Tarif

INTRODUCTION
THIS IS AN UPDATED VERSION OF THE ALL INDIA FIRE TARIFF OF

THE TARIFF ADVISORY COMMITTEE. CIRCULARS AND INSTRUC-
TIONS ISSUED BY THE COMMITTEE TILL DATE HAVE BEEN
INCORPORATED HEREIN. THIS IS STRICTLY FOR PRIVATE
CIRCULATION ONLY AND NOT FOR DISTRIBUTION TO CLIENTS,
AGENTS AND INTERMEDIARIES.
THE CIRCULARS WITH THEIR RESPECTIVE REFERENCES HAVE

BEEN BOXED AND SHOWN IN ITALICS TO DISTIGUISH THEM FROM
THE GENERAL TEXT. PLEASE NOTE THAT THESE AMENDMENTS
SUPERCEDE THE EXISTING TARIFF PROVISIONS WHEREVER
APPLICABLE.
PROPERTY & ENGG DEPT.,

HEAD OFFICE, CHENNAI.
31.05.2005
Version III
1
INDEX
ALL INDIA FIRE TARIFF

INDEX
PAGE NO.
SECTIONS CONTENTS
I General rules & regulations 3
II Standard fire and special perils policy form 38
Dwellings, offices, hotels, shops, etc.,

III located outside the compounds of 48
industrial/manufacturing risks
IV Industrial/manufacturing risks 56
V Utilities located outside the compounds 75

of industrial/manufacturing risks
VI Storage risks outside the compounds of 79

industrial/manufacturing risks
VII Tank farms/gas holders outside the 83

compounds of industrial/ manufacturing
risks
VIII Add – on covers 84
VIII Classification of Earthquake Zones - 89

District wise
ANNEXURE ‘A’ Standard clauses 96
ANNEXURE ‘B’ Standard proposal form 122
ANNEXURE ‘C’ List of Hazardous Goods 132
2
SECTION - 1
SECTION I
GENERAL RULES & REGULATIONS
These rules and regulations are applicable to all sections of this Tariff.
1. POLICY
a) Only Standard Fire and Special Perils Policy (hereinafter referred to as

Policy) with the permitted “Add- on” covers (as appearing under Section
VIII) iany, can be issued.
Note:- Unless otherwise specifically provided for, this tariff is applicable

to land-based properties only.
b) The wordings of the policy shall be as shown in Section II of the Tariff.
c) Policy(ies) should be read together with proposal form(s), schedule,

specification, endorsements, warranties and clauses as one contract.
d) Policy(ies) covering Buildings and/or contents shall show blockwise

separate amounts on (i) Building (ii) Machinery and accessories
(iii) Stock and Stock-in-Process and (iv) Furniture and other contents.
e) It is permissible to exclude Storm, Tempest, Flood and Inundation group

of perils (hereinafter referred to as STFI) and/or Riot, Strike and Malicious
Damage perils (hereinafter referred to as RSMD) at inception of the Policy
only by deleting the relevant perils from the Policy. The deletion shall
apply for the entire property in one complex/ compound /location
covering the entire interest of the Insured under one or more policy(ies)
without any option for selection. Reduction in premium rates for such
deletion(s) may be allowed as shown under the relevant sections of the
Tariff. When these perils are deleted from the scope of the policy, the
general exclusions shall include these perils.
f) 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 per mille shall be
charged in such cases for covering the risks under Standard Fire and
Special Perils Policy. No discounts and/or agency commission shall be
allowed on this rate.For add-on covers, additional rates provided in
section VIII shall be charged
g) Rates shown under this tariff are minimum rates. Insurers may charge
rates higher than those given under the tariff.
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SECTION - 1
2. VALUED POLICY(IES)
Valued Policy(ies) can be issued only for properties whose Market Value
cannot be ascertained e.g Curios, Works of Art, Manuscripts, Obsolete
machinery and the like subject to the valuation certificate being submitted
and found acceptable by the insurers.
3. LONG TERM POLICIES
Policies for a period exceeding 12 months shall not be issued except for
“Dwellings”.
Clarification :
TAC Letter Fire/19/(3)/207 dt. 06.03.2003
Re : Reduction of Sum Insured under Long Term Policy
The Fire committee has decided not to allow any refund of

premium for long term policies for dwellings in case of mid term
reduction of sum insured considering the concessions allowed
on the premium for the same
4. MID-TERM COVER
Generally, it is not permissible to grant mid-term cover for STFI and/or

RSMD perils. The following provisions shall apply, where such covers are
granted mid-term:
a) Insurers must receive specific advice from the insured accompanied by

payment of the required additional premium in cash or by draft. This
additional premium shall not be adjusted against existing Cash
deposits or debited to Bank guarantee.
b) Mid-term cover shall be granted for the entire property at one complex
/compound/location covering the entire interest of the Insured under
one or more policy(ies). Insured shall not have any option for selection.
c) Cover shall commence 15 days after the receipt of the premium.
d) The premium rates as under shall be charged on short period scale

(as per Rule 8) on full sum insured at one complex/compound/location
covering the entire interest of the insured for the balance period i.e.
upto the expiry of the policy.
4
SECTION - 1
Mid-term Section iii Section vi Section

inclusion Materials Materials iv, v and
of in godown in open vii
STFI 0.2% 0.35% 2.00% 0.35%

RSMD 0.15% 0.15% 0.15% 0.15%
5. PAYMENT OF PREMIUM
Premium shall be paid in full and shall not be accepted in instalments or

by deferred payments in any form.
N.B:- It is not permissible to split sum insured of the same property under
various policies for different periods of insurance to derive advantage of
deferred instalments for payment of premium. Notwithstanding the above,
different policies may be issued for stocks where circumstances
necessitate issuance of such policies.
6. MINIMUM PREMIUM
Minimum premium shall be Rs.100/- per policy except for risks ratable
under Section III and ‘Tiny Sector Industries’ under Section IV where the
minimum premium shall be Rs. 50/ per policy.
7. PARTIAL INSURANCE
It is not permissible
a) to issue a policy covering only certain portions of a building. Not with
standing this, the plinth and foundations or only the foundation of a
building may be excluded.
b) To issue a policy covering only specified machinery (except Boilers),

parts of machine or accessories thereof housed in the same block/
building.
N.B. Where portions of a building and/or machinery therein are under

different ownership, it is permissible for each owner to insure separately
but to the full extent of his interest on the building and/or machinery
therein. In such cases, the Insured’s interest shall be clearly defined in
the policy.
5
SECTION - 1
8. RATES FOR SHORT PERIOD INSURANCE
Policies for a period of less than 12 months shall be issued at the rates set
out hereunder:
For a period not exceeding 15 days 10% of the Annual rate

-do- 1 month 15% of the Annual rate
-do- 2 months 30% of the Annual rate
For a period exceeding 9 months The full Annual rate
N.B.: Extension of short period policy(ies) shall not be permitted..
9. LOADING FOR “KUTCHA” CONSTRUCTION
Building(s) having walls and/or roofs of wooden planks/thatched leaves

and/or grass/hay of any kind/bamboo/plastic cloth/asphalt cloth/canvas/
tarpaulin and the like shall be treated as ‘Kutcha’ construction for rating.
An additional rate of Rs.4.00%o shall be charged for such building(s) and

/ or contents thereof.
Note:-Temporary sheds (attached to buildings) erected during the

monsoon solely for the purpose of monsoon protection are permitted with
out loading provided such sheds are not used for storage purpose.
10.RULES FOR CANCELLATIONS
For Cancellation of insurance policy.
10.1 At the option of the insured:-
a) Retention of premium shall be at Short Period Scale for the period the
Policy has been in force, subject to the retention of minimum premium
by the Insurer.
b) During the currency, if a policy is replaced with the same insurer by a

new annual one covering the identical property, refund of premium may
be allowed on pro-rata basis at the original rates for the sum insured
replaced.
6
SECTION - 1
c) For the sum insured not replaced, refund must be calculated after
charging premium at short period scale on such sum for the time the
insurance has been in force subject to retention of the minimum premium
by the insurer.
d) In case of short period policies, premium shall be retained at the

applicable short period scale.
N.B.:- In case a policy is cancelled on account of a Government Order or

on completion of a “Building in course of construction” or where
Buildings are demolished, pro-rata refund of premium may be allowed.
e) At the option of the insurer:-
Refund of premium shall be on pro-rata basis for the unexpired term.
11. MID-TERM REVISION IN SUM INSURED :
Mid-term revision in sum insured shall be allowed as follows:
Increase in sum insured : On pro-rata basis

Decrease in sum insured : On short-period scale
12. ESCALATION CLAUSE :
It will be in order for Insurers to allow automatic regular increase in the Sum
Insured throughout the period of the policy in return for an additional
premium to be paid in advance. The terms and conditions for this extension
shall be as follows
a) The selected percentage increase shall not exceed 25% of the Sum
Insured.
b) The additional premium, payable in advance, will be at 50% of the full

rate, to be charged on the selected percentage increase.
c) The Sum Insured at any point of time would be assessed after

application of the Escalation Clause.
d) Escalation Clause will apply to policies covering Building, Machinery

and Accessories only and will not apply to policies covering stock.
e) Escalation Clause will apply to all policies and is not restricted to policies
issued on reinstatement value basis.
f) Pro-rata condition of Average will continue to apply as usual.
7
SECTION - 1
g) The automatic increase operates from the date of inception upto the date
of operation of any of the Insured Perils.
Note:- For endorsement wording , see, Clause F, Annexure A.
13.FLOATER POLICY
Floater Policy (ies) can be issued for stocks at various locations under one
Sum Insured (The Standard Floater Clause I, Annexure A shall be attached
to such policies).
Note: Unspecified locations shall not be allowed.
Rating: The rate shall be the highest rate applicable to insured’s stocks at
any location with a loading of 10 %.
N.B.1: In case Stocks in a process block are covered under the Floater Policy
and the rate for the process block is higher than the storage rate, the
process rate plus 10% loading shall apply.
N.B.2: Presence of “ Kutcha” construction may be ignored.
N.B.3: If stocks situated within godowns/process blocks in the same

compound are covered under floater policy, no floater extra is
chargeable.
Clarification :
Letter No. Fire 14 [1004] Date : 30/07/01
Re : Earthquake rating under Floater policy
To compute the base rate by adding the rate for highest Earthquake zone
involved to the highest rate otherwise applicable as per tariff provision
before applying 10% loading to the same to arrive at premium rate
application for floater policies covering Earthquake Peril.
14. DECLARATION POLICIES
To take care of frequent fluctuations in stocks/stock values,

Declaration Policy(ies) can be granted subject to the following
conditions (Standard Declaration Clause J, Annexure A shall be
attached to such policies):
a) The minimum sum insured shall be Rs 1 crore in one or more locations

and the sum insured shall not be less than Rs. 25 lakhs in atleast one of
these locations.It is necessary that the declared values should
8
SECTION - 1
approximate to this figure at sometime during the policy year.
b) Monthly declarations based on a) the average of the values at risk on

each day of the month or b) the highest value at risk during the month
shall be submitted by the Insured latest by the last day of the succeeding
month. If declarations are not received within the specified period, the full
sum insured under the policy shall be deemed to have been declared.
c) Reduction in sum insured shall not be allowed under any circumstances.
d) Refund of premium on adjustment based on the declarations/

cancellations shall not exceed 50% of the total premium.
e) The basis of value for declaration shall be the Market Value anterior to
the loss.
f) It is not permissible to issue declaration policy in respect of

i. Insurance required for a short period.
ii. Stocks undergoing process.
iii. Stocks at Railway sidings
g) If after occurrence of any loss it is found that the amount of last

declaration previous to the loss is less than the amount that ought to
have been declared, then the amount which would have been
recoverable by the insured shall be reduced in such proportion as the
amount of said last declaration bears to the amount that ought to have
been declared.
15. FLOATER DECLARATION POLICIES
Floater Declaration policy(ies) can be issued subject to a minimum sum

insured of Rs 2 crores and compliance with the Rules for Floater and
Declaration Policies respectively except that the minimum retention shall be
80% of the annual premium. (Standard Floater Clause I and Declaration
Clause J , Annexure A shall be attached to such policies):
16. CLAIMS EXPERIENCE DISCOUNT / LOADING
Risks having sum insured (on buildings and contents of all blocks in one
compound of one complex in one location ) above Rs.50 Crores rateable
under Sections IV, V, VI & VII of this tariff shall attract claims experience
discounts/loadings based on the incurred claims experience of all the
policies covering the Insured’s interest for the preceding 36 months
excluding the expiring policy period. (If there is any break in insurance,
available 36 months experience shall be taken into account) as per the table
given below.
9
SECTION - 1
Incurred claim ratio for the preceding 36 Discount Loading

months excluding the expiring policy period (%) (%)*
Upto 5 % 15 —
Above 5% & upto 10% 10 —
Above 10% & upto 15% 5 —
Above 15% & upto 30% — —
Above 30% & upto 40% — 2.5
Above 40% & upto 55% — 5
Above 55% & up to 75% — 10
Above 75% & up to 100% — 15
Above 100% — To be
referred to
TAC
* On renewal of business either by an existing insurer or by a new insurer,

a provisional loading of 15% must be charged in all cases where certified
details of claims experience by respective insurers are not available. This
loading shall be adjusted subsequently on receipt of the exact
claims experience.
FT/ 2 /2004 Date : 25th March, 2004

CIRCULAR
Ref : GR No.16 - ‘claims experience discount / loading’ under AIFT
General Rules and Regulations - No.16 - “Claims Experience

Discount/Loading” of Section I of the AIFT have been revised to
read as under :
16 : claims experience discount/loading
Risks having sum insured (on buildings and contents of all blocks
in one compound of one complex in one location) above Rs. 50
Crores rateable under Sections IV,V, VI & VII of this tariff shall attract
claims experience discounts/loadings based on the incurred claims
experience of all the policies covering the Insured’s interest for
the preceding 36 months excluding the expiring policy period which
shall not be less than 9 months (If there is any break in insurance,
available 36 months experience shall be taken into account) as per
the table given below :
10
SECTION - 1
Incurred claim ratio for the preceding 36 Discount Loading

months excluding the expiring policy (%) (%)*
period
Upto 5 % 15 —
Above 5% & upto 10% 10 —
Above 10% & upto 15% 5 —
Above 15% & upto 30% — —
Above 30% & upto 40% — 2.5
Above 40% & upto 55% — 5
Above 55% & up to 75% — 10
Above 75% & up to 100% — 15
Above 100% & up to 150% — 17.5
Above 150% & up to 200% — 20
Above 200% & up to 300% — 25
Above 300% & up to 500% — 50
Above 500% — 100
Note 1: In case the claim experience exceeds 200% additional

excess of 2.5% of the claim amount of each and every claim subject
to minimum of Rs.10,000/- shall apply
(i.e minimum total excess of Rs.20,000/-).
Note 2: The above loading will not be applicable for Dwellings.
In the event of the insured transferring his insurance on renewal

from one insurer to another insurer, the transferee insurer may
allow claims experience discount/loading on the basis of the claims
experience details from the previous insurer(s). Evidence of the
insured’s entitlement for claims experience discount/loading in the
form of a letter confirming the claims experience details from the
previous insurer(s) will be required for this purpose.
11
SECTION - 1
Where the insured is unable to produce such evidence of claims

experience details from the previous insurer(s), the present insurer
may allow claims experience discount/loading as applicable after
obtaining written declaration from the insured as below:
“ I/We declare that the claims experience details for previous 36

months period excluding the expiring policy period and discount/
loading (strike out whichever is not applicable) claimed by me/us
are correct (copies of the previous policies enclosed). I/We further
undertake that if this declaration is found to be incorrect, all benefits
under the policy will stand forfeited. “
Notwithstanding the above declaration, the insurer allowing the

claims experience discount/loading will be obliged to write to the
policy issuing office of the previous insurer by recorded delivery
calling for confirmation of the claims experience details and the
previous insurer shall be obliged to provide the information sought
within 30 days of the receipt of the letter of inquiry failing which
the matter will be treated as a breach of tariff on the part of the
previous insurer. Failure of the insurer granting the claims
experience discount to write to the previous insurer within 21 days
after granting the cover will also constitute a breach of the tariff.
The aggrieved insurer is required to report the breach to TAC
immediately.
The above revisions will be effective for all new business/renewals

falling due on or after 16th April, 2004.
Insurers are requested to advise their operating offices suitably in

this regard.
Secretary
Clarification :
TAC Letter No. Fire 453[591] Date : 23/05/01
In case the total sum insured at the risk including 50% of the declared
sum insured for declaration policy exceeds Rs. 50crs, the risk will qualify
for claim experience discount / loading.
12
SECTION - 1
17. FIRE EXTINGUISHING APPLIANCES DISCOUNT
The discounts as per the scale given below may be granted by the
Insurers to detached or segregated (as per the Committees Building
Regulations) blocks of the risks protected by Fire Extinguishing
Appliances ratable under Sections III, IV, V, VI and VII of the Tariff [ex
cept for Floater and/or Floater Declaration Policy(ies)] subject to the
following:
a) System is erected and tested as per the relevant Regulations of

the TAC and a certificate from LPA or TAC accredited
Professional(s) / Professional agency(ies) confirming the efficacy
of the system and its full compliance with the Committee’s rules is
submitted by the Insured.
Note: Professional(s) / Professional Agency (ies) designing and/

or installing the system themselves shall get the system certified
by third parties.
b) The installation is maintained in an efficient working order at all

times and an Annual Maintenance Contract (AMC) with an
external agency is in force.
Note:- Any agency other than the one involved in the installation
of the system or a third party having uptodate knowledge of main
tenance of fire fighting equipment can be approached for AMC.
Type of installation Discount (%)

a) Hand Appliances & Trailer Pumps/ Fire Engines 2.5
b) Hand Appliances & Hydrant System 5
c) Hand Appliances & independent Sprinkler / Fixed
Water Spray System 7.5
d) Hand Appliances + Hydrant System & independent
Sprinkler/ Fixed Water Spray System 10
N.B.:1 Absence of Hand Appliances for Storage risks will not prejudice
the applicable discounts
N.B.:2 The discounts are not cumulative
18 RATING OF RISKS IN MULTIPLE OCCUPANCY INDUSTRIAL

ESTATE
Risks in Multiple Occupancy Industrial Estate shall be rated ‘Per se’.

