(Compiled by Ms B Ramaprabha,Asst Manager,Uiic,Madurai)
1) TRANSFER OF RISK IS CALLED INSURANCE 2) FIRE COVERS 12 PERILS 3) FIRE MEANS… OTHER THAN SPONTANEOUS COMBUSTION, OTHER THAN SUBSTANCE OF INHERENT IN NATURE, OTHER THAN OWN FERMENTATION 4) WE CAN AVOID , FIRE, BY REMOVING SOURCE OF IGNITION. 5) EXPLOSION/IMPLOSION (OTHER THAN INDUSTRIAL BOILER)..MEANS ONLY DOMESTIC BOILER IS COVERED 6) SPONTANEOUS COMBUSTION 2 TYPES: NON FIRE DAMAGES & FIRE DAMAGES 7) SPRINKLER INSTALLATION DAMAGE DUE TO REPAIRING OF BUILDING NEARBY IS NOT PAYABLE IN FIRE CLAIM 8) WE CANNOT REDUCE THE NUMBER OF PERILS NOT BELOW 10 (EVEN IT IS DETARIFF) 9) FIRE DETARIFF FROM : 01.01.2007 *PRICE REDUCTION IS DONE 10) FROM -1.4.08 – PRODUCT VARIATION 11) CASH – SPECIFICALLY MENTIONED ONLY IS COVERED 12) SUM INSURED IN FIRE : MARKET VALUE 13) WE CANNOT INSURED FOR : CAPITAL COST (IT SHOULD INCLUDE LAND VALUE ALSO) 14) WE CANNOT INSURED FOR : BOOK VALUE/AUDITED ACCOUNTS COST ALSO 15) FIRE POLICY COVERS ONLY SUPERSTRUCTURE OF THE BUILDING 16) STOCKS INSURED BY INVOICE VALUE 17) FIRE POLICY CAN BE INSURED AS VALUED POLICY FOR : VERY OLD MACHINERY … MEANS MARKET VALUE CANNOT BE ASCERTAINED. 18) PROPORTIONATE PREMIUM : MEANS.. PRO-RATA PREMIUM 19) CANCELLATION IN FIRE POLICY: 15 DAYS NOTICE PERIOD 20) INSURED SHOULD INTIMATE THE INSURER TO REINSTATE OR REPAIR(WITHIN 30 DAYS) 21) ARBITRATION CLAUSE ARISES ONLY IF LIABILITY IS ADMITTED 22) DIFF. IN DISPUTES IN QUANTUM ONLY REFERRED TO ARBITRATION 23) ELECL. INSTALLATION… FORMING PART OF BUILDING SUM INSURED 24) PROFIT PORTION NOT TO BE INCLUDED IN SFPP 25) LOCAL AUTHORITIES CLAUSE INCLUDES: SOLAR PANEL/RAIN WATER HARVESTING 26) RIV POLICY : MODIFIED INDEMNITY POLICY 27) ESCALATION CAN BE GIVEN INCONJUCTION WITH RIV POLICY: FALSE 28) IN BOTH RIV & ESCALATION: ..NO STOCK IS COVERED 29) ESCALATION SUM: SUM INSURED: RS.10,00,000 , ESC: 25% 25/100 X 10,00,000 = 250000 .. PREMIUM CHARGED AS 50% OF APPLICABLE RATE 30) IN RIV POLICY : UNDER INSURANCE APPLICABLE (MEANS ADEQUATE SI TO BE MENTIONED) 31) RIV & ESCALATION APPLICABLE TO : B/P/M/F/F 32) DECLARATION POLICY: ONLY FOR STOCKS 33) DECLN. POLICY CANNOT BE GIVEN TO: ● STOCK IN RETAIN SHOP ● STOCK RAILWAY SLIDING/IN PROCESS/ FLUCTUATION IN STOCKS 34) BASIS OF DECLARATION: HIGHEST VALUE IN ANY DAY OF THE MONTH. 