Fire Insurance

ON u/w & Claims Settlement

at NCIL, Narendrapur
on 11.01.2014

Fire Underwriting (MD)

All India Fire tariff consists of 8 (eight) sections :
Section I Section II Section III-

Section IV
Section V
Section VI Section VIISection VIII -

General rules & regulations ;

Standard Fire & Special Perils Policy ;
Dewellings, Offices, Hotels, Shops etc.
located outside the compounds of Industrial/
Manufacturing Risks;
Industrial / Manufacturing Risks ;
Utilities located outside the compounds of ndustrial /
Manufacturing Risks;
Storage risks located outside the compounds of
Industrial/ Manufacturing Risks;
Tank Farms/ Gas Holders located outside the
compounds of Industrial/ Manufacturing risks;
Add-on Covers.

Fire Underwriting
Section I - General rules & regulations :
1. Policy
2. Valued Policy/ Policies
3. Long Term Policy/ Policies
4. Mid-term Cover
5. Payment of Premium
6. Minimum Premium
7. Partial Insurance
8. Rates for Short period Insurance
9. Loading for kutcha construction
10.
Rules of cancellations
Contd..

Fire Underwriting

Section I - General rules & regulations :

11.
12.
13.
14.
15.
16.
17.
18.
Estate ;
19.
20.

MID-TERM REVISION IN Sum Insurance ;

Escalation Clause ;
Floater Policy ;
Declaration Policy ;
Floater Declaration Policies ;
Claims Experience Discount / Loading ;
Fire Extinguishing Appliances Discount ;
Rating of Risks in Multiple Occupancy Industrial
Silent Risks ;
Voluntary Deductibles .

SECTION - II
STANDARD FIRE & SPECIAL PERILS POLICY
1.
2.
3.
4.
5.
6.
7.

FIRE
LIGHTNING
EXPLOSION/ IMPLOSION
AIRCRAFT DAMAGE
RSM & TERRORISM DAMAGE
STORM, CYCLONE, TYPHOON, HURRICANE,
TORNADO, FLOOD & INUNDATION (STFI)
IMPACT DAMAGE

SCOPE OF COVER (contd.)

STANDARD FIRE & SPECIAL PERILS POLICY
8.

SUBSIDENCE & LANDSLIDE incl. ROCKSLIDE

9. BURSTING & OVERFLOWING OF WATER

TANKS, APPARATUS & PIPES
10. MISSILE TESTING OPERATIONS
11. LEAKAGE FROM AUTOMATIC SPRINKLER
INSTALLATIONS
12. BUSH FIRE

GENERAL EXCLUSIONS
(The policy does not cover)
1. EXCESS : AOG-5% OF CLAIM, MIN. RS.10,000/OTHERS - RS.10,000/(Please refer current HO Circular dated 17.05.2011 in this
matter)
2. LOSS DUE TO WAR, INVASION etc.
3. LOSS DUE TO IONISING RADIATION etc.
4. LOSS TO INSURED PROPERTY BY POLLUTION OR
CONTAMINATION
5. LOSS TO SPECIFIED ITEMS LIKE BULLION etc.

GENERAL EXCLUSIONS (contd.)

(The policy does not cover)
6. LOSS TO STOCKS DUE TO CHANGE IN TEMPERATURE
IN COLD STORAGE
7. DYNAMO CLAUSE
8. ARCHITECTS & DEBRIS REMOVAL IN
EXCESS OF 3% & 1% OF CLAIM RESP.
9. LOSS OF EARNINGS OTHER CONSEQUENTIAL OR
INDIRECT LOSSES IN NATURE
10. LOSS BY SPOILAGE

GENERAL EXCLUSIONS (contd.)

(The policy does not cover)
11. LOSS BY THEFT DURING OR AFTER INSURED
PERILS
12. LOSS DUE TO EQ., VOLCANIC ERUP OR OTHER
CONVULSIONS OF NATURE
13. LOSS TO PROPERTY IF REMOVED EXCEPT
PLANT & MACHINERY REMOVED FOR REPAIR
ABOVE 60 DAYS

GENERAL CONDITIONS
There are 15 conditions for Standard &
Special Perils Policy. Out of which some
conditions are related to misrepresentation,
non-disclosure of material facts, fraudulent
activities of the Insured, arbitration matter,
re-instatement of the sum insured & etc.