If the entire building of the Industrial Estate is insured under one sum
insured, a rate of Rs. 1.80%o shall be chargeable to ‘building’.
13
SECTION - 1
19 SILENT RISK
Risks rateable under Sections IV and V are allowed silent rates as per
the following table.
Factories where no manufactur- Retention of the premium shall

ing / storage activities are carried be based on the appropriate
out continuously for 30 days or storage rate or silent risk rate of
more. Re.1.00%o whichever is higher.
The silent rates are not applicable if a risk goes silent following a
loss under the policy.
Note:- Risks becoming silent shall not be entitled to any discounts.
FT/22/2001 CIRCULAR Date : 12-11-2001
Sub : Deletion facility in respect of STFI/RSMTD perils
Arising out of a query on deletion facility for STFI/RSMTD perils

in respect of “Silent Risks”, Tariff Advisory Committee has
decided to clarify that it is permissible to exclude the above perils
at the inception of the policy only in case of risks rateable under
Section IV and V of the All India Fire Tariff. Reduction in premium
rate for such deletion may be allowed as shown under the
concerned sections.
You are requested to advice your operating offices suitably in

this regard.
Secretary
20. VOLUNTARY DEDUCTIBLES
On receipt of application from the insured, Insurer may consider

suitable discounts for voluntary deductibles as per the scale shown in
the table below. The discounts are applicable under the Standard Fire
and Special Perils Policy as well as for the add-on covers.
Note: The Insurer shall attach to the policy(ies) a suitable clause in

case the insured opts for the deductible and discount in the premium
as shown in the table.
14
SECTION - 1
For endorsement wording see Clause K, Annexure A.
Note: The Insurer shall attach to the policy(ies) a suitable clause in

case the insured opts for the deductible and discount in the premium
as shown in the table.
For endorsement wording see Clause K, Annexure A.
Table of discounts for Voluntary Deductible
Deductible Amount
AOG Perils Other perils Discount (%)
5% of Claim amount In Rs. lakhs
subject to minimum of Rs.
10 lakhs 5 2
20 lakhs 10 4
30 lakhs 15 6
60 lakhs 30 8
100 lakhs 50 10
> 100 lakhs > 50 To be

referred to
TAC
FT/ 3 /2004 CIRCULARDate : 25th March, 2004
Re: Voluntary Deductibles under AIFT
Tariff Advisory Committee has decided to revise the following

provisions in respect of ‘Voluntary Deductibles’ under AIFT :
(a) the ‘Table of discounts for Voluntary Deductibles’ appearing

under Rule No.20 - Voluntary Deductibles, Section I, General
Rules and Regulation of AIFT
(b) sl. No. ‘K’-’Voluntary Deductible Clause’ appearing in

‘Annexure A’ of AIFT (page 110)
The revised provisions are as under :
15
SECTION - 1
(a) Table of discounts for Voluntary Deductibles

Deductible Amount
AOG Perils (5* % of claim amount Other perils
Discount %
subject to minimum of Rs. in lakhs ) (of Rs. in lakhs)
10 5 2
20 10 4
30 15 6
60 30 8
100 50 10
500 100 12.5
1,000 500 15
2,000 1,000 20
> 2,000 > 1,000 25
Note :1) Voluntary Deductible once opted shall apply to the entire
property insured and no selection shall be allowed.
*2) Wherever additional excess of 2.5% is applicable the 5% indi-
cated above shall read as 7.5%
(b) Voluntary Deductible Clause :
‘It is hereby declared and agreed that the insured having opted a
voluntary deductible of ...... out of net amount of each and every
admissible claim underthe fire policy(ies) covering the said
premises, the company has allowed a discount of ..........% on the
final premium payable for the policies and Add-on Covers. It is
further agreed that the above voluntary deductible opted shall
replace the compulsory excess stipulated under “General
Exclusions” attached to the policy(ies) and/or for add-on covers.’
The change will be effective for all new business/renewals falling

due on or after 16th April, 2004.

this regard.
16
SECTION - 1
21. COMPUTATION OF FINAL RATE

The following sequence shall be adopted for computation of the rate :-
1) Basic Rate
2) 5% Reduction for Sprinklered blocks if applicable (for risks rateable
under Sections III ,IV, V and VI).
3) Reduction in rates for deletion of STFI and/or RSMTD perils, if opted
out.
4) Tariff extra for ‘Kutcha’ Construction, if applicable (to be applied on
1- 2-3)
5) Discount/loading for claims experience (to be applied on 1-2-3-/+4)
6) Discount for FEA on protected blocks (to be applied on 1-2-3-/+4 )
7) Discount for voluntary deductible shall be applicable on the total
premium calculated on the basis of final rate worked out as above
FT/15/2001 CIRCULAR Date : 30-7-2001
Re: Extension of the Standard Fire & Special Perils Policy to cover
damage due to Molten Material Spillage
The Tariff Advisory Committee has decided the following rates, terms
and conditions for the above cover as an extension of the fire cover
on “First Loss” basis.
Rates and Terms
Premium Rate
MD Re. 0.65%o
LOP Re. 0.65%o
Deductible
MD Nil
LOP 7 days
Conditions:
a. There shall be no claim due to molten material spillage
during the 2 years period prior to the policy period at
inception.
b. LOP cover to be limited to 50% of respective loss limit opted
for material damage
c. loss or damage to the spilled material to be excluded
The above decision will be effective for all fresh business and
renewals falling on or after the date hereof.
Insurers are requested to inform their operating offices suitably
in this regard.
Secretary
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SECTION - 1
FT/ 9 /2001 CIRCULAR March 27, 2001
Re : Tailor-made Policy for Stocks in General Warehouses/Container

Freight Stations/ Bonded warehouses belonging to M/s. Central
Warehouses Corporation.
The Tariff Advisory Committee has decided as below in respect of

cover under single policy for stocks belonging to the above Insured
lying in General Warehouses, Container Freight Stations and Bonded
Warehouses :
a) A Floater Declaration Policy can be given for the goods lying at

various locations including Container Freight Stations, Bonded
Warehouses and General Warehouses.
b) The sum insured should be the Maximum value of Goods held in

the previous year. Any increase in Sum Insured noticed during
the currency of the Policy should be advised to the Insurers and
corresponding additional premium should be paid as per Tariff
provisions.
c) Under-insurance upto 15% should be ignored. However, if the

same exceeds 15% at any time the actual under-insurance should
be taken into account for arriving at the loss.
d) The special rates granted by the Committee (ranging from

Rs. 1.25%o to Rs. 2.25%o as per the circular no. FT/4/2000 dated
09-02-2001) in respect of godowns/warehouses for Central/State
Warehousing Corporations should apply in this case.
e) The insured can declare the values quarterly or half yearly or

yearly basis within 90 days of the expiry of such periods subject
to the consent of the Insurer.
Insurers are requested to advise their operating offices suitably

in this regard.
Secretary
18
SECTION - 1
CIRCULAR
FT/1/2002 Date : 13-3-2002
Sub: Riot, Strike, Malicious and Terrorism Damage (RSMTD) Cover

under All India Fire Tariff.
Effective from 1-4-2002 the following revised provisions will be

applicable:
1) Terrorism cover will be a separate cover which can be granted

only in conjunction with Riot, Strike and Malicious Damage
cover (RSMD). Terrorism cover will not be given in isolation
without RSMD cover.
2) The Riot, Strike, Malicious and Terrorism Damage cover under

the Standard Fire and Special Perils Policy (Material Damage),
Section II of the All India Fire Tariff will be renamed as Riot,
Strike, Malicious Damage cover and will exclude terrorism
damage and the relevant provision will stand amended to read
as under:
Riot, Strike and Malicious Damage
Loss of or visible physical damage or destruction by external violent

means directly caused to the property insured but excluding those
caused by
a. Total or partial cessation of work or the retardation or

interruption or cessation of any process or operations or
omissions of any kind.
b. Permanent or temporary dispossession resulting from

confiscation, commandeering, requisition or destruction by
order of the Government or any lawfully constituted Authority.
c. Permanent or temporary dispossession of any building or

plant or unit of machinery resulting from the unlawful
occupation by any person of such building or plant or unit or
machinery or prevention of access to the same.
d. Burglary, housebreaking, theft, larceny or any such attempt

or any omission of any kind of any person (whether or not
such act is committed in the course of a disturbance of public
peace) in any malicious act.
19
SECTION - 1
If the Company alleges that the loss/damage is not caused

by any malicious act, the burden of proving the contrary shall
be upon the insured.
Terrorism Damage Exclusion Warranty :
Notwithstanding any provision to the contrary within this insurance

it is agreed that this insurance excludes loss, damage cost or
expense of whatsoever nature directly or indirectly caused by,
resulting from or in connection with any act of terrorism regardless
of any other cause or event contributing concurrently or in any other
sequence to the loss.
For the purpose of this endorsement an act of terrorism means an

act, including but not limited to the use of force or violence and / or
the threat thereof, of any person or group(s) of persons whether
acting alone or on behalf of or in connection with any organisation(s)
or government(s), committed for political, religious, ideological or
similar purpose including the intention to influence any government
and/or to put the public, or any section of the public in fear.
The warranty also excludes loss, damage, cost or expenses of

whatsoever nature directly or indirectly caused by, resulting from
or in connection with any action taken in controlling, preventing,
suppressing or in any way relating to action taken in respect of any
act of terrorism.
If the Company alleges that by reason of this exclusion, any loss,

damage, cost or expenses is not covered by this insurance the
burden of proving the contrary shall be upon the insured.
In the event any portion of this endorsement is found to be invalid

or unenforceable, the remainder shall remain in full force and effect.
3) Mid-term Cover : No mid-term cover shall be granted for RSMD

and Terrorism. The present provision for mid term cover as
provided under Rule 4, of General Rules and Regulations -
SectionI of the All India Fire Tariff in so far as it relates to
RSMTD perils shall stand deleted.
4) Rule 1(e) of the General Rules and Regulations of the All India
Fire Tariff will stand amended to read as under:
20
19
SECTION - 1
“ It is permissible to exclude Storm, Tempest, Flood and

Inundation group of perils (hereinafter referred to STFI) and/
or Riot, Strike and Malicious Damage perils (hereinafter
referred to as RSMD) at inception of the Policy by deleting
the relevant perils from the policy.
The deletion shall apply for the entire property in one complex
/compound/location covering the entire interest of the insured
under one or more policy(ies) without any option for selection.
Reduction in premium rates for such deletion(s) may be
allowed as shown under the relevant sections of the tariff.
When these perils are deleted from the scope of the policy,
the general exclusions shall include these perils.”
5) Reduction in premium rates for exercising the option to delete

STFI/RSMTD perils at the inception of the policies provided
for under various sections of the tariff in so far as they relate
to RSMTD perils, will be applicable only in respect of RSMD
perils. There will be no reduction of premium for exclusion of
Terrorism risk.
6) Rates for Terrorism Cover :

Premium will be charged separately for covering terrorism
risk at the following rates.
Industrial Risks (i.e. Risks rateable under Section Re.0.50 per

IV,V,VI and VII of All India Fire Tariff and under mille
Petrochemical Tariff)
Non-industrial Risks (Risks rateable under Sec- Re.0.30 per

tion III of All India Fire Tariff) mille
The above rates will be charged separately on the total sum

insured for Material Damage and Loss of Profit.
7) Limit of Insurance for terrorism :
The maximum loss limit under Terrorism cover shall be Rs.200

crores for any one risk (MD+LOP). For this purpose one risk shall
be defined as one compound or one location. In respect of several
insurances within the same compound / location with all Indian
insurers, the maximum aggregate loss (MD+LOP) payable per
compound/location shall be Rs.200 crores. If the actual aggregate
loss suffered at one compound / location is more than Rs.200
21
SECTION - 1
crores, the amounts payable under individual policies shall be

reduced on pro rata basis.
Premium rates shall apply on Total Sum Insured as detailed under:
Total Sum Insured Premium on TSI Overall Liability

(MD+LOP) (Rs) (MD+LOP) Cap
Upto 200 crores Full rate 200 crores
Over 200 crs to 250 crs 97.5 % of full rate 200 crores
Over 250 crs to 500 crs 95 % of full rate 200 crores
Over 2000 crs 75 % of full rate 200 crores
For loss liability limits in excess of Rs. 200 crores, insurers can
obtain rates from reinsurers and handle its reinsurance, subject to
their charging premium as per item 6 for the coverage up to Rs.200
crores.
8) Deductibles : Every claim under terrorism cover will be subject

to a deductible as under:
Industrial Risks - 0.5 % of TSI subject to a minimum of Rs. 1 lakh

(i.e. Risks rateable under Section IV,V,VI and VII of All India Fire
Tariff and under Petrochemical Tariff)
Non-industrial Risks - 0.5 % of TSI subject to a minimum of

Rs. 25,000/-
(Risks rateable under Section III of All India Fire Tariff))
9) Terrorism Damage Cover Endorsement : When the insured opts

for Terrorism Damage cover by paying additional premium as
provided under item no (6) above, cover will be granted by
attaching the following endorsement:
“It is hereby declared and agreed that in consideration of payment

of additional premium of Rs._______, the Terrorism Damage
Exclusion Warranty of the Riot, Strike, Malicious Damage
provision forming part of the within mentioned policy stands
deleted. The expression/s “terrorism and/or act of terrorism” shall
22
SECTION - 1
have the same meaning/s as contained in Terrorism Damage

Exclusion Warranty.
This endorsement does not cover loss of or damage caused by
A)
I. Total or partial cessation of work or the retardation or
II. Permanent or temporary dispossession resulting from

confiscation, commandeering, requisition or destruction
by order of the Government or any lawfully constituted
Authority.
III. Permanent or temporary dispossession of any building

or plant or unit of machinery resulting from the unlawful
occupation by any person of such building or plant or unit
or machinery or prevention of access to the same.
IV. Burglary, housebreaking, theft, larceny or any such

attempt or any omission of any kind of any person
(whether or not such act is committed in the course of a
disturbance of public peace) in any action taken in respect
of an act of terrorism.
B) loss or damage, cost or expenses of whatsoever nature

directly or indirectly caused by, resulting from or in
connection with any action taken in controlling , preventing ,
suppressing or in any way relating to action taken in respect
of any act of terrorism.
If the Company alleges that by reason of this exclusion, any

loss, damage, cost or expenses is not covered by this
insurance the burden of proving the contrary shall be upon
the insured.
The limit of coverage under this endorsement shall not exceed

Rs. _______ (insert here the overall liability limit for Material
Damage + Loss of Profit). In respect of several insurances
within the same compound / location with all the Indian
insurers, the maximum aggregate loss (MD+LOP) payable per
compound /location shall be Rs.200 crores. If the actual
aggregate loss suffered at one compound / location is more
23
SECTION - 1
than Rs.200 crores, the amounts payable under individual

policies shall be reduced on pro rata basis.
The coverage under this endorsement is subject to an excess

of Re. 0.5% of the total sum insured subject to a minimum of
Rs. ______ (insert Rs. 25000 or Rs. 1 lakh as applicable) for
each and every claim in respect of both material damage and
loss of profits combined.”
10) Treatment of surcharge applied from 1-10-2001 :

10% surcharge on account of terrorism was applicable w.e.f
1-10-2001. All such insurance will be cancelled on pro rata basis as
on 31-3-2002 and fresh insurance will be effected w.e.f 1-4-2002 for
the unexpired period with the revised rates for terrorism risks on
pro-rata basis.
In the case of insurance of risks where the insurers may have already
concluded reinsurance arrangements and such cancellation is not
required by reinsurance arrangements, insurers will have the option
to continue the present insurance (where 10% surcharge has been
collected ) till expiry.
Insurers are advised to inform their operating offices suitably.
Secretary
24
SECTION - 1
CIRCULAR
FT/ 2 /2002 Date : 13-3-2002
Sub : Coverage for Terrorism Loss/Damageunder Industrial All Risks

Insurance Tariff
1. Effective from 1st April, 2002 the following Terrorism Damage

Exclusion Warranty shall be incorporated as item 6 under
Excluded Causes of section I (Material Damage) in all IAR
policies:
Terrorism Damage Exclusion Warranty
Notwithstanding any provision to the contrary within this insurance,

it is agreed that this insurance excludes loss, damage cost or
expense of whatsoever nature directly or indirectly caused by,
resulting from or in connection with any act of terrorism regardless
of any other cause or event contributing concurrently or in any other
sequence to the loss.
For the purpose of this endorsement an act of terrorism means an

act, including but not limited to the use of force or violence and or
the threat thereof, of any person or group(s) of persons whether
acting alone or on behalf of or in connection with any organisation(s)
or government(s) committed for political, religious, ideological or
similar purpose including the intention to influence any government
and/or to put the public, or any section of the public in fear.
The warranty also excludes loss, damage, cost or expenses of what-

soever nature directly or indirectly caused by, resulting from or in
connection with any action taken in controlling, preventing, sup-
pressing or in any way relating to action taken in respect of any act
of terrorism.