35) FLOATER DECLN. POLICY: GIVEN TO FREQUENT FLUCTUATION IN STOCK VALUE 36) IF 8TH MONTH IS LOSS: DECLARATION FOR 6TH MONTH DECLARATION TO BE TAKEN BECAUSE, 7TH MONTH DECLARATION WILL REACH INSURER BY THE END OF SUCEEDING MONTH 37) FOR INCREASE IN SUM INSURED: PRO-RATA PREMIUM IS COLLECTED 38) FOR DECREASE IN SUM INSURED: SHORT PERIOD PREMIUM IS RETAINED AND BALANCE IS REFUNDED TO THE INSURED 39) IN FLOATER DECLARATION POLICY: DIFFERENT OCCUPANCY IN ONE LOCATION, ONLY HIGHEST RATE IS CHARGED 40) DESIGNATION OF PROPERTY CLAUSE IS AVAILABLE ON NO ADDL PREMIUM 41) WHICH AFFECTS RATE OF FIRE POLICY ● OCCUPANCY ● CONSTRUCTION ● CLAIM EXPERIENCE ● FEA ● STFI/RSMD EXCLUSIONS 42) PAID UP CAPITAL DISCOUNT AVAILABLE IN FIRE POLICY BY SOME INSURER 43) TAT ✓ FIRE CLAIM INTIMATION SHOULD BE WITHIN 14 DAYS ✓ CLAIMS DOCUMENTS SHOULD BE SUBMITTED WITHIN 15 DAYS ✓ INSURED SHOULD INTIMATE THE INSURER TO REINSTATE OR REPAIR(WITHIN 30 DAYS) ✓ CANCELLATION IN FIRE POLICY: 15 DAYS NOTICE PERIOD 44) TO REDUCE PREMIUM IN FIRE: ✓ TAKE DESIGNATION OF PROPERTY CLAUSE (NO ADDL PREMIUM) ✓ OMMISSION TO INSURE, ADDITION , ALTERATION CLAUSE ( WITH THIS WE CAN WAIVE 5% OF SUM INSURED CAN BE WAIVED) ✓ BY TAKING DECLN. POLICY ✓ CAN REDUCE SI FOR PLINTH AND FOUNDATION ✓ BY RI ARRANGEMENT. 45) TO ARRIVE PML : TAKE CONSIDERATION BOTH MD & LOP PORTION PUT TOGETHER. 46) DIFFERENCE BETWEEN LOSS OF RENT & ALTERNATIVE ACCOMMODATION OF RENT LOSS OF RENT ALTERNATIVE ACCOMMODATION OF RENT OWNER ONLY CAN TAKE BOTH OWNER & TENANT CAN TAKE DIFF. BETWEEN ORIGINAL RENT &NEW RENT ONLY PAID NEW PREMISES WILL BE IN SAME LOCATION 47) HOW TO ARRIVE SCRAP VALUE IF ALL DOCUMENTS VANISHED IN DIASTER:? ✓ IF SALES DONE… BY WAY OF SALES TAX ✓ IF PURCHASE … BY WAY OF INVOICE VALUE 48) LOSS OF PROFIT: EXPENSES CAN BE : 1) FIXED/STANDING CHARGES 2) VARIABLE CHARGES 49) INCREASED COST OF WORKING: INCLUDES ✓ RENT FOR ALTERNATIVE PREMISES ✓ OVERTIME FOR MANPOWER ✓ HIRING OF MACHINERY 50) PROPERTY TAX IS INCLUDED IN (STANDING CHARGES) 51) INCOME TAX INCLUDED IN NET PROFIT 52) IN IAR POLICY : EXCLUDED CAUSES… GROWING CROPS/ROADS ETC 53) IN IAR POLICY: FLOP IS COMPULSORY & MLOP IS OPTIONAL 54) IN IAR POLICY: UNDER INSURANCE UPTO 15% ALLOWED. IF MORE THAN 15% NO UI CONCEPT 55) IN IAR POLICY: THE FOLLOWING ARE PAYABLE ✓ HUMAN ERROR ✓ FAILURE OF SAFETY DEVISE ✓ INSTALLATION ✓ AOG PERILS ✓ HANDLING CHARGES 56) IF MORE THAN 50% CIVIL WORKS: CAR POLICY 57) IF MORE THAN 50% ERECTION WORKS: EAR POLICY 58) TESTING ONLY DIFFERENCE BETWEEN : CAR & EAR POLICY 59) PROJECT PERIOD IN ENGG. POLICY : IS CALLED: POLICY PERIOD 60) MIN.PERIOD IN CAR POLICY: 3 MONTHS 61) MIN.PERIOD IN EAR POLICY: 2 MONTHS 62) VALUE: COMPLETED ERECTED VALUE OF THE PROJECT 63) CAR CAN BE TAKEN BY : OWNER/PRINCIPAL/CONTRACTOR/FINANCIER 64) INSTALMENT PREMIUM IN ENGG. POLICIES
✓ 3 MONTHS ( INTERVAL BETWEEN INSTALMENT+