SECTION - III
Dewellings, Offices, Hotels, Shops etc. located outside
the compounds of industrial / manufacturing Risks :
Rule 1. Buildings & Contents of risks shall be rated Per se ;
Rule 2. Stocks belonging to Insured stored in the open area
adjacent to the Insureds premises are held covered;
Rule 3. Incidental Operations such as grinding of lenses in optical
frame shop, polishing & / or varnishing in furniture shop, occasional
repairs etc. are permitted;
Rule 4. For Seasonal storage of crackers, a loading of 10% shall be
charged on the rates applicable to the contents;
Rule 5. Presence of Hazardous goods not exceeding 5% of Total
Value may be ignored;

SECTION - III
Rule 6. Reduction in premium for deletion of STFI & / or RSMTD
Perils at inception of the Policy by reducing 0.15%o & 0.10%o for
STFI & RSMTD respectively.
Rule 7. Pump House, Garage, Compound Wall & ancillary equipment
or other utilities shall carry the respective occupancy rate .
Rule 8. Detached / Segregated Blocks protected by automatic
sprinkler installation as per TAC rules may be allowed 5% reduction
on basic rate.
Rule 9. Long term Policies shall be issued to house / flat owners on
two methods subject to conditions below :
a) Minimum period of 3 years
b) No refund for mid-term cancellation
c) Mid-term inclusion of perils not allowed
d) Premium shall be collected in advance

SECTION IV
Industrial & Manufacturing Risks

Rule 1. Rates provided are for the entire property in the same industrial
compound;
Rule 2. In case of production of more than one product highest rate shall be
charged;
Rule 3. If two or more factories in the same compound if located detached
per se rating shall be applicable;
Rule 4. Dwelling houses in the factory compound shall be rated per se;
Rule 5. In case of any doubt a provisional rate of Rs. 2.50%o may be
charged;
Rule 6. Detached / Segregated blocks within a risk protected by automatic
sprinkler installation shall be allowed 5% reduction in the basic rate;
Rule 7. Reduction for deletion of STFI & RSMTD at the inception of the
Policy is Rs. 0.25%o & Rs. 0.10%o respectively;

SECTION V
Utilities located outside the compounds of
Industrial / Mfg. Risks
Rule 1.

Reduction in premium for deletion of STFI &

RSMTD at the inception of the Policy shall
be Rs. 0.25%o & Rs. 0.10%o respectively;

Rule 2.

Detached/ Segregated blocks protected by

automatic sprinkler installation shall be
allowed 5% deduction in the premium rate.

SECTION VI
Storage Risks located outside the compounds of
Industrial / Mfg. Risks.
Rule 1. Operations such as packings/ selecting/ assorting/ mending/
stitching etc. which do not materially alter the nature of the risks are
allowed to be carried out in premises.
Rule 2. The presence of hazardous goods of higher category not
exceeding 5% of the total value of the stocks may be ignored.
Rule 3. Utilities & Miscellaneous blocks shall be rated at Rs. 1.00%o.
Rule 4. The reduction in premium rates for deletion of STFI ( Materials
in godown & Materials in open ) and RSMTD ( Materials in godown &
Materials in open ) shall be Rs. 0.25%o and Rs. 1.50%o for STFI & Rs.
0.10%o for RSMTD respectively.
Rule 5. Incidental open storage upto 2% of sum insured can be allowed.
Rule 6. Detached / Segregated blocks protected by automatic sprinkler
installation may be allowed 5% reduction on basic rate.

SECTION VII
Tank farms/ Gas Holders located outside the
compound of Industrial/ Mfg. Risks
Rule 1. All Tanks located in the same dyke shall carrying the highest rate
applicable to any one tank overall.
Rule 2. Utilities & Miscellaneous blocks shall be rated at Rs. 1.00%o.
Rule 3. Pumping stations, compressor houses / blower houses etc. shall be
rated at par with the respective Gas holders/ bullets / spares / vessels / tanks.
Rule 4. The reduction in premium rates for deletion of STFI & RSMTD at
the inception shall be Rs. 0.25%o and Rs. 0.10%o respectively.

SECTION VIII
ADD ON COVERS
1.
Architects, Surveyors and Consulting Engineers fees (in
excess of 3% claim amt.)
2.