In the event any portion of this endorsement is found to be invalid

or unenforceable, the remainder shall remain in full force and
effect.
25
SECTION - 1
2. Deletion of Terrorism Damage Exclusion Warranty. Terrorism

Damage Exclusion Warranty can be deleted by charging extra
premium @ Re. 0.50%o on the Total Sum Insured of Section I
and Section II of the Industrial All Risks Insurance Policy. How
ever the coverage shall be subject to maximum limits as pro
vided in item 4 below and also other terms/conditions mentioned
elsewhere in this Circular.
3. Mid-term Cover : No mid-term cover shall be granted for

terrorism risk.
4. Limit of Insurance for Terrorism Cover :
The maximum loss limit under Terrorism cover shall be Rs. 200
crores for any one risk (MD+LOP). For this purpose, one risk
shall be defined as one compound or one location. In respect of
several insurances within the same compound / location with all
Indian insurers, the maximum aggregate loss payable per
compound /location shall be Rs. 200 crores. If the actual
aggregate loss suffered at one compound / location by all Indian
insurers is more than Rs. 200 crores, the amounts payable
under individual policies shall be reduced in the same propor
tion as Rs. 200 crores to the aggregate of all losses at that com
pound / location.
Total Sum Insured Premium on TSI Overall Liabil-

(MD+LOP) (Rs) (TSI) ity (MD+LOP)
Cap
Upto 200 crores Full rate 200 crores

Over 200 crs to 250 crs 97.5 % of full rate 200 crores
Over 2000 crs 75 % of full rate 200 crores
For loss liability limits in excess of Rs. 200 crores, insurers can
obtain rates from reinsurers and handle its reinsurance, subject to
their charging premium as per item 2 for the coverage up to Rs.200
crores .
26
SECTION - 1
5. Deductible for Terrorism Damage Claims: Every claim under

terrorism cover will be subject to deductible as under :
0.5% of TSI subject to a minimum of Rs. One lakh.
6. Documentation.
Where Terrorism Damage Exclusion warranty is deleted by

charging additional premium as in item 2 above, the following
endorsement shall be attached to the policy :
"It is hereby declared and agreed that in consideration of

payment of additional premium of Rs._______, the Terrorism
Damage Exclusion Warranty of the within mentioned policy
stands deleted. The expression/s "terrorism and/or act of terror
ism" shall have the same meaning/s as contained in Terrorism
Damage Exclusion Warranty.
This endorsement does not cover loss of or damage caused by
A)
I. Total or partial cessation of work or the retardation or
II. Permanent or temporary dispossession resulting from

confiscation, commandeering, requisition or destruction by
order of the Government or any lawfully constituted
Authority.
III. Permanent or temporary dispossession of any building or

plant or unit of machinery resulting from the unlawful
occupation by any person of such building or plant or unit or
machinery or prevention of access to the same.
IV. Burglary, housebreaking, theft, larceny or any such attempt

or any omission of any kind of any person (whether or not
such act is committed in the course of a disturbance of
public peace) in any action taken in respect of an act of
terrorism.
27
SECTION - 1
B)
Loss or damage, cost or expenses of whatsoever nature directly or

indirectly caused by, resulting from or in connection with any
action taken in controlling, preventing , suppressing or in any way
relating to action taken in respect of any act of terrorism.

In respect of several insurances within the same compound /

location by all Indian insurers, the maximum aggregate loss
payable per compound / location shall be Rs. 200 crores. If the
actual aggregate loss suffered at one compound / location by all
Indian insurers is more than Rs. 200 crores, the amount payable
under individual policies shall be reduced in the proportion that Rs.
200 crores bears to the aggregate of all losses payable at that
compound / compound.
The limit of coverage under this endorsement shall not exceed

Rs. _______ (insert here the overall liability limit for Material
Damage + Loss of Profit). The coverage under this endorsement is
subject to an excess of 0.5% of the total sum insured subject to a
minimum of Rs. One lakh for each and every claim in respect of
both material damage and loss of profits combined."
7. Treatment of surcharge of 10% applicable from 1-10-2001 :
10% surcharge on account of terrorism was applicable w.e.f

1-10-2001. All such insurance will be cancelled on pro rata basis as
on 31-3-2002 and fresh insurance will be effected w.e.f 1-4-2002 for
the unexpired period with the revised rates for terrorism risk on
pro-rata basis.
In the case of insurance of risks where the insurers may have

already concluded reinsurance arrangements and such
cancellation is not required by reinsurance arrangements, insurers
will have the option to continue the present insurance (where 10%
surcharge has been collected ) till expiry.
Insurers are advised to inform their operating offices in this regard.
Secretary
28
SECTION - 1
FT/3/2002 CIRCULAR Date : 8-4-2002
Re: Insurance of Terrorism Risk under Fire and Engineering Insur-

ance policies w.e.f 1-4-2002
This refers to circular nos. D-3/IRDA/3/2002 dated March 22, 2002

and D-4/IRDA/3/2002 dated March 28, 2002 issued by the Insurance
Regulatory and Development Authority. Based on representations
from insurers and the General Insurance Corporation of India
(Manager for Terrorism Pool) the Authority has approved revision
in the rates for coverage of terrorism risks and the revised rates are
as under :
Total Sum Premium on Total Sum Insured (TSI) Overall
Insured (MD+LOP)
(MD+LOP). liability cap
per location/
compound
TSI upto Full rate of Re. 0.5%o (for industrial Rs. 200
Rs.200 risks) or Re.0.3%o (for non- crores
crores industrial risks)
TSI a) Full rate of Rs.0.5%o (for industrial Rs.200

exceeding risks) or Re.0.3%o (for non-industrial crores
Rs.200 risks) on the first Rs.200 crores and
crores but
not b) Re.0.375%o (for industrial risks) or
exceeding Rs.0.225%o (for non-industrial risks)
Rs.2000 on the balance TSI.
crores
TSI a) Full rate of Re.0.5%o (for industrial Rs.200

exceding risks) or Re.0.3%o (for non-industrial crores
Rs.2000 risks) on the first Rs.200 crores and b)
crores Re.0.375%o (for industrial risks) or
Re.0.225%o (for non-industrial risks) on
the next Rs.1800 crores and c) Re.0.3%o
(for industrial risks) or Re.0.18% o (for
non- industrial risks) on the balance TSI in
excess of Rs.2000 crores.
Insurers may advise their operating offices suitably.
Secretary
29
SECTION - 1
FT/4 /2002 CIRCULAR Date :10-5-2002
Accreditation of Professionals/Professional agencies for certifying

FEA Installations
Insurer's attention is invited to the Item 17(b) of General Rules &

Regulations, Section 1 of All India Fire Tariff effective from
31-3-2001. The Item 17(b) is reproduced below :
"System is erected and tested as per the relevant Regulations of

the TAC and a certificate from LPA or TAC accredited Professional(s)/
Professional agency(ies), confirming the efficacy of the system and
its full compliance with the Committee's rules, is submitted by the
Insured.
Note : Professional(s)/Professional agency(ies) designing and/or

installing the system themeselves shall get the system certified by
third parties."
Pending accreditation of Professionals/Professional Agencies by

TAC, Chairman IRDA/TAC, has approved that insurance companies
can select Profesionals/Prefessional Agencies satisfying the
following norms, to certify FEA installation :
For Professionals :
a. Should be Graduate Engineer with 5 years experience in the Fire

Protection field or Diploma Engineer with 10 years related
experience. and
b. Should have handled atleast 3 projects for which proposals

submitted were approved and full discounts granted for the Fire
Protection systems by TAC or Insurance Companies.
Information in this connection should be provided to the

Insurance Company in the following format :
LIST OF PROJECTS HANDLED
Sr. Risk Type of Year of Quantum of discount Reference of

No Name Fire execution sanctioned by the letter(s)
Protection Competent Authority advising such
provided discount
30
SECTION - 1
Note : Relevant documents (work order/job order/completion

certificate) to be attached for verification by the insurance
company.
c. Expertise should be indicated in specific areas of Fire

Protection (Hydrant/Sprinkler/Water spray system etc.)
For Professional Agencies :
a. Should have one or more professionals with requirements of 3

a), b) and c) above.
b. The professional agency should be financially sound. Audited

financial statements to be submitted for verification by the
insurance company.
General : (Applicable to both Professionals/Professional

agencies)
1. Selection of professionals/professional agency to be done only

at the corporate office of the insurance company.
2. Professionals/Professional agencies will not certify any

installation in which they are involved as suppliers, erectors,
contractors or consultants.
Insurers may be guided by the above mentioned instructions.
Secretary
31
SECTION - 1
CIRCULAR
D-3/IRDA/3/2002 22nd March, 2002.
To all General Insurers
Sub : Insurance of terrorism risk in the Fire and Engineering

Departments
It has been reported to this office that insurers are planning to

cancel existing insurances of their clients just before 31 March 2002
and reissue policies for one year from that date in order to give to
their clients, the benefit of lower premium and full insurance . It has
also been reported that some insurers are planning to allow 5%
discount in lieu of agency commission in respect of premium for
terrorism risk.
As insurers are aware, the market took the welcome initiative of

working together to provide protection in respect of terrorism risk
after 1st April 2002 when the reinsurers were reported to be
withdrawing protection for terrorism risk from reinsurance
arrangements. It is most undesirable for insurers to take any action
which will be seen as subverting the market initiative. The insurers
had collectively decided that no agency commission will be
payable on premium for terrorism risk. It will therefore be improper
and in violation of tariff to allow any discount on premium for
terrorism risk. It will therefore be improper and in violation of tariff
to allow any discount on premium for terrorism risk. Insurers should
desist from such action.
The move to cancel and reissue policies for one full year referred to
above, may lead to serious problems with reinsurances because if
terrorism risk is excluded from treaties, it will also be excluded from
portfolio entry to the treaty for the year 2002-2003. The net account
excess of loss protections of insurers will also not cover the risk of
terrorism. Finally, GIC may exclude the risk of terrorism from
statutory cessions and will find it problematic to carrying the risk
for a full year through this method without having the ability to
protect the account.
A couple of insurers believe that their reinsurance arrangements

will continue to receive reinsurance on terrorism risk until 31 March
2003. Insurers are requested to exercise particular care even if this
32
SECTION - 1
be so, because the reinsurance arrangements will not cover excess

of loss protections for net account nor will they cover the surplus
after their surplus treaty is fully utilised.
In conclusion, we would like to see the market abiding by the mar-

ket decisions not only in letter but also in spirit. Any report of insur-
ers taking unfair advantage in competition through the above means
will be considered seriously by this office.
(N. Rangachary)
Chairman
CIRCULAR
Circular No. D-4/IRDA/3/2002 28th March, 2002
TO ALL GENERAL INSURERS
Re : Insurance of Terrorism Risk in the Fire and Engineering Deptts.
In continuation of our Circular No. D-3/IRDA/3/2002 dated 22nd

March, 2002 we would like to clarify as under :
Circular No. Date

FT/1/2002 13-03-2002
FT/2/2002 13-03-2002
Engg/Gen-4/24/16/17/2002-14 11-03-2002
Engg/Gen-4/24/16/17/2002-15 11-03-2002
1. Tariff Advisory Committee has issued the following detailed

circulars in respect of Terrorism cover effective from 01-04-2002:
2. An Insurer can cancel the current policy in its entirety on or

before March 31, 2002. However, whenever a fresh policy is
issued, effective from or after April 01, 2002, rates & terms
applicable for terrorism will be as per the revised rates effective
from April 01, 2002 communicated by the Tariff Advisory
Committee vide their circulars mentioned in 1 above. In no case
it is permissible to cancel and/or pre-pone an insurance to
enable any insured to get coverage for terrorism risk at rates &
terms different from what has been stipulated by the Tariff
Advisory Committee w.e.f. April 01, 2002.
33
SECTION - 1
3. In terms of Circular dated March 23, 2002 General Insurance

Corporation of India (as the Manager for Terrorism Pool) where
an insured wishes to continue cover for terrorism risk under an
existing policy beyond April 01, 2002, insurers may provide such
extension at pro-rata extra premium of the 10% surcharge up to
the expiry of the current policy. However, the extension for the
terrorism cover will be as per the revised wordings contained in
the circulars issued by the Tariff Advisory Committee as
mentioned in 1 above. Also renewal of the current policy will be
only at the revised rates applicable for terrorism risk effective
from April 01, 2002.
4. The circulars issued by TAC provide for deductible of 0.50% of

the total sum insured for each and every claim subject to a
minimum of Rs. 25,000/Rs. 1,00,000/ as applicable. The
deductible will be subject to a maximum of Rs. 10 crores for
each and every claim.
5. The rates prescribed by Tariff Advisory Committee w.e.f April

01, 2002 for terrorism risk are net rates and will not be subject to
any discount/commission.
(N. Rangachary)
Chairman
34
SECTION - 1
CIRCULAR
FT/1/2004 Date : 19/03/2004.
Re : Cover for Terrorism Risks under Fire & Engineering

Insurances
This refers to our earlier circular FT/03/2002 Dated 08/04/2002.
I Effective from 1-4-2004 premium / coverage structure for

terrorism risks will be subject to the following revisions :
Total Sum Premium on Total Sum Overall (MD +

Insured (TSI) Insured LOP) liability cap
[MD + LOP] per location /
compound
TSI upto Rs. 200 Full rate of Re.0.50%o (for In- TSI
crores dustrial risks) or Re. 0.30%o
(for non-industrial risks)
TSI exceeding a) Full rate of Re.0.50%o (for TSI

Rs.200 crores industrial risks) or Re.0.30%o
but not exceed- (for non-industrial risks) on the
ing Rs. 300 first Rs. 200 crores and
Crores b) Re.0.375 %o (for Industrial
risks) or Re. 0.225%o (for non-
industrial risks) on the balance
TSI
TSI exceeding a) Full rate of Re.0.50%o ( for RS.300 crores

Rs.300 crores Industrial risks) or Re.0.30 %o
but not exceed- (for non-industrial risks) on the
ing Rs.2000 first Rs. 200 Crores and
crores b) Re. 0.375%o (for Industrial
risks) or Re.0.225%o (for non-
industrial risks) on the balance
TSI
35
SECTION - 1
TSI exceeding a) Full rate of Re.0.50%o (for Rs.300 Crores

Rs. 2000 Industrial risks) or Re.0.30%o
Crores (for non-industrial risks) on the
first Rs.200 crores and
b) Re. 0.375%o (for Industrial
risks) or Re.0.225%o (for non-
industrial risks) on the next Rs.
1800 crores and
c) Re. 0.30%o (for industrial
risks) or Re.0.18%o (for non-in-
dustrial risks) on the balance
TSI in excess of Rs.2000 crores
II. For EAR/CAR insurances, discounts as under may be allowed

from the rates provided for in item no.3 of TAC’s circular No.
Engg/ Gen-4/24/16/17/2002 – 15 dated 11 th March, 2002.
Policy period
Discount
Initial Policy Period Extension

Period
Upto 1 year Nil Nil
Upto 2 years 1st year 20% Nil
2ndyear 20% Nil
Beyond 2 years 1st year 30% Nil
2nd year 30% Nil
3rd year &
Subsequent Year 30% Nil
III The rates prescribed above will continue to be net rates and
will not be subject to any discount/ Commission
IV Deductibles as communicated in IRDA circular No. D-4 /