✓ 6 MONTHS ( ATLEAST 6 MONTHS BEFORE EXPIRY OF THE POLICY PERIOD) ✓ IF PROJECT EXCEEDS 12 MONTHS ✓ 3 … 6….12 65) EAR POLICY HAS 4 EXCESS: CAR POLICY HAS 3 EXCESS: ✓ STORAGE STORAGE ✓ ERECTION ERECTION ✓ TESTING …. ✓ AOG/MAJOR PERILS AOG/MAJOR PERILS 66) ENGINEERING POLICY : PREMIUM DEPENDS ON: ✓ SUM INSURED ✓ OCCUPANCY ✓ EXPOSURE ✓ SPL. CHARACTERISTIC OF BUILDING 67) CONTRACT PRICE + DUTY + TAX + FREIGHT 68) CROSS LIABILITY IS ADVANCED VERSION OF TP LIABILITY☹ EITHER IN PART OF PRINCIPAL/CONTRACTOR/SUB-CONTRACTOR) 69) OPERATION POLICIES ARE CALLED ANNUAL POLICIES: MBD / EEI / CPM / BPP / DOS 70) ACCIDENT SHOULD BE ✓ SUPA ✓ SUDDEN ✓ UNFORESEEN ✓ PHYSICAL ✓ ACCIDENTAL ✓ (WHEN THE MACHINERY IS @ REST / DISMANTLING/CLEANING /OVERHAULING) 71) IN MBD – 2 TYPES OF CLAIM SETTLEMENT 72) 1) REPAIR COST 2) TOTAL LOSS ( INDEMNITY BASIS) IN BOTH CASES: DEPRECIATION IS APPLIED BUT IN REPAIR COST : DEPRECIATION FOR LIMITED LIFE PARTS 73) CPM POLICY RELATES TO CLASS D VEHICLES OF MOTOR VEHICLES: 74) DIFF. BETWEEN CPM &MOTOR POLICIES IS IN CPM IN CLASS D VEHICLES CLAIM @ INSURED PREMISES CLAIM @ ROAD IS PAYABLE 75) COMBINED WITH LOP + MBD =➔ MLOP 76) PROJECT LOP : ALOP 77) MCE ; -→ MARINE + EAR ( MARINE: 50% EXCESS / EAR : 50% EXCESS) 78) DELAY IN MCE POLICY : DELAY IN START UP POLICY 79) IN ENGG POLICY: ● INCREASE & DECREASE IN PRIME COST OF MACHINERY NOT TO BE TAKEN INTO ACCOUNT ● IF ESCALATION CHOSEN.. NO REFUND IS ALLOWED IN ESC. SI ● IF COST INCREASED, EXTRA INCREASE INPREMIUM ● ACD – ADDL. CUSTOMS DUTY CANNOT BE REINSTATED (IN EAR) ● INBUILT COVER FOR TESTING PERIOD: 1 MONTH ● ALL PROJECT POLICIES: MAX 12M ● THERMAL PLANTS: 6 MONTHS 80) REFUND OF PREMIUM ALLOWED FOR EARLY COMPLETION: ● PERIOD OF INSURANCE: POI SHOULD BE GREATER THAN 18 M ● CLAIM EXPERIENCE < 60% ● MIN. PERIOD FOR CLAIMING REFUND IS 3 M 81) IMPORTANT EXCLUSION BETWEEN CAR & EAR CAR EAR FAULTY DESIGN FAULTY DESIGN/DEFECTIVE WORKMANSHIP/
DEFECTIVE MATERIALS
82) IMPORTANT EXCLUSION IN CAR POLICY: BREAKAGE OF GLASS – ADD ON
83) CPM IS EXTENSION OF CAR/EAR 84) EXCESS IS APPLICABLE PER INCIDENT 85) SEPARATE INCIDENT: FREEDOM FROM PERILS FOR 7 CONSECUTIVE DAYS 86) TERRORISM IS NOT MAJOR PERIL 87) TEST RUN IN THERMAL POWER PLANT:
● STARTING OF TESTING PERIOD
● DATE OF SYNCHRONISATION OF TD SET WITH THE GRID SYSTEM
● PROVIDED SYNCHRONISATION IS WITHIN 72 HOURS FROM THE DT. OF INTRODUCTION
OF STEAM OR DT. OF INTRODUCTION OF STEAM 88) FOR LIGHTNING: DIRECT EFFECT OF LIGHTNING: COVERED UNDER SFPP 89) FOR LIGHTNING: INDIRECT EFFECT COVERED IN MBD 90) EXPLOSION: DAMAGE TO BOILER TO TP – NOT COVERED 91) 5 TYPES OF MACHINERIES ARE COVERED IN CPM