Removal of Debris (in excess of 1% claim amount)

3.
(A) Detoriation of Stocks in Cold Storage premises due to
accidental power failure consequent to damage at the
premises of Power Station due to an insured peril.
(B) Detoriation of Stocks in Cold Storage premises due to
change in temperature arising out of loss or damage to
the
Cold Storage machinery (ies) in the Insureds
premises due
to operation of Insured peril

SECTION VIII
ADD ON COVERS (CONTD.)
4.

Forest Fire

5.
Impact Damage due to Insureds own Rail/Road
Vehicles,
Fork lifts, Cranes, Stackers and the like and articles
dropped therefrom.
6. Spontaneous Combustion
7. Omission to Insure additions, alteration or extensions

SECTION VIII
ADD ON COVERS (Contd.)
8.

Earthquake (Fire & Shock )

9.

Spoilage Material Damage Cover

10

Leakage & Contamination Cover

11.

Temporary Removal of Stocks

12.

Loss of Rent

13.

Additional Exps. of Rent for an Alternative Accommodation

14.

Start up Expenses.

Terrorism Cover Rates & Terms

Total S . I . Premium on
( MD + LOP )
Total S. I.

Overall ( MD + LOP )
Liability cap per

TSI upto Rs. 1000 cr.

Rs. 0.25 %o ( Industrial risks )
Rs. 0.15 %o ( non-industrial risks )
Rs. 1000 crores
TSI exceeding Rs. 1000 cr. a) Rs. 0.25 %o ( Industrial risks )
but not exceeding Rs.
OR Rs. 0.15 %o (non-industrial risks)
2500 Crores
ON THE FIRST 1000 CRORES
Rs. 1000 crores b) Rs. 0.20 %o ( Industrial risks )
OR Rs. 0.12 %o (non-industrial risks)
ON THE BALANCE TSI
Above Rs. 2500 cr.Balance of Rs. 2500 : 0.15%o (for Industrial)
0.10%o (for Non-Industrial)
.

Location

Business Interruption Policy

The Indemnity under MD Policy does not provide full protection to
the Insured, who may suffer Trading Losses due to total or partial
stoppage of Manufacturing process.
The object of B I Policy is to take care of some of the trading losses.
The Policy covers :
Loss

of GP due to reduction of Turnover / Output

Increase

in cost of working

Contd. ..

Business Interruption Policy

Important definition under BI Policy :
A) Net Profit : Margin of income of the Insured over all
expenses;
B) Standing Charges : Overhead expenses, such as salaries/
wages, taxes, interest & etc. continued to be incurred by the
Insured inspite of the stoppage of the business.
C) Increased Cost of working : Abnormal expenditure incurred
by the Insured to maintain the business as far as possible so that,
loss under Net Profit & Standing Charges can be avoided/
minimised.

Business Interruption Policy

Increase in cost of working :
This is the additional expenditure that has to be incurred
in order to avoid or diminish the reduction in Turnover
following a payable loss under Fire MD section.
Standing Charges :
Interest on loans to travelling expenses, insurance
premium, salaries to permanent staff, office expenses,
contribution to PF Fund, contribution to Gratuity fund,
maintainance of building, plant & machinery,
depreciation ( excluding stocks), auditors fees etc.

Business Interruption Policy

Factors to determine Sum Insured :
The basis for SI is Annual GP
GP shall represent Net Trading Profit + Insured Standing
Charges
The Standing charges which are to be insured have to be
specified
Indemnity Period :
Indemnity period is the maximum period required to put business back
into normal operation after damage to insured property
Indemnity period shall vary from 6 months to 3 years.
Upto an IP of AGP should be the Sum insured. Thereafter GP
should be in proportion to IP selected.

Business Interruption Policy

Additional Cover on payment of additional
Premium :
Suppliers premises
Customers premises
Loss due to accidental failure of public
electricity / gas / water supply

Business Interruption Policy

Proviso for Admissibility of Liability under BI :
1) Fire & Other Perils must occur at the Insureds premises ;
2) Property used for business at the insureds premises must be
destroyed or damaged ;
3) Business must be interrupted or interfered arising out of above
damage ;
4) The Claim under BI Policy will be paid only if the MD Claim
is paid or payable.

Business Interruption Policy

Idea about Basis rate :

1)

The basis rate for BI shall not be less than the 1.25 times the full
Average Fire Rate of the items covering the contents of the process
blocks occupied by the Insured for the purpose of the business.
2)
The contents of storage/ utility blocks even if
they are
communicating with the process block should not be taken into
consideration.
3)
For rating purpose pilot plans & laboratories are taken as a process
blocks.
4)
Where no manufacturing process is carried on, the basis rate shall be
1.25 times of the average fire rate of the contents of the whole premises.
5)
The basis rate for BI Section under Industrial Risks Policy shall also
be computed as above, with a discount of 10% .