IRDA/3/2002 dated 28-03-2002 shall continue to apply.
Insurers are requested to inform their operating offices suitably.
Secretary.
36
SECTION - 1
CIRCULAR
TAC/4/04 DATE : 16-12-2004
Re : Cover for Terrorism Risks Fire, Engineering & IAR tariffs
This refers to our earlier circular no.FT/01/2004 Dated 19-3-2004 and FT/
4/2004 dated 10-5-2004
Effective from 1-2-2005 the premium / coverage factor for terrorism Risks
shall stand revised as under:
Total Sum Premium on Total Sum R a t e Overall (MD +

Insured per Insured ( p e r LOP) liability cap
location [MD + Mille) per location /
LOP] compound
Rs. Crores
Full rate of
a) Industrial risks 0.30
Upto 500 b) Non- Industrial risks 0.20 TSI
c) Residential risks 0.10
Upto 500 and First 500, as per (1) above

Upto 2000 Plus on the balance sum
insured full rate of
Rs. 500Cr.
a. Industrial risks 0.25
b. Non-industrial risks 0.15
Over 2000 First 2000, as per (2) above

plus on the balnce sum
insured full rate of
Rs. 500 Cr.

a. Industrial risks 0.20
b. Non-Industrial risks 0.12
Secretary
37
SECTION - 11
SECTION II
STANDARD FIRE AND SPECIAL PERILS POLICY FORM
IN CONSIDERATION OF the Insured named in the Schedule hereto having paid

to the .............................. Insurance Company Limited (hereinafter called the
Company) the full premium mentioned in the said schedule, THE COMPANY
AGREES, (Subject to the Conditions and Exclusions contained herein or
endorsed or otherwise expressed hereon) that if after payment of the premium
the Property insured described in the said Schedule or any part of such Property
be destroyed or damaged by any of the perils specified hereunder during the
period of insurance named in the said schedule or of any subsequent period in
respect of which the Insured shall have paid and the Company shall have
accepted the premium required for the renewal of the policy, the Company shall
pay to the Insured the value of the Property at the time of the happening of its
destruction or the amount of such damage or at its option reinstate or replace
such property or any part thereof
I Fire
Excluding destruction or damage caused to the property insured by
a) i) its own fermentation ,natural heating or spontaneous
combustion.
ii) its undergoing any heating or drying process.
b) burning of property insured by order of any Public Authority.
II Lightning
III Explosion/Implosion
Excluding loss, destruction of or damage

a) To boilers (other than domestic boilers), economizers or other vessels,
machinery or apparatus( in which steam is generated) or their contents
resulting from their own explosion/implosion,
b) caused by centrifugal forces.
IV Aircraft Damage
Loss, Destruction or damage caused by Aircraft, other aerial or space

devices and articles dropped therefrom excluding those caused by
pressure waves.
V Riot, Strike and Malicious Damage

Loss of or visible physical damage or destruction by external violent means
directly caused to the property insured but excluding those caused by
a) total or partial cessation of work or the retardation or interruption
or cessation of any process or operations or omissions of any kind.
38
SECTION - 11
b) Permanent or temporary dispossession resulting from confiscation,

commandeering, requisition or destruction by order of the
Government or any lawfully constituted Authority.
c) Permanent or temporary dispossession of any building or plant or

unit or machinery resulting from the unlawful occupation by any
person of such building or plant or unit or machinery or prevention of
access to the same.
d) Burglary, housebreaking, theft, larceny or any such attempt or any

omission of any kind of any person (whether or not such act
iscommitted in the course of a disturbance of public peace) in any
malicious act.
VI Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and

Inundation
Loss, destruction or damage directly caused by Storm, Cyclone,
Typhoon, Tempest, Hurricane, Tornado, Flood or Inundation excluding those
resulting from earthquake, Volcanic eruption or other convulsions of nature.
( Wherever earthquake cover is given as an "add on cover" the words
"excluding those resulting from earthquake volcanic eruption or other
convulsions of nature" shall stand deleted.
VII Impact Damage

Loss of or visible physical damage or destruction caused to the property
insured due to impact by any Rail/ Road vehicle or animal by direct contact
not belonging to or owned by
a) the Insured or any occupier of the premises or
b) their employees while acting in the course of their employment.
VIIISubsidence and Landslide including Rock slide

Loss, destruction or damage directly caused by Subsidence of part of the
site on which the property stands or Land slide/Rock slide excluding:
a) the normal cracking, settlement or bedding down of new structures
b) the settlement or movement of made up ground
c) coastal or river erosion
d) defective design or workmanship or use of defective materials
e) demolition, construction, structural alterations or repair of any property

or groundworks or excavations.
39
SECTION - 11
IX Bursting and/or overflowing of Water Tanks, Apparatus and Pipes
X Missile Testign operations
XI Leakage from Automatic Sprinkler Installations

Excluding loss, destruction or damage caused by
a) Repairs or alterations to the buildings or premises
b) Repairs, Removal or Extension of the Sprinkler Installation
c) Defects in construction known to the Insured.
XII Bush Fire
Excluding loss, destruction or damage caused by Forest Fire.
PROVIDED that the liability of the Company shall in no case exceed in

respect of each item the sum expressed in the said Schedule to be insured
thereon or in the whole the total Sum Insured hereby or such other sum or
sums as may be substituted therefor by memorandum hereon or attached
hereto signed by or on behalf of the Company.
(A) GENERAL EXCLUSIONS
This Policy does not cover (not applicable to policies covering dwellings)
a) The first 5% of each and every claim subject to a minimum of Rs.10,000

in respect of each and every loss arising out of "Act of God perils" such as
Lightning,STFI, Subsidence,Landslide and Rock slide covered under
the policy
b) The first Rs.10,000 for each and every loss arising out of other perils in
respect of which the Insured is indemnified by this policyThe Excess
shall apply per event per insured.
2. Loss, destruction or damage caused by war, invasion, act of foreign enemy

hostilities or war like operations (whether war be declared or not), civil
war, mutiny, civil commotion assuming the proportions of or amounting to a
popular rising, military rising, rebellion, revolution, insurrection or military or
usurped power.
3. Loss, destruction or damage directly or indirectly caused to the property

insured by
a) ionising radiations or contamination by radioactivity from any nuclear
fuel or from any nuclear waste from the combustion of nuclear fuel
40
SECTION - 11
b) the radio active toxic, explosives or other hazardous properties of any

explosive nuclear assembly or nuclear component thereof
4. Loss, destruction or damage caused to the insured property by pollution or

contamination excluding
a) pollution or contamination which itself results from a peril hereby insured

against.
b) any peril hereby insured against which itself results from pollution or
contamination
5. Loss, destruction or damage to 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
orpaper money, cheques, books of accounts or other business books,
computer systems records, explosives unless otherwise expressly stated
in the policy.
FT/02/2003 CIRCULAR Date : 17.03.2003

Re : Coverage of goods held in trust or on comission - General
Exclusions No. 5 under Section II - (A) of AIFT
Tariff Advisory Committee has modified General Exclusion No.5, of

Standard Fire and Special Perils Policy under Section II of the AIFT.
The modified provision is as follows:
“Loss, destruction or damage to bullion or unset precious stones,

any curios or works of art for an amount exceeding Rs.10,000/-,
goods held in trust or on commission, manuscripts, plans,
drawings, securities, obligations or documents of any kind, stamps,
coins or paper money, cheques, books of accounts or other
business books, computer system records, explosives unless
otherwise expressly stated in the policy.”
Insurers are requested to make a note of the change and advise the
operating offices accordingly.
Secretary
6 Loss, destruction or damage to the stocks in Cold Storage premises caused
by change of temperature.
7 Loss, destruction or damage to any electrical machine, apparatus, fixture, or
41
SECTION - 11
fitting arising from or occasioned by over-running, excessive pressure, short

circuiting, arcing, self heating or leakage of electricity from whatever cause
(lightning included) provided that this exclusion shall apply only to the
particular electrical machine, apparatus, fixture or fitting so affected and not
to other machines, apparatus, fixtures or fittings which may be destroyed or
damaged by fire so set up.
8 Expenses necessarily incurred on (i) Architects, Surveyors and Consulting

Engineer's Fees and (ii) Debris Removal by the Insured following a loss,
destruction or damage to the Property insured by an insured peril in excess
of 3% and 1% of the claim amount respectively.
9 Loss of earnings, loss by delay, loss of market or other consequential or

indirect loss or damage of any kind or description whatsoever.
10 Loss, or damage by spoilage resulting from the retardation or interruption or

cessation of any process or operation caused by operation of any of the
perils covered.
11 Loss by theft during or after the occurrence of any insured peril except as
provided under Riot, Strike, Malicious and Terrorism Damage cover.
12 Any Loss or damage occasioned by or through or in consequence directly or

indirectly due to earthquake, Volcanic eruption or other convulsions of
nature.
13 Loss or damage to property insured if removed to any building or place other

than in which it is herein stated to be insured, except machinery and
equipment temporarily removed for repairs, cleaning, renovation or other
similar purposes for a period not exceeding 60 days.
(B) GENERAL CONDITIONS
1. THIS POLICY shall be voidable in the event of mis-representation,

mis-description or non-disclosure of any material particular.
2. All insurances under this policy shall cease on expiry of seven days from the
date of fall or displacement of any building or part thereof or of the whole or
any part of any range of buildings or of any structure of which such building
forms part.
PROVIDED such a fall or displacement is not caused by insured perils, loss
or damage which is covered by this policy or would be covered if such
building, range of buildings or structure were insured under this policy.
Notwithstanding the above, the Company subject to an express notice
being given as soon as possible but not later than seven days of any such
42
SECTION - 11
fall or displacement may agree to continue the insurance subject to revised

rates, terms and conditions as may be decided by it and confirmed in writing
to this effect.
3. Under any of the following circumstances the insurance ceases to attach as

regards the property affected unless the Insured, before the occurrence of
any loss or damage, obtains the sanction of the Company signified by
endorsement upon the policy by or on behalf of the Company :-
a. If the trade or manufacture carried on be altered, or if the nature of the

occupation of or other circumstances affecting the building insured or
containing the insured property be changed in such a way as to increase
the risk of loss or damage by Insured Perils.
b. If the building insured or containing the insured property becomes

unoccupied and so remains for a period of more than 30 days.
FT / 5 / 2004 CIRCULAR Date : 13th May, 2004
Re: Deletion of Condition no. 3(b) of Standard Fire and Special

Perils Policy
Arising out of a representation from an insurer it has been decided

to allow insurers to delete condition no-3(b) of Standard Fire and
Special Perils policy for dwellings rateable under Section III.
Insurers are requested to advise their operating offices suitably.

Secretary
c. If the interest in the property passes from the insured otherwise than by
will or operation of law.
4. This insurance does not cover any loss or damage to property which, at the
time of the happening of such loss or damage, is insured by or would, but for
the existence of this policy, be insured by any marine policy or policies
except in respect of any excess beyond the amount which would have been
payable under the marine policy or policies had this insurance not been
effected.
5. This insurance may be terminated at any time at the request of the Insured,
in which case the Company will retain the premium at customary short
period rate for the time the policy has been in force. This insurance may also
at any time be terminated at the option of the Company, on 15 days' notice to
that effect being given to the Insured, in which case the Company shall
be liable to repay on demand a rateable proportion of the premium for the
unexpired term from the date of the cancellation.
43
SECTION - 11
6. (i) On the happening of any loss or damage the Insured shall forthwith give
notice thereof to the Company and shall within 15 days after the loss or
damage, or such further time as the Company may in writing allow in that
behalf, deliver to the Company
a) A claim in writing for the loss or damage containing as particular an

account as may be reasonably practicable of all the several articles
or items or property damaged or destroyed, and of the amount of the
loss or damage thereto respectively, having regard to their value at
the time of the loss or damage not including profit of any kind.
b) Particulars of all other insurances, if any
The Insured shall also at all times at his own expense produce,
procure and give to the Company all such further particulars, plans,
specification books, vouchers, invoices, duplicates or copies thereof,
documents, investigation reports (internal/external), proofs and
information with respect to the claim and the origin and cause of the
loss and the circumstances under which the loss or damage occurred,
and any matter touching the liability or the amount of the liability of the
Company as may be reasonably required by or on behalf of the
Company together with a declaration on oath or in other legal form of
the truth of the claim and of any matters connected therewith.
No claim under this policy shall be payable unless the terms of this
condition have been complied with
(ii) In no case whatsoever shall the Company be liable for any loss or
damage after the expiry of 12 months from the happening of the loss or
damage unless the claim is the subject of pending action or arbitration; it
being expressly agreed and declared that if the Company shall disclaim
liability for any claim hereunder and such claim shall not within 12
calendar months from the date of the disclaimer have been made the
subject matter of a suit in a court of law then the claim shall for all
purposes be deemed to have been abandoned and shall not thereafter
be recoverable hereunder.
7. On the happening of loss or damage to any of the property insured by this

policy, the Company may
a) enter and take and keep possession of the building or premises where
the loss or damage has happened.
b) take possession of or require to be delivered to it any property of theInsured

in the building or on the premises at the time of the loss or damage.
44
SECTION - 11
c) keep possession of any such property and examine, sort, arrange,

remove or otherwise deal with the same.
d) sell any such property or dispose of the same for account of whom it may
Concern.
The powers conferred by this condition shall be exercisable by the
Company at any time until notice in writing is given by the insured that he
makes no claim under the policy, or if any claim is made, until such claim is
finally determined or withdrawn, and the Company shall not by any act done
in the exercise or purported exercise of its powers hereunder, incur any
liability to the Insured or diminish its rights to rely upon any of the conditions
of this policy in answer to any claim.
If the insured or any person on his behalf shall not comply with the
requirements of the Company or shall hinder or obstruct the Company, in the
exercise of its powers hereunder, all benefits under this policy shall be
forfeited.
The Insured shall not in any case be entitled to abandon any property to the
Company whether taken possession of by the Company or not.
8. If the claim be in any respect fraudulent, or if any false declaration be made

or used in support thereof or if any fraudulent means or devices are used by
the Insured or any one acting on his behalf to obtain any benefit under the
policy or if the loss or damage be occasioned by the willful act, or with the
connivance of the Insured, all benefits under this policy shall be forfeited.
9. If the Company at its option, reinstate or replace the property damaged or

destroyed, or any part thereof, instead of paying the amount of the loss or
damage, or join with any other Company or Insurer(s) in so doing, the
Company shall not be bound to reinstate exactly or completely but only as
circumstances permit and in reasonably sufficient manner, and in no case
shall the Company be bound to expend more in reinstatement than it would
have cost to reinstate such property as it was at the time of the occurrence of
such loss or damage nor more than the sum insured by the Company thereon.
If the Company so elect to reinstate or replace any property the insured shall
at his own expense furnish the Company with such plans, specifications,
measurements, quantities and such other particulars as the Company may
require, and no acts done, or caused to be done, by the Company with a
view to reinstatement or replacement shall be deemed an election by the
Company to reinstate or replace.
If in any case the Company shall be unable to reinstate or repair the property
hereby insured, because of any municipal or other regulations in force
affecting the alignment of streets or the construction of buildings or
otherwise, the Company shall, in every such case, only be liable to pay such
45
SECTION - 11
sum as would be requisite to reinstate or repair such property if the same

could lawfully be reinstated to its former condition.
10. If the property hereby insured shall at the breaking out of any fire or at the
commencement of any destruction of or damage to the property by any other
peril hereby insured against be collectively of greater value than the sum
insured thereon, then the Insured shall be considered as being his own
insurer for the difference and shall bear a rateable proportion of the loss
accordingly. Every item, if more than one, of the policy shall be separately
subject to this condition.
11. If at the time of any loss or damage happening to any property hereby
insured there be any other subsisting insurance or insurances, whether
effected by the Insured or by any other person or persons covering the same
property, this Company shall not be liable to pay or contribute more than its
rateable proportion of such loss or damage.
12 The Insured shall at the expense of the Company do and concur in doing,
and permit to be done, all such acts and things as may be necessary or
reasonably required by the Company for the purpose of enforcing any rights
and remedies or of obtaining relief or indemnity from other parties to which
the Company shall be or would become entitled or subrogated, upon its
paying for or making good any loss or damage under this policy, whether
such acts and things shall be or become necessary or required before or
after his indemnification by the Company.
13. If any dispute or difference shall arise as to the quantum to be paid under this
policy (liability being otherwise admitted) such difference shall
independently of all other questions be referred to the decision of a sole
arbitrator to be appointed in writing by the parties to or if they cannot agree
upon a single arbitrator within 30 days of any party invoking arbitration,
the same shall be referred to a panel of three arbitrators, comprising of two
arbitrators, one to be appointed by each of the parties to the dispute/
difference and the third arbitrator to be appointed by such two arbitrators
and arbitration shall be conducted under and in accordance with the
provisions of the Arbitration and Conciliation Act, 1996.
It is clearly agreed and understood that no difference or dispute shall be

referable to arbitration as hereinbefore provided, if the Company has
disputed or not accepted liability under or in respect of this policy.
It is hereby expressly stipulated and declared that it shall be a condition

precedent to any right of action or suit upon this policy that the award by
such arbitrator/ arbitrators of the amount of the loss or damage shall be first
obtained.
46
SECTION - 11
14. Every notice and other communication to the Company required by these
conditions must be written or printed.
15. At all times during the period of insurance of this policy the insurance cover
will be maintained to the full extent of the respective sum insured in
consideration of which upon the settlement of any loss under this policy,
pro-rata premium for the unexpired period from the date of such loss to the
expiry of period of insurance for the amount of such loss shall be payable by
the insured to the Company.
The additional premium referred above shall be deducted from the net claim
amount payable under the policy. This continuous cover to the full extent will
be available notwithstanding any previous loss for which the company may
have paid hereunder and irrespective of the fact whether the additional
premium as mentioned above has been actually paid or not following such
loss. The intention of this condition is to ensure continuity of the cover to the
insured subject only to the right of the company for deduction from the claim
amount, when settled, of pro-rata premium to be calculated from the date of
loss till expiry of the policy.
Notwithstanding what is stated above, the Sum Insured shall stand reduced
by the amount of loss in case the insured immediately on occurrence of the
loss exercises his option not to reinstate the sum insured as above.
47
SECTION - 111
SECTION III
DWELLINGS, OFFICES, HOTELS, SHOPS, ETC., LOCATED OUTSIDE THE

