What does the Fire Policy cover:

This is a package insurance which covers the following set of perils:

• Fire.
• Lightning.
• Explosion / Implosion.
• Aircraft damage.
• Riot, Strike, Malicious damage (RSMD Perils).
• Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon and Tornado (STFI).
• Impact by any Rail/ Road vehicle or animal belonging to third parties.
• Subsidence / Landslide including rockslide.
• Bursting and / or overflowing of water tanks, apparatus.
• Leakage form Automatic Sprinkler Installation.
• Missile Testing Operation.
• Pollution or contamination resulting from any of the above perils.
• Any insured peril resulting from pollution and contamination.
• Bush Fire.

Additional In‐Built Covers:

• Architects, Surveyors and Consulting Engineers’ Fees up to 3 % of the claim amount.
• Expenses incurred for removal of debris to clear the site up to 1 % of the claim amount.
• Machinery and equipment temporarily removed for repairs, cleaning, renovation or other similar purposes for a period of 60 days.

Period of Insurance:

• Fire Policy is an annual policy with period of insurance being 12 months.
• Long Term policy is available for Residential Dwelling at a discounted premium.

What the policy will not pay:

• Expenses incurred on Architects, Surveyors’ Consultant Engineers fees and
  Debris Removal in excess of 3% and 1% of claim amount respectively.
• Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind.
• If the building insured or containing the insured property becomes unoccupied and so remains for a period of more than 30 days.
• Loss or damage caused to insured property by its own fermentation, natural
  heating or spontaneous combustion.
• Loss or damage caused to insured property by its undergoing any heating
• War and allied perils
• Nuclear and allied perils
• Pollution or Contamination
• Aircraft’ damage arising out of pressure waves
• Loss by theft during or after the occurrence of any insured peril
• Riot, Strike or Malicious Damage losses
• Costal or river erosion
• Forest Fire

Items not covered under Fire Policy:

• Bullion or unset precious stones, any curios or works of art for an amount exceeding Rs.10000/‐, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives, manuscripts etc.
• Cold storage stocks due to change of temperature. – add on cover is available.
• Loss / damage/ destruction of any electrical and/or electronic machine, apparatus, fixture or fitting arising from over running, excessive pressure,  short circuiting, arcing, self heating or leakage of electricity, from whatever cause (including lightning).
• Loss / damage / destruction of Boilers, Economisers or other Vessels,
  machinery or apparatus in which steam is generated, by its own explosion/
  implosion.

Add on covers on payment of additional premium:

• Deterioration of Stocks in Cold Storage premises due to power failure following damage due to an insured peril. 
• Forest Fire.
• Impact Damage due to Insured’s own Vehicles, Fork lifts and the like.
• Spontaneous Combustion.
• Omission to insure additions, alterations or extensions.
• Earthquake (Fire and Shock). – Built-in cover for sum insured up to Rs.50  Crores.
• Spoilage material damage cover.
• Leakage and contamination cover.
• Temporary removal of stocks.
• Terrorism.
• Start up expenses.

How the sum insured should be arrived at:

• Property can be insured on depreciated cost (market value) or replacement cost basis.
• In order to get better protection, insurance on reinstatement (replacement) basis is recommended. The sum insured selected should be adequate for reinstatement. 
• In case the value of a property may increase due to factors like increase in prime cost, Exchange rate etc. during the currency of the policy, the corresponding sum insured may be increased up to 25% maximum by opting for the ‘Escalation Extension’. 
• Similarly, any reduction in sum insured during currency may be effected for which refund of premium will be allowed on short period basis.
• Following guidelines, though not exhaustive, are provided for arriving at the sums to be insured for various properties.

Underinsurance:

• If the declared sum insured is found to be less than the value of the property insured, then the claim amount is proportionately reduced. For example: Rs.10 lakhs and is declared as Rs.5 lakhs and a fire accident loss of Rs. 5 lakhs was reported; the claim payable will be Rs.2.50 lakhs (5 x 5/10 = 2.50)
• Hence, fixing of sum insured should be done in an objective manner so as to ensure that the sum insured is adequate on all aspects

Claim Process

• Immediately intimate loss / damage to the broker.
• Broker will advise insurance company to depute an independent Surveyor for physical inspection of the damaged property and assess the quantum of financial loss.
• Take all steps to minimise the loss, as if no insurance has been taken.
• Submit an estimate of loss, item wise that was damaged by insured perils.
• Give an account of all properties damaged or destroyed with estimated amounts. 
• All the necessary documents in support of the claim should be furnished to the surveyor to enable the surveyor to complete the lost assessment.
• Details of any other insurance in respect of the damaged property to be furnished.

Claim Documentation

• Copy of Claim intimation.
• Claim form duly complete in all respects and signed by the authorised signatory.
• Police First Information Report where ever required – strike, riot, malicious damage etc.
• Fire Brigade Report.
• Photographs/ video of damaged property clearly showing extent of damage.
• An extract of the asset register and purchase bill to be furnished to the surveyor to prove ownership of property.
• In respect of Stocks – stock register should be shown to the surveyor.
• Newspaper clipping / Meteorological report – applicable for loss/damage claims arising out of Flood, Storm, Cyclone, Earthquake, Subsidence/ Landslide