Fire Insurance in India.

1. Fire definition – Actual ignition under accidental circumstances is known as Fire.
2. Fire business has been detariffed from 1st January, 2007.
3. Standard Fire and Special Perils Policy with the permitted “Add-on” covers if any can be issued.
4. Storm, Tempest, Flood and Inundation group of perils and/or Riot, Strike, Malicious Damage perils at inception of of the policy can be excluded from the scope of the policy.
5. Any risk which has not been provided for in the Tariff shall be referred to the Committee for Rating. Provisional rate of Rs. 2.50%0 shall be charged.
6. Valued policies are not issued in Fire, however it can be issued in the case of Curious, Works of Art, Manuscripts, Obsolete Machinery and the like subject to the valuation certificate being submitted and found acceptable by the insurer.
7. Minimum premium per policy is Rs.100-00 except for risks rateable under Sec.III.
8. Minimum premium for Tiny sector Industries is Rs. 50-00 per policy.
9. If the Policy is taken for a period not exceeding 15 days 10% of the annual rate is charged.
10. If the Policy is taken for a period not exceeding 1 month 15% of the annual rate is charged.
11. If the Policy is taken for exceeding 9 months, the full annual rate is charged.
12. Generally Midterm is not permissible to grant mid-term cover for STFI perils. However, it can be taken but the risk will start after 15 days from the date of receipt of premium in cash.
13. Partial Insurance is not allowed in Fire Insurance except in a particular machinery such as Boiler.
14. Standard Fire and Special Perils Policy covers 12 perils. FIRE, LIGHTENING, EXPLOSION/IMPLOSION, AIRCRAFT DAMAGE, STORM & ALLIED PERILS, IMPACT DAMAGE, SUBSIDENCE AND LANDLISED INCLUDING ROCK SLIDE, BURSTING AND/OR OVERFLOWING OF WATER TANKS APPARATUS AND PIPES, MISSILE TESTING OPERATIONS, LEAKAGE OF AUTMATIC SPRINKLER INSTALLATIONS, BUSH FIRE
15. There are 15 add on covers which can covered upon payment of extra premium. A) ARCHITECTS, SURVEYORS AND CONSULTING ENGINEERS FESS B) REMOVAL OF DEBIRS C) DETERIORATION OF STOCKS D) FOREST FIRE E) IMPACT DAMAGE F) OMISSION TO INSURE ADDITIONS, ALTERATIONS OR EXTENSION H) EARTHQUAKE (FIRE & SHOCK) I) SPOILAGE MATERIAL DAMAGE COVER J) LEAKAGE AND CONTIMATION COVER K) TEMPORARY REMOVAL OF STOCKS CLAUSE L) LOSS OF RENT CLAUSE M) INSURANCE OF ADDITIONAL EXPENSES OF RENT FOR AN ALTERNAT