COMPOUNDS OF INDUSTRIAL/MANUFACTURING RISKS
1 The 'Buildings' and 'Contents' of risks rateable under this Section shall be
rated 'per se'.
2 Stocks belonging to the insured stored in the open area adjacent to the
insured's premises are held covered.
3 Incidental operations such as grinding of lenses in optical frame shops,

polishing and/or varnishing in furniture shops, occasional repairs etc. are
permitted.
4 For seasonal storage of crackers during the currency of the policy in ' Shops
dealing in goods otherwise not provided', a loading of 10% shall be charged
on the rates applicable to 'contents'.
5 The presence of hazardous goods (as per list attached) not exceeding 5% of
the total value of the stock may be ignored.
6 The reduction in premium rates for deletion of STFI and /or RSMTD perils at
the inception of the policy shall be as under:
STFI Re.0.15%o
RSMD Re.0.10%o
7. Pump Houses, garages, compound walls and ancillary equipment and/or

other utilities at the above occupancies shall carry the respective occupancy
rate.
8. Detached/Segregated block(s) within a risk which are protected by

automatic sprinkler installations with their own independent pumping
arrangements as per the committee's rules for sprinkler installations shall be
allowed 5% reduction on the basic rate(s).
9 Long Term Policy For Dwellings:- Long Term Policies shall be issued based
on either of the following 2 methods subject to the conditions below to house
/flat owners only:
a) The policy shall be issued for a minimum period of 3 years.
b) No refund shall be allowed for mid-term cancellation of such policies.
c) Mid-term inclusion of perils shall not be allowed.
d) Premium for entire policy period shall be collected in advance.
48
SECTION - 111
FT/ 7 /2004 CIRCULAR Date : 18th May, 2004
Re : Long Term Policies for Dwellings
Reference is drawn to rule no. 9 - ‘Long Term policies for Dwellings’

under Section III of All India Fire Tariff restricting issuance of long term
policies only to house/flat owners.
Arising out of a representation from an insurer, it is clarified that insurers

are permitted to issue such policies only to house/flat owners and not
to others who do not own the house/flat.
Secretary
CIRCULAR
FT/ 4/2005 Date : 31st March 2005
Re: Section III - Rule 9(b) -Long Term Policy for Dwellings - All India
Fire Tariff
Arising out of requests received from insurers it has been decided to

modify with immediate effect rule no.9(b) of Section III of AIFT in
respect of ‘Long Term Policy for Dwellings’to read as under:
Rule 9(b): Refund on cancellation of Long term Policy at the request

of the insured may be allowed subject to the following conditions:
1. No refund shall be allowed if there has been a claim under

the policy.
1. If the policy is cancelled within 3 years of inception, the

premium to be retained shall be worked out as per normal
rates applicable - that is without allowing any discount.
2. If the policy is cancelled after 3 years of inception, the
discount slab shall be reworked for the number of years the
policy was actually in force. For this purpose fraction of a
year shall be rounded to the next higher year. For example if
the policy has run for 3 years and 3 months, premium shall be
retained for 4 years.
3. Refund, if any, shall be subject to the retention of minimum
premium of Rs.50/- as provided under Rule No.6 of Section I of
AIFT.
Secretary
49
SECTION - 111
Method A:
Premium shall be charged in full without any discount. However sum
insured under the policy shall be deemed to have increased by 10% of the
origional sum insured at the end of every 12 months period.
OR
Method B:
There shall not be any automatic increase in sum insured as in method A.
However appropriate discounts shall be allowable on applicable gross
premium as per table below:
Duration of Policy Premium to be Charged
3 years policy 3 years premium in advance less 15% discount
Policy for 10 years Entire premium in advance less 50% discount.

and above
N.B. Mid-term increase in sum insured shall be allowed on pro rata basis for
the balance period.
Clarification :
Letter No. Fire/19 [543] Date : 16/05/01
Discounts for Earthquake Cover for Long term policies for Flats and
houses cannot be allowed.
50
SECTION - 111
RATING SCHEDULE
Risk Rate Description Building Contents

code code r a t e P e r rate Per
mille mille
1 01 Dwellings, Places of worships, Libraries, 0.50 0.50

Museums, Schools, Colleges, Hospitals
including X-ray and other Diagnostic
clinics, Office premises, Meeting Rooms,
Auditoriums, Planetarium, Mess Houses,
Clubs, Marriage Halls, Showrooms and
display centres where goods are kept for
display and no sales are carried out, Edu-
cational and Research Institutes
impar ting training in various crafts,
Lodging/Boarding Houses, Cycle Shed
and Dish Antenna, Indoor stadiums.
FT/5 /2005 CIRCULARD a t e : 3 1 s t M a r c h 2 0 0 5
Re: Section III of All India Fire Tariff

Arising out of a representation from an insurer it has been decided to
insert two notes under the tariff item “Dwellings, Places of
worships,......”(Risk Code 1, Rate Code 01) providing rates for “Data
Processing/Call Centres/Business Process Outsourcing Centres”. The
modified tariff entry shall read as under:

mille mille
1 01 Dwellings, Places of worships, 0.50 0.50

Libraries, Museums, Schools,
Colleges, Hospitals including X-ray
and other Diagnostic clinics, Office
premises, Meeting Rooms,
Auditoriums, Planetarium, Mess
Houses, Clubs, Marriage Halls,
Showrooms and display centres
where goods are kept for display but
no sales are carried out. Eductional
and Research Institutes imparting
training in various crafts, Lodging/
Boarding Houses,Cycle Sheds Dish
Antenna and Indoor stadiums
51
SECTION - 111

mille mille
Note1:Data Processing/Call Centres/

Business Process Outsourcing
Centres may be covered by loading
the above rates by 50% subject to the
warranty that no software
development activity is carried on
within the premises.
Note 2: In case software development
activity is carried on within the pre-
mises, the risks shall be rated under
the tariff entry “Electronic Software
Parks” (Risk Code 073/Rate Code 04)
of Section IV of the AIFT.
this regard.
Secretary

mille mille
2 02 Cafes, Restaurants, Hotels, Confectioner 1.80 1.80

& Sweet meat sellers
FT/6/2002 CIRCULAR Date : 18/12/2002
Re : Rating of Health Resorts under All India Fire Tariff
The Tariff Advisory Committee has decided to rate the above

occupancy under Risk Code2, Rate Code02 of Section III of the AIFT.
Accordingly, the existing tariff entry stands modified as under :
Risk Rate Description of Risk B u i l d i n g contents ratePer
code code rate Per mille
mille
2 02 Cafes, Restaurants, 1.80 1.80
Hotels, Confectioner &
Sweet meat sellers,
Health Resorts.
52
SECTION - 111
renewals falling due on or after the date hereof.
Insurers are requested to inform their operating offices suitably in

this regard.
Secretary
Risk Rate Description of Risk Building contents

code code rate Per ratePer
mille mille
3 021 Shops dealing in goods otherwise not 1.80 2.80
provided for including Laundries,
Battery Charging Service Stations, Dry
Cleaning, Amusement parks,
Hoarding, Neon signs and Spor ts
Galleries, Outdoor stadiums.
4 022 Shops dealing in hazardous goods as per 1.80 3.80

the list below and Arms &
Ammunition dealers, Motor Vehicle show-
room including sales and service, Petrol
/ Diesel Kiosks
FT/29/2001 CIRCULAR Date :21-12-2001
Rating of CNG Compressor installed in Petrol/Diesel Kiosks and in

CNG Stations
The Tariff Advisory Committee decided to impose a loading of 10%
on the premium rate for the Petro/Diesel Kiosks rateable under
Section III of the AIFT where CNG compressors would be installed.
Accordingly the existing tariff entry stands modified as below :

Risk Rate Description of Risk Building Contents
code code rate %o rate %o
04 022 Shops dealing in hazardous goods 1.80 3.80

as per the list attached, Arms &
Ammunition dealers, Motor
Vehicle showrooms including
sales and service, Petrol / Diesel
Kiosks
Note : 10% loading is applicable on the rate for presence of CNG
installation(s) in Petrol/Diesel Kiosks.
53
SECTION - 111
The Committee had also decided to introduce a new tariff entry

"Compressor Houses" in Section V of the AIFT to take care of
compressors handling air, inert gas and CO2 and compressors for
handling CNG and similar materials as under:
Rate Description of Risk Rate (Rs.

code per mille)
Compressor Houses 1.50
05 Compressors handling air, Inert Gas and CO2

4.50
15 Compressor (others)
The above decision will be effective for all fresh business and re-
newals falling due on or after the date hereof.

this regard.
Secretary
FT/ 27/2001 CIRCULAR Date: 21.12.2001

Re: Rating of Health Club, Gymnasium and Swimming Pool under new
AIFT
Arising out of queries from Insurers the Tariff Advisory Committee has
decided as below :
1) Health Club, Gymnasium and Swimming pool :
It was decided to rate the above occupancies at Re.0.50 per mille under
Risk Code 1, Rate Code 01 of Section III of the AIFT.
2) Water Tanks:
It was decided to rate Water Tanks at a rate of Re.1.00 per mille under
Section V of AIFT meant for Utilities and Stand-alones. Accordingly, the
existing tariff item "Water Treatment Plants" in Section V stands modi-
fied as "Water Treatment Plants/Water Tanks"
Insurers are requested to inform their operating offices suitably in this
regard.
Secretary
54
SECTION - 111
FT/ 6/2004 CIRCULAR Date: 18.05.2004

Re: Rating of Multiplex Theatre Complexes under All India Fire Tariff
It has been decided to rate Multiplex Theatre Complexes containing
shopping malls, offices, restaurants, cinema theatres and utilities as
under: as per tariff item
‘cinema theatres’
i. entire complex except (risk code -051)under sec-
the contents : tion-IV or AIFT
ii. Contents : to be rated ‘per-se’ as per

relevent section of AIFT
The changes will be effective for all new business/renewals falling due
on or after 16th June, 2004.
Insurers are requested to inform their operating offices suitably in this
regard.
Secretary
LIST OF HAZARDOUS GOODS

1. Celluloid Goods
2. Coir Loose
3. Crackers and Fire Works
4. Explosives of any kind
5. Hay/Straw
6. Hemp
7. Jute Loose
8. Matches
9. Methylated Spirit
10. Nitro-Cellulose Plastics
11. Oils/Ether/Industrial Solvents and other inflammable liquids flashing
liquids flashing at and below 320 C (Closed Cup test)
12. Paints with inflammable base having Flash point below 320 C (Closed
Cup test) Other than in sealed tins or drums
13. Varnishes having Flash point below 320 C (Closed Cup Test) other
than in sealed tins or drums
14. Disinfectant liquids and liquid insecticides-other than in sealed tins or
drums
15. Vegetable fibres of any kind including Rayon Fibre
55
SECTION - 1V
SECTION IV
INDUSTRIAL/MANUFACTURING RISKS
SCOPE
Rates provided in this section are for the entire insured property in the same
industrial compound i.e. all process areas, storage areas, offices, utilities,
miscellaneous blocks, pipelines, roads, compound wall, cables, street light etc.
In cases where more than one product is manufactured in the same block, the
highest rate applicable shall be charged overall If two or more factories are
situated in the same compound or independent products are manufactured in
the same compound the manufacturing blocks shall be rateable `per se' if
located detached.. Auxiliaries/miscellaneous blocks/utilities and godowns /
tankfarms, pipelines, roads,,compound wall etc. in such cases shall carry
highest rate of all such manufacturing blocks.
Rules:
1 Operations incidental to the main process shall be rated at par with the main
process if such operations are carried out inside the main process blocks.
2 Dwelling houses located inside the factory compound may be rated " per se"
3 In case of any clarification, insurers may refer the matter to the Committee
after charging a provisional rate as per General Rule 1 (f), Section I.
Note 1: Detached/Segregated block(s) within a risk which are protected by

automatic sprinkler installation with its own independent pumping
arrangements, etc. as per the Committee's rules for sprinkler
installation shall be allowed 5% reduction on the basic rate(s).
Note 2. The reduction in premium rates for deletion of STFI and /or RSMTD
perils at the inception of the policy shall be as under:
STFI Re.0.25%o
RSMD Re.0.10%o
56
SECTION - 1V
RATING SCHEDULE
Risk Rate Description of Risk Rate (Rs.
code code per mile)
001 07 Abrasive Manufacturing 2.00
002 05 Aerated Water Factories 1.50
003 05 Aerial Ropeway including trolley stations 1.50
004 07 Agarbatti manufacturing 2.00
005 11 Aircraft Hangers 3.00
006 05 Airport Terminal Buildings (including all facilities 1.50
like Cafes, Shops etc) N.B: Airpor t Cargo
complex shall be rated under Section VI
007 18 Aluminium/ Magnesium Powder Plants 5.50
008 05 Aluminium ,Zinc,Copper Factories 1.50
009 07 Arecanut and/or Betelnut factories 2.00
010 05 Asbestos Steam Packing and lagging 1.50
manufacturing
011 07 Atta and Cereal Grinding (excluding Dal Mills) 2.00
012 12 Audio/Video Cassette Manufacturing 3.50
013 05 Automobile Manufacturing 1.50
FT/17/2001 CIRCULAR Date : 4-10-2001
Re : Rating of Automobile Filter Manufacturing
The Tariff Advisory Committee has decided to introduce a new tariff

item as below in Section IV of All India Fire Tariff to take care of the
above occupancy :
Rate Code Name of Tariff item Rate in Rs. per mille
09 Automobile Filter Mfg. 2.50
renewals falling on or after the date hereof.

this regard.
Secretary
57
SECTION - 1V

code code per mile)
014 05 Bakeries 1.50
015 15 Basket Weavers and Cane Furniture Makers 4.50
016 08 Battery Manufacturing 2.25
017 11 Beedi Factories 3.00
018 05 Biscuit Factories 1.50
019 14 Bitumenised Paper and / or Hessian Cloth 4.00

Manufacturing including Tar Felt Manufacturing.
020 09 Book Binders, Envelope and Paper Bag 2.50

Manufacturing
021 07 Breweries 2.00
022 03 Brickworks (including refractories and fire bricks) 1.00
023 05 Bridges - Concrete / Steel 1.50
024 07 Bridges - Wooden 2.00
025 03 Building In course of construction 1.00
026 09 Cable Manufacturing 2.50
027 11 Camphor Manufacturing 3.00
028 11 Candle Works 3.00
029 05 Canning Factories 1.50
030 05 Capsule Manufacturing 1.50
031 10 Carbon paper / Typewriter Ribbon 2.75

Manufacturing
032 07 Cardamom Factories 2.00
033 08 Cardboard Box Manufacturing 2.25
58
SECTION - 1V

code code per mile)
034 15 Carpenters, Wood wool Manufacturing, Furniture 4.50

Manufacturing and other wood worker shops
(excluding saw mill)
035 09 Carpet and Drugget Manufacturing (Cotton/jute/ 2.50

wool )
036 12 Carpet and Drugget Manufacturing (Others) 3.50
037 11 Cashew nut Factories 3.00
038 07 Cattle feed Mill 2.00
039 24 Celluloid Goods Manufacturing 15.00
040 05 Cement / asbestos/concrete products 1.50

Manufacturing
041 07 Cement Factories 2.00
042 05 Ceramic Factories and Crockery and Stoneware 1.50

pipe Manufacturing/Clay Works.
043 11 Chemical Manufacturing(Using materials with 3.00

