • Recoverable under other policies
  • Loss after material alterations
Policy Excess /Deductable

  • For Normal Claim:
    • 5% of Claim Amount subject to minimum of Rs. 5,000/- from each and every claim.
  • For Theft Claims:
    • 5% of Claim Amount subject to minimum of Rs. 10,000/- from each and every claim.
Overseas Mediclaim Policy
Who is covered?

For Indian Residents traveling abroad (Coverage starts from time you alight the International Flight and return to India) and Corporate Frequent Travelers.

What are covered?
  • 1. Fire excluding destruction or damage caused to the property by Its own fermentation, natural heating or spontaneous combustion Its undergoing any heating or drying process Or by burning of property insured by order of any public authority
  • 2. Lightning
  • 3. Explosion/Implosion
  • 4. Aircraft damage
  • 5. Riot, strike, malicious and terrorism damage
  • 6. Storm, Cyclone, Typhoon, Hurricane, Tornado, Flood and Inundation
  • 7. Impact damages
  • 8. Subsidence and Landslide including rock slide
  • 9. Bursting and or overflowing of water tanks, apparatus and pipes
  • 10. Missile testing operations
  • 11. Leakage from automatic sprinkler installations
  • 12. Bush fire.
Majoris