Business Interruption Policy

The Policy does not cover :
Loss not admissible under MD section
Depreciation of undamaged stocks after a fire
Cost of preparation of claims
Litigation cost connected with claims
Third Party claims
Failure to recover book debts owing to destruction of records
Loss of goodwill
Loss of Market
Fines & Penalties due to delay fulfilment or cancellation of sale
contract
War or warlike situation
Nuclear power reaction or radiation

Business Interruption Policy

Provision for refund of premium If the insured
declares, at the latest 12 months after the expiry of the
policy, that the GP earned during the accounting
period of 12 months almost concurrent with the policy
period, as certified by the Insureds auditor was less
than the SI thereon, a pro-rata return of premium not
exceeding 50% of the premium paid on such insured
for such period of insurance shall be made in respect
of the difference.

Business Interruption Policy

Calculation for Claim Amount payable :
The loss of profit is measured by comparing the turnover /
output / revenue during the indemnity period with the turnover
during the corresponding period in the previous year ( known
as Standard Turnover)
Hence loss of GP = Rate of Gross profit x Reduction in
Turnover
= Gross profit x Reduction in turnover
Annual Turnover

CLAIM Settlement
Points to be considered during processing of the claim as under :
1)
Insurable Interest
2)
Description of the premises where the loss occurred;
3)
Involvement of Banks / Financial Institution;
4)
Cause of loss;
5)
Application of exclusions if any;
6)
To check the adequacy of the sum insured;
7)
Application of proper depreciation when the settlement is on indemnity
basis;
8)
Verification of completion / confirmation of reinstatement of property
damage;
9)
To check the appropriate adjustment for betterment & modification;
10)
Proper adjustment in stock losses for dead / obsolete items;
11)
To check as to whether proper procedure towards salvage realisation;
12)
Proper checking of the books of accounts;
13)
Collecting of investigating reports from various Govt. Agencies like

Terrorism Cover Rates & Terms

DEDUCTIBLES :

Industrial Risks
&

- 0.5 % of TSI subject to a minimum of Rs. 1 Lac

maximum of Rs. 10.00 crs.

Non industrial Risks

- 0.5 % of TSI subject to a minimum of Rs. 25,000/& maximum of Rs. 10 lacs. Minimum Rs. 10,000/ & maximum of Rs. 5.00 lac (for shops & Resdence)

No mid term cover shall be granted for RSMD and Terrorism cover.

For loss liability limits in excess of Rs. 1000 crores, insurers can obtain rates
from reinsurers.

ADD ON COVERS
1. Architects, Surveyors and Consulting Engineers fees (in excess of
3% claim amt.)
2. Removal of Debris (in excess of 1% claim amount)
3. (A) Detoriation of Stocks in Cold Storage premises due to accidental
power failure consequent to damage at the premises of Power
Station due to an insured peril
(B) Detoriation of Stocks in Cold Storage premises due to change in
temperature arising out of loss or damage to the Cold Storage
machinery (ies) in the Insureds premises due to operation of
Insured peril
.

ADD ON COVERS (contd.)

4. Forest Fire
5. Impact Damage due to Insureds own
Rail/Road Vehicles, Fork lifts, Cranes,
Stackers and the like and articles dropped
therefrom.
6. Spontaneous Combustion
7. Omission to Insure additions, alteration or
extensions

ADD ON COVERS (contd.)

8.
9.
10.
11.
12.
13.

Earthquake (Fire & Shock )

Spoilage Material Damage Cover
Leakage & Contamination Cover
Temporary Removal of Stocks
Loss of Rent
Additional Exps. Of Rent for an Alternative
Accommodation
14. Start up Expenses.
15. Terrorism Cover.

BONUS MALUS SCALE

(RISKS HAVING S.I. ABOVE RS.50 CR.)