Flash Point below 32OC), Bulk Drug
Manufacturing
044 08 Chemical Manufacturing(others), Pharmaceuti- 2.25

cals, Toiletry products
045 10 Cigar and Cigarette Manufacturing 2.75
046 12 Cigarette Filter Manufacturing (Using Solvents

with Flash Point below 32OC ) 3.50
047 10 Cigarette Filter Manufacturing (Others) 2.75
048 11 Cinema Film Production Studios 3.00
049 07 Cinematography Film Editing, Laboratory and 2.00

Sound recording rooms where Film processing is
carried out
59
SECTION - 1V

code code per mille)
050 05 Cinematography Film Editing, Laboratory and 1.50

Sound recording rooms without Film processing.
051 09 Cinema Theatres 2.50
052 22 Circus, Touring Drama Troupes and Touring 10.50

Cinema Theatres
053 05 Cloth Processing units situated outside the 1.75

compound of Textile mills
FT/ 3/2005 Date : 31st March 2005

Re: Cloth Processing units situated outside the compounds of Textile
mills -
Risk Code 053, Rate Code 05,
Section IV of AIFT
Arising out of a representation from an insurer, for the sake of greater clarity,
it has been decided to modify the above mentioned tariff entry to read as
under:

code code per mile)
053 05 (i) Cloth Processing Units situated outside the

complex/compound of the textile mills
1.75
and
(ii) Cloth processing units which are not
owned by the textile mills but are situated
within the textile mills complex/compound.

code code per mile)
054 18 Coal/Coke/Charcoal ball & briquettes 5.50

Manufacturing
055 09 Coal Processing Plants 2.50
60
SECTION - 1V
FT/7/2002 CIRCULAR Date : 18/12/2002
Re : Rating of Lignite Handling System under All India Fire Tariff

entry as below in section IV of AIFT to take care of the above
occupancy :
Risk Code Rate Code Name of Tariff Item Rate (Rs.per
mille)
55 9 Lignite Handling System 2.5

this regard.
Secretary.

code code per mile)
056 07 Coffee Curing, Roasting / Grinding 2.00
057 12 Coir Factories 3.50
058 12 Collieries - underground Mechinery and pit head 3.50

gear
Clarification
TAC letter Fire/40/15/936 dt. 16.12.2002
Re : Rate for Dragline Machine used in Collieries under Fire Policy
The fire committee has decided to rate the above machinery at

Rs.3.50%o applicable to the Tariff Item, "collieries (underground
machinery and pit head gear) with Risk Code 058 and Rate Code 12
under Section IV of the AIFT

code code per mile)
059 05 Condensed Milk Factories, Milk Pasturisings 1.50

Plants and Dairies
61
SECTION - 1V
FT/ 21/2001 CIRCULAR Date : 21-11-2001
Sub : Rating of Confectionery Manufacturing Plants under AIFT.
The Tariff Advisory Committee has decided to combine the follow-

ing entries with a single rate as below in the current All India Fire
Tariff to take care of the concerned occupancies :
Name of Tariff item Rate in Rs. per %o
Confectionery Manufacturing Plants,
Sugar Candy Manufacturing Plants and 1.75%o
Sweet meat Manufacturing Plants
Separate entries with different rates for the above items in the current
AIFT stand deleted.

this regard.
Secretary

code code per mile)
060 05 Confectionery Manufacturing 1.50
061 Contractors Plant and Machinery

13 At one location only 3.75
15 Anywhere in India (at specified locations) 4.50
062 12 Cork Products Manufacturing 3.50
063 22 Cotton Gin and Press Houses 10.50
064 15 Cotton Seed cleaning / Delinting Factory 4.50
62
SECTION - 1V

code code per mile)
065 05 Dehydration Factories 1.50
066 09 Detergent Manufacturing with Sulphonation Plant 2.50
067 08 Detergent Manufacturing (Others) 2.25
068 09 Distilleries 2.50
069 15 Duplicating/stencil paper Manufacturing 4.50
070 Electric Generation Stations

04 Hydro Power stations 1.25
05 Others 1.50
071 07 Electric Lamp /T.V. Picture Tube Manufacturing 2.00
072 08 Electronic Goods Manufacturing /Assembly 2.25
FT/4/2002 CIRCULAR Date : 7.4. 2003
Re : Rating of Electronic Software Parks
The Tariff Advisory Committee has amended the tariff item

“Electronic Software parks” appearing under section IV of All India
Fire Tariff to read under:
Risk Code Rate Code Description Rate (Rs.per

mille)
073 04 Electronic Software 1.25
Developement Unit/s
Insurers are requested to imake a note of the above change and

advise their operating offices accordingly.
Secretary.
63
SECTION - 1V

code code per mile)
074 07 Enamel-ware factories 2.00
075 04 Engineering Workshop - - Structural Steel 1.25

fabricators, Sheet Metal fabricators, Hot/Cold
Rolling, Pipe Extruding, Stamping, Pressing,
Forging Mills, Metal smelting, Foundries,
Galvanising works, Metal Extraction, Ore
processing (other than Aluminium, Copper, Zinc)
076 06 Engineering Workshop (Others), Clock/Watch 1.75

Manufacturing , Motor Vehicle Garages
077 22 Exhibitions, Fetes, Mandaps. 10.50
078 18 Explosives / Blasting Factories 5.50
079 08 Fertiliser Manufacturing (other than those rateable 2.25

under Petrochemical Tariff)
080 12 Filter and wax paper Manufacturing 3.50
081 18 Fireworks Manufacturing 5.50
082 08 Flax / Hemp Mills 2.00
083 12 Flour Mills 3.50
084 15 Foamed Plastics Manufacturing and / or 4.50

converting plants
085 15 Foam Rubber Manufacturing 4.50
086 15 French Polish Manufacturing 4.50
087 05 Fruit and vegetable drying/dehydrating factories 1.50
088 05 Fruit products and Condiment Factories (including 1.50

fruit pulp making)
089 07 Garment Makers, Topee, Hats and the like makers 2.00
64
SECTION - 1V

code code per mile)
090 07 Ghee Factories including vegetable Ghee mfg. 2.00
091 09 Glass Fibre Manufacturing 2.50
092 10 Glass wool Manufacturing 2.75
093 07 Glass Manufacturing 2.00

CIRCULAR
FT/ 8 /2004 D a t e : 1 8th May, 2004
Re : Rating Automobile Glass Manufacturing under AIFT
Arising out of a representation from an insurer it is clarified that the
process of manufacture of tempered windshield glasses used in
automobiles shall be rated under tariff entry ‘Glass manufacturing’ at
Rs 2.00%o (Risk code-093 and Rate code-07).
Secretary
Risk Rate Rate (Rs.
code code Description of Risk per mile)
094 07 Gold thread factories / Gilding factories 2.00
095 05 Granite Factories using inflammable solvents 1.50
096 03 Granite Factories (Others) 1.00
097 09 Graphite electrode Manufacturing 2.50
098 09 Grain/seeds disintegrating/crushing/ 2.50

Decorticating factories/ Dal mills.
099 09 Grease / Wax Manufacturing 2.50
100 05 Green Houses/ Algae/ Spirulina and the like 1.50
101 07 Gum/Glue/Gelatine Manufacturing 2.00
102 07 Gypsum board manufacturer 2.00
103 08 Hoisery,lace, Embroidery/Thread factories 2.25
65
SECTION - 1V

code code per mile)
104 05 Ice candy and Ice cream Manufacturing 1.50
105 05 Ice factories 1.50
106 11 Incandescent Gas mantle Manufacturing 3.00
107 07 Industrial Diamonds Manufacturing 2.00
108 11 Industrial Gas Manufacturing 3.00
109 09 Ink (excluding printing ink) Manufacturing 2.50
110 05 Jaggery Manufacturing 1.50
111 15 Jute Mills 4.50
112 12 Katha Manufacturing 3.50
113 07 Khandsari Sugar Manufacturing 2.00
114 09 Lac or Shellac Factories 2.50
115 12 Leather Cloth Factories 3.50
116 07 Leather Goods Manufacturing ( incl. boot/shoe) 2.00
117 05 Lime Kiln 1.50
118 09 Lithographic presses 2.50
119 15 Liquified Gas Bottling Plants 4.50
FT/1/2003 CIRCULAR Date : 17.03.2003
Re: Rating of standalone LPG Recovery plant
Tariff Advisory Committee has amended the existing tariff entry

“Liquified Gas Bottling Plant” with Risk Code 119 and Rate Code 15
under Section IV of the AIFT. The tariff entry is amended to read as
under
66
SECTION - 1V

code code per mile)
119 15 Liquified Gas Bottling/Recovery Plant 4.50
Secretary.

code code per mile)
120 07 Malt Extraction Plants 2.00
121 04 Man-made Fibre Manufacturing (using Cellulose) 1.25
122 05 Man-made Fibre Manufacturing Plant (Others) 1.50
123 07 Manure Blending works 2.00
124 18 Match Factories 5.50
125 15 Mattress and Pillow making 4.50
126 07 Metallizing works ( involving metals only) 2.00
127 11 Metallising Works (others) 3.00
128 09 Metal/Tin printers 2.50
129 07 Mica Products Manufacturing 2.00
130 07 Mineral Oil blending and processing 2.00
131 05 Mosaic Factories 1.50
132 05 Mushroom Growing Premises (Excluding Crops) 1.50
133 24 Nitro Cellulose Manufacturing 15.00
67
SECTION - 1V
FT/ 14/2001 CIRCULAR Date : 30.07.2001
Re: Revision of Tariff Item "Nitrocellulose Manufacturing"
The Tariff Advisory Committee has decided to revise the above

tariff entry "Nitrocellulose Manufacturing" to take care of the
Industrial grade nitrocellulose manufacturing . The revised tariff entry
shall read as under:
Risk Rate Description of Risk Rate (Rs.per mille)
Code Code
Nitro Cellulose
133 Manufacturing
18 Industrial Grade 5.50
24 Others 15.00
The revised rates would apply for all fresh business and renewals
falling on or after the date hereof.
Insurers are requested to instruct their operating offices suitably in

this regard
Secretary

code code per mile)
134 11 Non-woven fabric Manufacturing 3.00
135 13 Oil Extraction 3.75
136 09 Oil Distillation Plants (essential) 2.50
137 07 Oil Mills refining ( Veg/Animal) 2.00
138 07 Oil Mills (Vegetable) 2.00
139 12 Oil and Leather Cloth Factories 3.50
140 07 Paint factories (Water based) 2.00
68
SECTION - 1V

code code per mile)
141 13 Paint (others) & Varnish Factories 3.75
142 15 Paints - Nitrocellulose based 4.50
143 09 Pan Masala making 2.50
144 08 Paper and Cardboard Mills (includingLamination) 2.25
145 08 Particle Board Manufacturing 2.25
146 14 Pencil Manufacturing 4.00
147 08 Petroleum Coke Calcination 2.25
Clarification :
TAC Letter Fire/40/15/1073 dt 06.03.2003
Re : Fire Rating : Disposable Diaper Manufacturing
The Committee has decided to rate the above risk @ 2.25%o with
risk Code 144 and Rate Code 08 applicable to the tariff item "Paper
and Card Board Mills (including lamination) under Section IV of AIFT
FT/20/2001 CIRCULAR Date : 21-11-2001

Sub : Rating of 'Pilot Plants' under AIFT 2000
entry as below in Section V of All India Fire Tariff to take care of the
above occupancy
Name of Tariff item Rate in Rs. per %0
Pilot Plants Rate applicable to the manufacturing facility available

this regard.
Secretary
69
SECTION - 1V
FT/9/2003 CIRCULAR Date : 17.6. 2003
Re : Rating of plastic Goods Manufacturing (Excluding Foam

Palstics)
Arising out of representations from insurers, Tariff Advisory

Commitee has amended the existing tariff entry “ Plastic Goods
Manufacturing (excluding Foam Plastics)” with Risk Code 148, and
Rate Code 12 under Section IV of the AIFT with immediate effect.
The amended tariff entry reads as under :
Plastic Goods manufacturing (excluding Foam Plastics)
Risk Code Rate Code Description of Risks Rate (Rs.per

mille)
148 09 1. Using Plastic raw
matetialshaving calorific
value upto 15,000 btu/lb
Polyteatrafluoroethylene,
Polychorotrif
luroehtylene,Polywinyl
chloride, polyvinylidene
chlororide, 2.50
Polyvinylidene fluoride,
Chlorinated polyether,
Polycarbonate,
Polymethyl methacrylate,
Phenolformaldehyde,
Urea-formaldehyde.
Melamone-formaldhyde,
Polyurethane, Polyester,
Silicones.
148 12 II. Using Plastic raw
materials having calorific
value of above
15000 btu/ib
Polythylene,
Polypropylene, 3.50
Polystrene,
Poly-alphamethylstyrene,
Acrylonitrilebutadiene-
styrene, Polybutylene
Note: Plastic Goods Manufacturing using plastic raw materials not

listed above is rateable rate code 09 or 12 as per the calorific value
of the raw
70
SECTION - 1V
material used. For other plastic raw material for which calorific val-
ues are not known reference is to be made to TAC.
Foamed Plastics manufacturing and/or converting plants will con-

tinue to be rated as per Risk code 084 and Rate Code 15.
Secretary.

code code per mile)
148 12 Plastic Goods Manufacturing (excluding Foam 3.50

Plastics)
Plywood / Wood veneering Factories/ Laminating
149 18 Factories 5.50
Polyester Film Manufacturing / BOPP Film

150 05 Manufacturing 1.50
Port Premises including jetties and equipment

151 07 thereon And other port facilities 2.00
Note 1:- Storage areas within the port premises

shall be charged open storage rates under
section VI and/or under section VII as applicable.
Note 2:- No reduction in rates shall be allowed

for opting out STFI perils.
Poultry Farms (Excluding birds therein)

152 05 1.50
Presses for coir fibres/waste/Grass/fodder/boosa/
153 22 Jute 10.50
Presses for coir yarn / cotton/senna leaves

154 15 4.50
Presses for carpets, rugs and tobacco
155 12 3.50
Presses for hides and skins
156 10 2.75
Printing Ink Manufacturing / Roller composition
157 12 factories 3.50
71
SECTION - 1V

code code per mile)
158 09 Printing Press 2.50
159 05 Pulverising Plants(Metals and non-hazardous 1.50

goods)
160 11 Pulverizing Plants (Others) 3.00
161 11 Rice Mills 3.00
162 06 Rice Polishing Units 1.75
163 09 Rope works (Plastic), Assembling of Plastic 2.50

Goods such as Toys and the like
164 05 Rope Works (others) 1.50
165 11 Rubber Factories 3.00
166 12 Rubber Goods Mfg with Spreading 3.50
167 09 Rubber Goods Manufacturing without spreading 2.50
168 03 Salt crushing Factories and Refineries 1.00
169 18 Saw Mills (including Timber Merchants premises 5.50

where sawing is done).
170 07 Sea Food / Meat Processing 2.00
171 06 Silk Mills / Spun Silk Mills 1.75
172 12 Snuff Manufacturing 3.50
173 08 Soap Manufacturing 2.25
174 09 Sponge Iron Plants 2.50
175 11 Spray Painting, Powder coating 3.00
176 05 Stables (excluding animals) 1.50
177 07 Starch Factories 2.00
72
SECTION - 1V

code code per mile)
178 03 Stone quarries 1.00
179 07 Sugar Candy Manufacturing 2.00
180 05 Sugar factories 1.50
181 15 Surgical Cotton Manufacturing 4.50
182 05 Sweetmeat Manufacturing 1.50
183 05 Tanneries 1.50
184 07 Tapioca factories 2.00
185 14 Tarpaulin and canvas proofing factories 4.00
186 08 Tea blending/packing factories 2.25
187 09 Tea Factories 2.50
188 05 Telephone Exchanges 1.50
189 Textile Mills

08 Spinning mills 2.25
07 Composite mills 2.00
(Composite Mills are those where activities from
Blow Room to Cloth processing are involved)
190 05 Tile & Pottery works 1.50
191 03 Tiny sector Industries with values at risk not 1.00

exceeding Rs 10 lakhs
192 05 Tissue Culture Premises (Excluding Crops) 1.50
193 12 Tobacco Curing / Redrying Factories 3.50
194 12 Tobacco grinding/ crushing Manufacturing 3.50
195 20 Turpentine and rosin distilleries 6.50
196 08 Tyres and Tubes Manufacturing 2.25
73
SECTION - 1V

code code per mile)
197 11 Tyre Retreading and Resoling factories 3.00
198 07 Umbrella Assembly factories 2.00
199 09 Velvet Cloth manufacturing 2.50
200 05 Vermicelli factories 1.50
201 05 Weigh Bridges 1.50
202 06 Weaving Mills 1.75
203 22 Wheat Threshers 10.50
204 07 Wood seasoning/treatment/ impregnation 2.00
205 09 Wool cleaning and pressing factories 2.50
206 07 Woollen Mills 2.00
207 05 Yarn Processing 1.75
208 07 Zip fasteners Manufacturing 2.00
74
SECTION - V
SECTION V
UTILITIES LOCATED OUTSIDE THE COMPOUNDS OF

RULES
1. The reduction in premium rates for deletion of STFI and /or RSMTD perils
at the inception of the policy shall be as under:
Re 0.25%o
Re. 0.10%o
2. Detached/Segregated block(s) within a risk which are protected by automatic

sprinkler installation with its own independent pumping arrangements etc.
as per the Committee's rules for sprinkler installation shall be allowed 5%
reduction on the basic rate(s).
RATING SCHEDULE
Risk Rate Description of Risk Rate
Code Code (Rs.per mille)
5 08 Analytical / Quality Control Laboratories 2.25
6 05 Boiler House 1.50
FT/29/2001 CIRCULAR Date :21-12-2001
Rating of CNG Compressor installed in Petrol/Diesel Kiosks and in

CNG Stations
The Tariff Advisory Committee decided to impose a loading of 10%

on the premium rate for the Petro/Diesel Kiosks rateable under
Section III of the AIFT where CNG compressors would be installed.
Accordingly the existing tariff entry stands modified as below :
Risk Rate Description of Risk B u i l d i n g Contents

Code Code rate %o rate %o
04 022 Shops dealing in hazardous 1.80 3.80
goods as per the list attached,
Arms & Ammunition dealers,
Motor vehicle show rooms
including sales and service,
Petrol /Diesel Kiosks
75
SECTION - V
Note : 10% loading is applicable on the rate for presence of CNG

installation(s) in Petrol/Diesel Kiosks.
The Committee had also decided to introduce a new tariff entry
"Compressor Houses" in Section V of the AIFT to take care of
compressors handling air, inert gas and CO2 and compressors for
handling CNG and similar materials as under:
Compressor Houses
05 08 Compressors handling air, 1.50

Inert Gas and CO2
15 05 Compressor (others) 4.50


this regard.
Secretary

Code Code (Rs.per
mille)
7 03 Dam 1.00
8 05 Effluent / Sewage Treatment Plant 1.50
9 05 Electric Sub-Station 1.50
10 05 Electric transmission / Distribution lines 1.50
11 03 Pipe lines (carrying water only) 1.00
12 04 Pipe lines (others) 1.25
13 05 Pump House (Water) 1.50
14 09 Pump House (Others) 2.50
76
SECTION - V

Code Code (Rs.per
mille)
15 11 Railway tracks 3.00
16 07 Roads 1.00
17 03 Water Treatment Plant 1.00
FT/27/2001 CIRCULAR Date : 21.12.2001
Re: Rating of Health Club, Gymnasium and Swimming Pool under

new AIFT
Arising out of queries from Insurers the Tariff Advisory Committee

has decided as below :
1) Health Club, Gymnasium and Swimming pool :

It was decided to rate the above occupancies at Re.0.50 per mille
under Risk Code 1, Rate Code 01 of Section III of the AIFT.
2) Water Tanks:
It was decided to rate Water Tanks at a rate of Re.1.00 per mille
under Section V of AIFT meant for Utilities and Stand-alones.
Accordingly, the existing tariff item "Water Treatment Plants" in
Section V stands modified as "Water Treatment Plants/
Water Tanks"

in this regard.
Secretary
18 05 Wireless Transmitting Stations 1.50
77
SECTION - V
FT/26/2001 CIRCULAR Date : 21.12.2001
Re: Rating of Compound Walls, Fencing and Crematoriums
The Tariff Advisory Committee has decided to introduce the follow-

ing new tariff entries in Section V of the AIFT :
Rate Code Description of Risk Rate (Rs. per mille)
Boundary Walls
09 a) Made of combustible materials 2.50
05 b) Others 1.50
04 Electric Crematoriums 1.25

this regard.
Secretary
FT/ 2 /2005 Date : 4th March 2005
Re: Rating of “Loco-Shed” under AIFT
Arising out of a query in respect of rating of Loco-Sheds, it has

been decided to amend the existing tariff entry “Electric Sub-
Station” appearing under Section V of AIFT to read as under:
Risk Rate Description of Risk Rate (Re.per mille)

Code Code
9 05 Electric Sub-Stations, Loco Sheds 1.50

this regard.
Secretary
78
SECTION - VI
SECTION VI
STORAGE RISKS OUTSIDE THE COMPOUNDS OF

RULES:
1. Rates shown in this section shall apply to Buildings/Areas used for storage
of materials
2. Operations such as packing/selecting/assorting/mending/stitching/battery

charging and like which do not materially alter the nature of risk are allowed
to be carried out in premises.
3. The presence of hazardous goods of higher category (as per Committee's

list of hazardous goods booklet) not exceeding 5% of the total value of the
stocks may be ignored.
4. Utilities and miscellaneous blocks shall be rated at Re. 1.00 per mille.
5. The reduction in premium rates for deletion of STFI and /or RSMTD perils at
the inception of the policy shall be as under:
Materials in Godown Materials in Open
STFI Rs.0.25%o Rs.1.50%o

RSMTD Rs.0.10%o Rs.0.10%o
1. Incidental open storages upto 2% of sum insured on stock can be allowed

when the risk is rated under materials stored in godowns.
2. Detached/Segregated block(s) within a risk which are protected by

automatic sprinkler installation with its own independent pumping
arrangements, etc. as per the Committee's rules for sprinkler installation
shall be allowed 5% reduction on the basic rate(s).
79
SECTION - VI
FT/8/2002 CIRCULAR Date : 18/12/2002
Re : Rating of Bus Terminus
The Tariff Advisory Committee has decided to rate the above

occupancy at Rs.6.00%o at par with vehicles in open/ vehicle park-
ing area under Section VI with Risk Code no. 20 and Rate code 19.

this regard.
Secretary.
80
SECTION - VI
RATING SCHEDULE
Risk Description of Risk Materials Stored in
Code
Godowns And Open
Silos
Rate R a t e Rate R a t e
Code (Rs. per Code ( R s .
mille) p e r
mille)
19 Storage of Non-hazardous 03 1.00 09 2.50

goods subject to warranty that
hazardous goods of Cat-
egory I, II, III , Coir waste, Coir
fibre and Caddies are not
stored therein.
20 Storage of Category I 09 2.50 19 6.00

hazaardous Goods subject to
warranty that goods listed in
Category II, III, Coir waste,
Coir fibre and Caddies are
not stored therein.
21 Storage of hazardous Goods 15 4.50 21 8.50

listed in Category II subject to
warranty that goods listed in
Category III, Coir waste, Coir
fibre and Caddies are not
stored therein.
22 Storage of hazardous Goods 18 5.50 22 10.50

listed in Category III subject
to warranty that Coir waste,
Coir fibre and , Caddies are
not stored therein.
23 Transpor ter's godowns & 18 5.50 22 10.50

Godowns of clearing and for-
warding agents.
24 Storage of Coir Waste ,Coir 23 12.00 25 17.00

Fibre, Caddies
25 Cold Storage premises 09 2.50 -- --
81
SECTION - VI
LIST OF HAZARDOUS MATERIALS AND GOODS AND

CATEGORISATION THEREOF ( PLEASE REFER COMMITTEE'S
PUBLICATION "LIST OF HAZARDOUS GOODS")
MODE OF CLASSIFICATION
Hazardous Materials not included in the list may be classified depending on
the properties indicated below :
Category I 1. Solids which are moderately or slightly combustible

2. Flammable liquids having flash points above 650 C.
3. Inert and non-combustible gases.
4. Highly toxic materials.
5. Waste of non-hazardous materials.
Category II 1. Pyrotechnic materials.

2. Flammable liquids having flash point above 320 C upto 650
C.
3. Moderate Oxidising Agents and Oxygen.
4. Materials which evolve combustible gases in contact with
water.
5. Waste of Category I materials.
Category III 1. Explosives.

2. Materials which are self ignitable.
3. Flammable liquids having flash point upto 320 C.
4. Strong Oxidising Agents.
5. Combustible gases.
6. Waste of Category II & III materials.
FT/ 18/2001 Date : 4-10-2001
Re: Fire rating for Tractors lying in open
Arising out of a representation the Tariff Advisory Committee has

decided to charge Category I storage rate i.e. Rs. 6.00 %o for ve-
hicles stored in the open including tractors.
newals falling on or after the date hereof.

this regard.
Secretary
82
SECTION - VII
SECTION VII
TANK FARMS/GAS HOLDERS OUTSIDE THE COMPOUNDS OF

INDUSTRIAL/ MANUFACTURING RISKS
RULES
1. The reduction in premium rates for deletion of STFI and /or RSMD
perils at the inception of the policy shall be as under:
STFI Re.0.25%o
RSMD Re.0.10%o
2. All tanks located in the same dyke shall carry the highest rate
applicable overall.
3. Utilities and Miscellaneous Blocks shall be rated at Re. 1.00%o
4. Associated properties such as Pumping Stations, Compressor House,

Blower House etc. shall be rated at par with the rate applicable to
respective Gas Holders/ Bullets /Spheres/Vessels/Tanks.

23 17 Gas Holders/ Bullets/spheres and 5.00

storages for liquified gases except for
Nitrogen, Carbon dioxide and inert gases
24 07 Gas Holders/ Vessels for Nitrogen, 2.00

Carbon dioxide and inert gases
25 12 Tanks containing liquids flashing at 3.50

32 0C and below
26 07 Tanks (others) 2.00
83
SECTION - VIII
SECTION VIII
ADD - ON COVERS
Standard Fire and Special Perils Policy (Policy) can be extended to

include the following `Add on' covers :
1. Architects, Surveyors and Consulting Engineers Fees

( in excess of 3% claim amount)
2. Removal of Debris (in excess of 1% claim amount)
3. (A) Deterioration 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) Deterioration 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 Insured's premises
due to operation of insured peril
4. Forest Fire
5. Impact Damage due to Insured's own Rail/Road Vehicles,

Fork lifts, Cranes, Stackers and the like and articles dropped
therefrom
6. Spontaneous Combustion
7. Omission to Insure additions, alterations or extensions
8. Earthquake (Fire and Shock)
9. Spoilage Material Damage Cover
10. Leakage And Contamination Cover
11. Temporary Removal of Stocks Clause
12. Loss Of Rent clause
13. Insurance Of Additional Expenses of Rent For An Alternative

Accommodation
14. Start up Expenses
84
SECTION - VIII
Rates to be charged for such add-on covers shall be as under:
Rate Add-On Cover Rates Value on which

Code applicable premium has to be
charged
1001 Architects, Surveyors and Policy Rate Specified sum

Consulting Engineers Fees insured not exceed-
( in excess of 3% claim ing 7.5% of claim
amount) amount
1002 Removal of Debris (in Policy Rate Specified sum

excess of 1% claim amount) insured upto
maximum 10% of
sum insured
1003 (A) Deterioration of Stocks in 25% of Sum insured of

Cold Storage premises due Policy Rate stocks
to accidental power failure
consequent to damage at the
premises of Power Station
due to an insured peril
1004 (B) Deterioration of stocks in Policy Rate Sum insured of

cold storage premises due to stocks
change in temperature
arising out of loss or damage
to the cold storage
machinery(ies) in the
Insured’s premises due to
operation of insured peril.
1005 Forest Fire Minimum Specified sum

Rs. 5 per insured
mille
1006 Impact Damage due to 5% of Policy Policy Sum insured

Insured’s own Rail/Road Rate
Vehicles, Fork lifts, Cranes,
Stackers and the like and
articles dropped therefrom.
1007 Spontaneous Combustion Sum insured of

1107 Category I goods Rs.0.25%o relative commodity
1207 Category II goods Rs.0.50%o
85
SECTION - VIII

charged
1307 Category III goods Rs.0.75%o

1407 Category IV goods Rs.1.00%o
1008 Omission to Insure additions, Policy Rate 5% of sum insured

alteration or extensions of BMA
1009 Earthquake (Fire and Shock) Policy sum Insured

1109 Zone I Rs.1.00%o
1209 Zone II Rs.0.50%o
1309 Zone III Rs.0.20%o
1409. Zone IV Rs.0.10%o
Note :- Dwelling, offices, hotels, shops etc rateable under Section III of the
tariff can be covered by charging a uniform rate of Re 0.10%0 regardless
of the zones
Spoilage Stocks in specified blocks : Value of stocks in
Material 5 times the Policy Rate specified blocks
Damage
Cover
Machinery, Containers & M/A value in specified
1010 blocks.
Equipments in specified blocks :
2.5 times the Policy Rate
1011 Leakage And Contamination Leakage Leakage &

Cover Cover Contami-
only nation
1111 Where the tanks are within the Rs.5%o Rs.10%o Specified
Insured’s own premises sum
insured
1211 Where the tanks are located Rs.6%o Rs.12%o
elsewhere
1012 Temporary Removal of 10% of Policy sum insured

Stocks Clause policy Rate
1013 Loss of Rent clause Policy Rate Specified sum insured
86
SECTION - VIII

charged
1014 Insurance Of Additional Policy Rate Specified sum insured

Expenses of Rent For An
Alternative Accommodation
1015 Start up Expenses Policy Rate Specified sum insured
Note:-1 Mid-term inclusion of the Add-On Covers is permissible subject to the

provisions under Rules 4a, 4b and 4c of Mid-term cover, General Rules and
Regulations, Section I. Annual premium shall be charged for such mid-term in-
clusions. Also no refund of premium shall be made on the add-on covers being
cancelled mid-term unless the Policy is cancelled simultaneously or
replaced by a fresh insurance including add-on covers for an identical or
increased amount.
Note:- 2 Policy Rate means either Policy Rate in case of specific industries or
Average rate in case of multiple products manufacturing industries.
FT/ 12 /2004 CIRCULAR Date : 29 - 6-2004
Re: Rates for Add-on covers under AIFT.
It is clarified that rates for add-on perils namely, earthquake,

terrorism, spontaneous combustion and forest fire are to be added
(whenever such perils are opted) to the policy rate for providing
add-on covers like architects, surveyors & consulting engineers
fees, removal of debris, deterioration of stocks in cold storage
premises, start up expenses etc.
Insurers are requested to note the above clarification and advise

their operating offices suitably.
Secretary
87
SECTION - VIII
FT/16/2001 CIRCULAR 30-7-2001
Re: Rating of pipelines for earthquake cover located outside the

compounds of Industrial Complex including their contents.
The Tariff Advisory Committee has decided to charge a single rate

of Re. 0.35%o irrespective of the earthquake zones for extending
the Standard Fire and Special Perils Policy to cover Earthquake (Fire
& Shock ) for the pipelines located outside the compounds of in-
dustrial complex and passing through different Earthquake zones.
This rate shall apply for the contents of the pipelines also.
newals falling on or after the date hereof.

this regard.
Secretary
Clarification :
TAC Letter Fire/434(920) dt. 16.12.2002
Re : Clarification on Vew AIFT w.e.f. 31.03.2001 Rates applicable to
"Add-on Covers"
1. For the sake of uniform interpretation the final rate arrived at as

per the computation table provided under Rule 21 of Section I of
AIFT shall be taken as "policy rate" for the purpose of rating
"Add-on covers" wherever reference has been made to "policy
rate"
2. "Average rate" mentioned in note 2 under the rating table for

"Add-on covers" in Section VIII is to be interpreted as weighted
average of the final rates as per Rule 21 of Section I of AIFT of all
the products manufactured in the same compound in case of
multiple products manufacturing industries
88
SECTION - VIII
CLASSIFICATION OF EARTHQUAKE ZONES - DISTRICT WISE

STATE/UNION ZONE DISTRICTS
TERRITORY
ANDAMAN & I Entire Union Territory

NICOBAR
ISLANDS
ANDHRA III West Godavari, Krishna, Khammam, Warangal,

PRADESH Karimnagar, Anantapur.
IV Chitoor, Nellore, Cuddapah, Kurnool

Mahboobnagar, Ranga Reddy, Medak,
Nizamabad, Adilabad, Nalgonda, Prakasam,
East Godavari, Visakhapatnam, Guntur,
Vizianagarm, Srikakulam, Hyderabad and
Yanam (Pondicherry)
ARUNCHAL I Entire State

PRADESH
ASSAM I Entire State
BIHAR I Sitamarhi, Madhubani, Darbhanga, Saharsa.
II Purnia, Champaran (East), Champaran (West),

Katihar, Bighusarai, Samastipur, Muzaffarpur,
Gopalganj, Siwan, Saran, Vaishali, Nalanda,
Patna, Monghyr, Bhagalpur.
III Santhal pragana, Bhojpur, Rohtas, Gaya,

Aurangabad.
CHANDIGARH II Entire Union Territory.
CHATTISGARH III Surguja, Raigarh, Muhasmud, Jashpur
IV Bastar, Bilaspur, Durg, Raipur, Kavardha, West