Focus - Claims Exps. Not Insurance Co.**
CLMS. RATIO FOR 3 YRS DISC./LOADING%
Upto 5%
-15
Above 5 % & upto 10 %-10
Above 10 % & upto 15 % -05
Above 15 % & upto 30 % nil
Above 30 % & upto 40 %
+2.5
Above 40 % & upto 55 % +5.0
Above 55 % & upto 75 % +10
Above 75 % & upto 100%+15 **
Above 100%
Refer to TAC

FEA DISCOUNT
TYPE OF INSTALLATION

DISCOUNT %

a) H A & Trailer pumps/Fire Engine

b) H A & Hydrant System
c) H A & Independednt Sprinkler/
Fixed Water Spray System
d) Hydrant System + c

2.5
5.0
7.5
10

FEA DISCOUNT
Detached / Segregated block(s) within a risk
which are protected by automatic sprinkler
installation with its own independent
pumping arrangements, etc. as per TACs
rules for sprinkler installation shall be
allowed 5% reduction on the basic rate (s).

Voluntary Deductibles
Deductible amount
AOG Perils
Other Perils
5 % of claim amount
subject to minimum of
Rs. in Million
1
2
4
3
6
10
>10

Discount
(%)

Rs. in Millions

0.5

2
1.0

1.5
3.0
5.0
>5.0

6
8
10
TAC

LONG TERM POLICY FOR DWELLINGS

(House & flat Owners)

Conditions:
Minimum
No

Policy Period - 3 Years

Refund for Mid-term Cancellation

Mid

term Peril inclusion prohibited

Premium

Period

collected upfront for full Policy

Terrorism Cover Rates & Terms

Total S . I .
( MD + LOP )
TSI upto Rs. 200 cr.

TSI exceeding Rs. 200 cr.

but not exceeding Rs.
2000 Crores

Premium on
total S. I.

Overall ( MD + LOP )
Liability cap per
Location

Rs. 0.50 %o ( Industrial risks )

Rs. 0.3 %0 ( non-industrial risks )

Rs. 200 crores

a) Rs. 0.50 %o ( Industrial risks )

OR Rs. 0.30 %o (non-industrial risks)
ON THE FIRST 200 CRORES
Rs. 200 crores

b) Rs. 0.375 %o ( Industrial risks )

OR Rs. 0.225 %o (non-industrial risks)
ON THE BALANCE TSI
.

Terrorism Cover Rates & Terms

(contd.)
Total S . I .
( MD + LOP )

TSI exceeding
Rs. 2000 Crores

Premium on
total S. I.

Overall ( MD + LOP )
Liability cap per
Location

a) Rs. 0.50 %o ( Industrial risks )

OR Rs. 0.30 %o (non-industrial risks)
ON THE FIRST 200 CRORES

b) Rs. 0.375 %o ( Industrial risks )

OR Rs. 0.225 %o (non-industrial risks)
ON THE NEXT RS. 1800 CRORES
c) Rs. 0.30 %o ( Industrial risks )
OR Rs. 0.18 %o (non-industrial risks)
ON THE BALANCE TSI IN EXCESS OF
RS. 2000 CRORES

Rs. 200 crores

Terrorism Cover Rates & Terms

(contd.)

DEDUCTIBLES :

Industrial Risks

Non industrial Risks - 0.5 % of TSI subject to a minimum

of Rs. 25,000/-

No mid term cover shall be granted for RSMD and Terrorism

cover.

For loss liability limits in excess of Rs. 200 crores, insurers can
obtain rates from reinsurers.

- 0.5 % of TSI subject to a minimum

of Rs. 1 Lakh

FIXING SUM INSURED

BUILDING
MARKET

VALUE
REINSTATEMENT VALUE
MACHINERY
MARKET

VALUE
REINSTATEMENT VALUE

FIXING SUM INSURED

STOCKS
RAW MATERIALS -

PROCUREMENT COST
(MARKET VALUE +

FREIGHT, HANDLING
ETC.)
FINISHED PRODUCT -NET MANUFACTURING
COST (R.M. COST +
Processing cost incl.
Overheads)
STOCK-IN-PROCESS - MANUFACTURING COST
TILL THAT STAGE OF
PRODUCTION

LOSS SETTLEMENT
Building, Plant & Machinery
Market value basis :
Gross Assessed Loss
Less Depreciation
Less Salvage
Less Under Insurance
Less Excess
Reinstatement value basis :
Gross Assessed Loss
Less Salvage
Less Under Insurance
Less Excess
Contd.

LOSS SETTLEMENT
STOCK
Market Value basis :
Gross Assessed Loss
Less Salvage
Less Under Insurance
Less Excess

FOCUS ON
MACHINERY INSURANCE

SCOPE OF COVER
COVER AGAINST UNFORSEEN and
SUDDEN DAMAGE DUE TO :
Faulty Material, Design, Construction or
Erection
Vibration, Maladjustment, Malalignment
Defective Lubrication, Loosening of Parts,
Abnormal Stress, Molecular fatigue,
Centrifugal Force

contd.

SCOPE OF COVER
Explosion/ Implosion
Failure of Insulation, Short Circuit
Failure of Connected Machinery or
Protective Devices
Lack of Skill, Carelessness
Malice of Persons
Falling, Impact, Collision and the like
Obstruction or the Entry of Foreign Bodies

SUM INSURED
MANDATORY

REQUIREMENT

CURRENT NEW REPLACEMENT VALUE

INCLUDING FREIGHT TO SITE, CUSTOMS
DUES, INSTALLATION COSTS
OPTIONAL REQUIREMENT

COST OF OIL IN TRANSFORMERS &

FOUNDATION COST

SUPPLEMENTARY COVERS
DAMAGE TO

SURROUNDING PROPERTY
THIRD PARTY LIABILITY (Property &
Personal)
OVERTIME, EXPRESS FREIGHT (Excluding
Air Freight)
AIR FREIGHT
ADDITIONAL CUSTOM DUTY
ESCALATION

RATE & EXCESS

RATE (Generally in %)

Machinery in Cold Storage - Tariff Rating

Machinery in General - Separate Tariff

TARIFF EXCESS

Function of Sum Insured

FAVOURABLE FEATURES
SCHEME

FOR SPECIAL RATING

PROVISION

FOR DISCOUNT FOR

STANDBY/ SPARE EQUIPMENT

SEASONAL

FACTORY DISCOUNT

STANDSTILL

PERIOD DISCOUNT

ELECTRONIC
EQUIPMENT INSURANCE

Electronic Equipment Insurance

EEI Policy is suitable for :-

Computer and allied peripherals,

Medical Equipments,
Electronic Type-Writer,
Photo Type Setting Machine,
Electrnic Control Panels for
Machineries,
Auxiliary Equipments like UPS,
Stabilizer,
Air Conditioner etc.

Electronic Equipment Insurance

EEI Policy should not be granted for :Photo Copy Machine

Dish Antenna
Any portable electronic equipment like laptop
computer, portable sonograph

Electronic Equipment Insurance

Scope of Cover -

The Policy is divided into 3 sections as under :

Section I :Equipments
Section II :External Data Media
Section III :Increased Cost of Working

Electronic Equipment Insurance

SECTION - I
This Section Covers the Equipment against "ALL
RISKS" namely :

Fire, Lightning, Explosion, RSMTD,

Electrical & Mechanical Breakdowns,
Heat, Smoke, Dirt, Foreign Body,
Theft, Burglary, Larceny,
Negligence,Lack of Skill,Carelessness,
AOG Perils,
Failure of A.C. System caused by an insured peril,
Losses from structural damage to
Building etc.

Electronic Equipment Insurance

SECTION II
This Section Covers loss / damage to the External Data
Media caused by any peril as mentioned earlier.
The Cost involved in Reconstituting the Data can also
be covered.

SECTION III
The Increased Cost of Working for use of substitute
EDP equipment following indemnifiable damage to
insured EDP equipments can be covered under this
Section.

Electronic Equipment Insurance

GENERAL EXCLUSIONS :

Inherent vice

Manufacturers Responsibility

Wilful Act

Cessation of work whether total or partial

War perils

Nuclear Perils

Derangement not accompanied by damage

otherwise covered by this policy

Electronic Equipment Insurance

SUM INSURED :

Section I : Equipments

Section II: External Data Media

New Replacement Cost including Freight, Customs Duties &

Erection costs
Cost of Empty Data Media
PLUS
Cost for Reproducing the Lost data

Section III : Increased Cost of Working

Rental Charge of substitute EDP system

Indemnity Limit per Computer Working Hour - (a)

Indemnity Limit of Hours per occurance

- (b)

Aggregate Indemnity Limit per occurance

- (a x b )

Aggregate Indemnity Limit during the period of Insurance

Personnel Expenses - Limits to be Selected
Cost of Transportation - Limits to be Selected

Electronic Equipment Insurance

RATING :Section I :
Individual Equipment having S.I. upto Rs. 1 Lac
Personal Computers : 1.00%
Medical Equipments
: 1.00% with AMC
: 1.00% + 50% loading
if without AMC
Other Equipments
: 1.00%with AMC or
Inhouse maintenance
: 1.00% + 50% loading
otherwise

Electronic Equipment Insurance

Individual Equipment having S.I. above Rs. 1Lac

For having AMC

:
1.00%
For not having AMC but having Inhouse
Maintenance Facility
Personal Computer
:
1.00%
Other Equipments
:
1.00%
Medical Equipments
:
1.00% + 50%
loading
For not having AMC as well as No Inhouse
Maintenance Facility
:
1.00% +
100%(loading)

Electronic Equipment Insurance

ANNUAL MAINTENANCE AGREEMENT

Safety Checks,
Preventive Maintenance
Rectification of Loss or Damage or Faults
arising out of Normal Operation as well as
Ageing

Electronic Equipment Insurance

RATING :
Section II

: 1.00%

Section III : Varies between

0.30% to 1.00%
Depends on Indemnity Period & Time Excess

Electronic Equipment Insurance

SUPPLEMENTARY COVERS
OVERTIME,

Freight)

AIR

EXPRESS FREIGHT (Excluding Air

FREIGHT

ADDITIONAL CUSTOM
ESCALATION

DUTY

Electronic Equipment Insurance

SPECIAL FEATURES :

If the Sum Insured is Rs. 1 Crore and above, located in

a single location, the policy is eligible for Special
Rating. All such proposals should reach R.O. Within 6
months from the date of inception / renewal.

Depending upon the claims experience rates may be

loaded or discount may be allowed.
Contd...

Electronic Equipment Insurance

SPECIAL FEATURES :
The following Discounts can be allowed in Rates if the
equipment are covered under Fire Policy seperately , thereby
deleting the Fire & Allied Perils Cover from EEI Policy :
Equipment covered under EEI policy as also under
Standard Fire & Special Peril Policy and Earthquake : 10 %
Equipment covered under EEI policy as also under
Standard Fire & Special Peril Policy without any one
or two of the additional covers such as STFI or
RSMTD or EQ :
7.50 %
Equipment covered under EEI policy as also under
Standard Fire & Special Peril Policy without STFI and
RSMTD and EQ :
5%

Focus on
Consequential Loss (Fire)
Insurance

PROFIT IS NOT A DIRTY WORD

VARIOUS FORMS OF B I
INSURANCE
MLOP (Machinery

Loss of Profit)
FLOP (Fire Loss of Profit)

MATERIAL DAMAGE
PROVISO
FIRE POLICY

FLOP POLICY

Material Damage

Business Interruption

Insurers liable ?

Liability

Indemnification under
FIRE Policy

Indemnification under
FLOP Policy

SCOPE OF COVER
LOSS OF GROSS PROFIT
(Also covers any Loss Minimising Expenses
upto the costs thereby avoided)
Due to reduction in Turnover
and

INCREASE IN COST OF WORKING

(Subject to limit of Savings in Profit)

Indemnity Period and Time Excess.

Standing Charges.
Turnover.
Annual Turnover.
Standard Turnover.
Gross Profit.
Rate of Gross Profit.

Rating :Basis Rate

Direct Function of the Fire & Specials Perils

Policy Rate.

Basis of Loss Settlement :

Reduction in Turnover

Rate of Gross Profit

Increase Cost of Working

Focus on
MACHINERY LOSS OF PROFIT

Insurance

SCOPE OF COVER
LOSS OF GROSS PROFIT
(Also covers any Loss Minimising Expenses
upto the costs thereby avoided)
Due to reduction in Turnover
and

INCREASE IN COST OF WORKING

(Subject to limit of Savings in Profit)

Indemnity Period and Time Excess.

Standing Charges.
Turnover.
Annual Turnover.
Standard Turnover.
Gross Profit.
Rate of Gross Profit.

Dependent of the following features:

Indemnity Period Selected.
Time Excess Selected.
Relative Importance of machine.
Capacity of Machines.
Inventory of spare parts.
Level of expertise of In-House Repair facility.
Breakdown History.
Imported or Indigenous Origin.

Rating administered by the TAC.

Provisional Rates(Industry dependent)laid down by
TAC-pending their finalization on the factors
mentioned in the previous slide.

We will meet the requirements of

our customers On time, Everytime

Thank You