Surguja, Rajnandgaon, Korba, Dantewara,
Dhamtari, Janjgir, Kanker
DELHI II Entire State
GOA III Entire State
GUJARAT I Katch
II Jamnagar.
89
SECTION - VIII
III Rajkot, Surendernagar, Mehsana, Banaskantha,

Sabarkantha, Panchmahal, Baroda, Kheda,
Ahmedabad, Bhavnagar, Amreli, Junagadh,
Bharuch, Surat, Valsad, Dang (Ahwa),
Gandhinagar, Union Territories-of Diu, Daman,
Dadra and Nagar Haveli.
HARYANA II Ambala, Sonepat, Rohtak, Karnal, Gurgaon,

Faridabad, Panipat, Rewari, Yamunanagar.
III Kurukshetra, Jind, Hissar, Bhiwani,

Mahendragarh, Kaithal
IV Sirsa.
HIMACHAL I Chamba, Kullu, Kangra, Una, Hamirpur, Mandi,

PRADESH Bilaspur.
II Lahul and Spiti, Kinnaur, Shimla, Solan, Sirmaur.
JAMMU & I Baramula, Srinagar,

KASHMIR
II Gilgit, Chilas, Gilgit Wazarat, Muzaffarabad,
Punch, Anantnag, Mirapur, Riasi, Udhampur,
Jammu, Kathua, Leh, Tribal Territory.
JHARKHAND III Hazirabagh, Palamau, Giridh, Dhandbad,

Sahibganj, Pakaur, Lohardaga, Koderma, Godda,
Garwah, Dumka, Deogarh, Chatra, Bokaro.
IV Ranchi, East Singhbhum, West Singhbhum,

Gumla
KARNATAKA III Dakshin Kannad.
IV Belgaum, Bijapur, Bidar, Gulbarga, Raichur,

Bellary, Dharwad, Shimoga, Chitradurga,
Chikmagalur, Tumkur, Hassan, Bangalore, Kolar,
Kodagu, Mandya, Mysore, Uttar Kannnad.
KERALA III Entire State and Mahe (Pondichery)
LAKSHADWEEP IV Entire Union Territory.
MADHYA III West Nimar, East Nimar, Betul, Chhindwara,

PRADESH Hoshangabad, Raisen, Narsimhapur,
Jabalpur, Shahdul, Sidhi.
90
SECTION - VIII
IV Balaghat, Bhind, Bhopal, Chhatarpur, Damoh,

Datia, Dewas, Dhar, Guna, Gwalior, Indore,
Jhabua, Mandsaur, Mandla, Morena, Panna,
Rajgarh, Sagar, Satna, Sehore, Shajapur,
Shivpuri, Tikamgarh, Ujjain, Vidisha, Ratlam,
Rewa, Seoni.
MAHARASHTRA I Ratnagiri, Satara.
III Sindhudurg, Kolhapur, Pune, Nasik,

Chandrapur, Thane, Raigad, Dhule, Greater
Bombay.
IV Sangli, Solapur, Osmanabad, Latur, Bid,

Ahmadnagar, Nanded, Parbani, Jalna,
Aurangabad, Akola, Yavatmal,
Amravati, Wardha, Nagpur, Bhandara,
Gadchiroli, Buldana, Jalgaon.
MANIPUR I Entire State.
MEGHALAYA I Entire State.
MIZORAM I Entire State.
NAGALAND I Entire State.
ORISSA III Cuttack, Dhenkanal, Sambalpur.
IV Puri, Koraput, Kalahandi, Bolangir, Balasore,

Keonjhar, Mayjurbhganj, Baudhkhondmals,
Ganjam, Sundargarh.
PONDICHERRY IV Entire Union Territory.
PUNJAB II Gurdaspur, Hoshiarpur, Amritsar, Fatehgarh

Sahib, Kapurthala, Jalandhar, Ludhiana,
Rupnagar.
III Ferozepur, Faridkot, Patiala, Mansa, Sangrur,

Bhatinda.
RAJASTHAN III Jaisalmer, Alwar, Bharatpur, Barmer, Jalor,

Sirohi.
IV Ganganagar, Churu, Jhunjhunu, Jodhpur,

Nagaur, Sikar, Jaipur, Daulpur, Sawai
Madhopur, Tonk, Ajmer, Pali, Bhilwara, Bundi,
91
SECTION - VIII
Kota, Udaipur, Chittaurgarh, Jahlawar, Banswara,

Dungarpur, Bikaner.
SIKKIM II Entire State.
TAMILNADU III Nilgiri, Coimbatore, Kannyakumari, Tirunelveli.
IV Chengalpattu, North-Arcot,Tiruvannamalai, South

Arcot, Dharampuri, Salem, Periyar,
Trichirapalli,Thanjavur, Nagapattinam, Pudukottai,
Dindigul, Madurai, Kamarajar, Pasumpon,
Muthuramalinga Thevar, Ramanathapuram,
Chidambaranar, Chennai.
TRIPURA I Entire State.
UTTARANCHAL I Chamoli, Almora, Pithoragarn, Bageswar,

Champawat
II Uttarkashi, Tehri, Garwal, Dehradun, Pauri,

Garhwal, Nainital, Haridwar, Udamsinghnagar,
Rudraprayag
UTTAR PRADESH II Saharanpur, Muzaffarnagar, Bijnor, Moradabad,

Meerut, Ghaziabad, Rampur, Pilibhit,
Bulandshahr, Kheri, Bhraich, Gondha, Basti,
Gorakhpur, Deoria.
III Bareilly, Badaun, Shahejehanpur, Aligarh,

Mathura, Ethah, Hardoi, Sitapur, Agra, Mainpuri,
Farukkabad, Unnao, Lucknow, Barabanki, Rae
Bareli, Sultanpur, Faizabad, Azamgarh, Ballia,
Pratapgarh, Jaunpur, Ghazipur, Varanasi,
Mirzapur.
IV Etawah, Kanpur, Jalaun, Jhansi, Hamirpur,

Banda, Fatehpur, Allahabad, Lalitpur.
WEST BENGAL I Cooch Bihar.
II Darjeeling, West Dinajpur, Jalpaiguri, Calcutta, 24

Parganas, Maldah.
III Murshidabad, Birbhum, Bardhaman, Hoogli,

Howrah, Nadia, Bankura, Midnapore.
IV Purulia
92
SECTION - VIII
Classification of materials according to the severity of the spontaneous

combustion properties is as shown below. In case a particular material is not
listed under any of the following categories, reference shall be made to the Com-
mittee for a ruling.
Category I (Low or Non-Existent)
Name of Materials
1. Acetone 26. Ethyl Glycol

2. Acids (except stearic Acid) 27. Film Lacquer
3. Amyl Acetate 28. Films (Safety and Non-safety)
4. Aniline 29. Fireworks of all kinds and/or
colour matches
5. Bagasse 30. Grains and /or Seeds
6. Bamboo Stocks 31. Groundnut Oil
7. Betel Nuts 32. Groundnut (Shelled)
8. Beedi Leaves & Beedies 33. Hides
9. Bitumen 34. Ixtle
10. Black Pepper 35. Jaggery in bags and/or loose
11. Carbitol 36. Jute - twine
12. Cardamom 37. Jute in bales and/or loose
13. Castor Oil 38. Kappas (unginned cotton)
14. Caustic Soda 39. Kerosene oil
15. Celluloid Tubes 40. Lamp Black
16. Chillies 41. Lanoline
17. Chrome yellow & Bronze Blue 42. Lard Oil (Pure)
18. Clean Cotton (Loose and/or in
balesIncluding clean Cotton Waste) 43. Linseed
19. Coconut Oil 44. Mahul Leaves
20. Copra, Copra Seed, Copra Meal 45. Mahuva flowers
21. Cotton Seed 46. Matches
22. Crysylic Acid 47. Metal Turnings
23. Diesel Oil, Engine Oil and Grease 48. Methanol in drums
24. Dry Coconuts 49. Molasses
25. Dry Ginger 50. Mustard Oil (Black), Mustard
seed and other oil seeds
51. Napthanic Acid 69. Scrap Leather
52. Neat food oil 70. Sisal
53. Nitro benzol (Nitrobenzene) 71. Snuff
54. Nitro Cellulose (in drums or barrels) 72. Spent earth with or without carbon
55. Oleic Acid 73. Spices
56. Olive Oil (Pure) 74. Spirits
57. Palm Oil 75. Staple Fibre
93
SECTION - VIII
Name of Materials
58. Petrol 76. Sugar

59. Petroleum Produtcs 77. Sulphur
60. Phenol 78. Tallow
61. Plastic Goods 79. Tobacco-Loose and/or in bags
62. Powdered eggs 80. Tapioca chips
63. Powdered Milk 81. Turpentine
64. Polysizer (Sizing Material) 82. Turmeric
65. Pulses 83. Wall board
66. Rangolite (Sodium Formaldehyde
Sulphoxylate) 84. Wood pulp
67. Saw Dust 85. Wool (excluding wool waste)
68. Scrap Film (Nitrate) 86. Xylene
Category II (Moderate)
Name of the Materials

1. Bone Oil 25. Maize (Corn) Oil
2. Cardboards 26. Manuers except Fish Manure
3. Cocoa Bean Shell 27. Metal Powders
4. Copra Cake 28. Mowra Flowers
5. Corn Oil (Maize Oil) 29. Oil Cake-Loose and/or in bags
6. Cotton Seed Expeller 30. Olive Oil (Impure)
7. Cotton Seed de-oiled cake 31. Paints containing drying Oil
8. Cotton Seed oil 32. Paint scrapings
9. Craft paper 33. Pine Oil
10. Expelled Groundnut Cake 34. Red Oik
11. Feeds -Various 35. Rice Bran and Rice Husk
12. Fertilizers, Organic or Containing 36. Rice Konda
Nitrates and mixture thereof 37. Rice Straw
13. Foam Rubber Goods 38. Roofing Relt and Papers
14. Groundnut (de-oiled Cakes) 39. Scrap Rubber and / or Buffing
15. Hay and Grass 40. Soap Powder & Chips
16. Hydrogen Peroxide 41. Solvent Extraction
17. Hydrosulphite or Hydrosulphate of 42. Soyabean Oil
soda or Sodium Hydrosulphate or 43. Tarpaulin
Sodium Hydrosulphite 44. Tung Oil.
18. Iron Pyrites 45. Urea
19. Karadi Cake 46. Waste Paper
20. Karadi (de-oiled Cake) 47. Whale Oil
21. Karadi Oil 48. Wheat Husk
22. Lime, Unflaked (Calcium Oxide) 49. Wool Waste and Paper Waste
23. Liquid Ammonia 50. Zinc Dust
24. Lubricants excluding Petroleum 51. Feeds ( Various)
Products
94
SECTION - VIII
Category III (Variable)
1. Chemicals (Category I, II, III not 10. Oily Cotton

specified otherwise)
2. Coaltar 11. Paints and Varnish excluding
Synthetic Enamel
3. Colours 12. Perilla Oil
4. Dyes and/or Chemicals 14. Rags
5. Filter Cloth (Used) 15. Super Phosphate
6. Fire Wood 16. Synthetic Resins
7. Gunnies or Bardan 17. Sodium Nitrate
8. Manhaden Oil 18. Yellow Phosphorus
9. Monomers for Polymerisation 19. Stearic Acid
Category IV (High)
1. Alfalfa Meal 12. Oiled Clothings

2. Cod Liver Oil 13. Oiled Fabrics
3. Corn Meal Feeds 14. Oiled Rags
4. Empire cloth 15. Oiled Silk
5. Fish Meal 16. Groundnut (Red Skin)
6. Fish Oil 17. Synthetic Enamels
7. Fish Manure 18. Tunginut Meals
8. Fish Scrap 19. Varnished Fabrics
9. Lard Oil (Commercial or Animal Oils) 20. Waste of all kinds (Except wool
and paper waste) including Oily
and/ or greasy waste.
10 Linseed Oil
11. Nitro Cellulose Lacquers 21. Sponge Iron
22. Coal
95
ANNEXURE ‘A’
ANNEXURE ‘A’ - STANDARD CLAUSES
Policy Endorsement Wordings:
1. Architects, Surveyors and Consulting Engineers Fees ( in excess of 3%

of the claim amount)
Policy may be extended to cover the above subject to following

endorsement wordings."It is hereby declared and understood that
the expenses incurred towards Architects, Surveyors and Consulting
Engineers fees for plans, specification tenders, quantities and services in
connection with the superintendence of the reinstatement for the Building,
Machinery, Accessories and equipment insured under this policy upto 7.5%
of the adjusted loss is covered, but it is understood that this does not include
any cost in connection with the preparation of the Insured's claim or estimate
of loss in the event of damage by insured perils".
2. Removal of Debris (in excess of 1% of the claim amount)

endorsement wordings:
It is permissible to cover cost necessarily incurred by an insured in the

removal of debris from the premises of the insured, dismantling,
demolishing, shoring up or propping of Insured proper ty following
destruction or damage by Insured Peril by incorporating the following clause:
"On costs and expenses necessarily incurred by the insured
(a) In the removal of debris from the premises of the Insured;

(b) dismantling or demolishing;
(c) shoring up or propping;
of the portion or portions of the property insured by (Items.......... of) this policy
destroyed or damaged by perils hereby insured against but not exceeding in
the aggregate Rs. ..................
"Note: 1. (b)& (c) above should be deleted when neither Building nor
Machinery are covered.
Note: 2.The cover may be given by separate item in the policy for an amount
not exceeding 10% of the total Sum Insured.
3. (A) Deterioration 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
96
ANNEXURE ‘A’
Policy covering stocks in cold storage premises may be extended to cover

the above subject to following endorsement wordings:
"In consideration of the payment of additional premium of Rs. __________ it

is hereby agreed and declared that notwithstanding anything to the contrary
in this policy or in any of its conditions, this policy covers destruction of or
damage to the property hereby insured caused by change of temperature in
consequence of failure of electric supply at the terminal ends of electric
service feeders from which the Insured obtains electric supply directly due to
damage caused by any peril insured against under this policy to property at
insured premises or any Electric Station or Sub-Station of Public Electric
Supply undertaking from which the Insured obtains electric supply.
Provided that the Company shall not be liable for any loss occasioned by the
deliberate act of the Government, Municipal or Local Authority or Supply
Authority not performed for the sole purpose of safeguarding life or
protecting any part of the supply undertaking's systems or by the exercise by
any such authority of its power to withhold or restrict or ration supply not
necessitated solely by damage to the Supply Undertaking's generating or
supply equipment by an insured peril.
Provided further that the Company shall not be liable for any loss unless the
duration of each such failure exceeds 24 hours.
Subject otherwise to the terms, exceptions, conditions and limitations of this

Policy.
"In any action, suit or other proceedings where the company alleges
that by reason of the provisions of this condition any loss or damage is not
covered by this insurance, the burden of proving that this loss or damage is
covered shall be upon the Insured.
3. (B) Deterioration 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 Insured's premises due to operation of insured
peril.

* "In consideration of the payment of additional premium of Rs.__________ it

is hereby agreed and declared that notwithstanding anything to the contrary
in this policy or in any of its conditions this policy covers destruction of or
damage to the property herby insured caused by change of temperature in
consequence of failure of electric supply following damage to Insured's
property due to insured peril(s).
97
ANNEXURE ‘A’
Provided that the Company shall not be liable for any loss occasioned by the
deliberate act of the Government, Municipal or Local Authority or Supply
Authority not performed for the sole purpose of safeguarding life or
protecting any part of the supply undertaking's systems or by the exercise by
any such authority of its power to withhold or restrict or ration supply not
necessitated solely by damage to the Supply Undertaking's generating or
supply equipment by an insured peril.
Provided further that the Company shall not be liable for any loss unless the
duration of each such failure exceeds 24 hours.
Subject otherwise to the terms, extensions, conditions and limitations of this

Policy".
In any action, suit or other proceedings where the company alleges

that by reason of the provisions of this condition any loss or damage is not
covered by this insurance, the burden of proving that this loss or damage is
covered shall be upon the Insured.
4. Forest Fire

" In consideration of the payment of additional premium the insurance under

item …......... of the policy shall extend to include loss of or damage to the
property insured directly caused by burning, whether accidental or
otherwise, of forest, bush and jungles and the clearing of lands by Fire."
Note 1 : Where loss experience for previous 5 years excluding the expiring
policy period is less than 30%, a 50% discount on the rate may be
considered.
Note 2 : Where loss experience is above 60%, the rate shall be adjusted
in such a way that the loss experience for policy period worked out as given
in Note 1 above be adjusted to 60% subject to a maximum rate of Rs.15%o .
5. Impact Damage due to Insured's own Rail/Road Vehicles, Fork lifts,

Cranes, Stackers and the like and articles dropped therefrom.

"In consideration of an additional premium of Rs._____________, it is hereby
98
ANNEXURE ‘A’
agreed and declared that the policy is extended to cover loss and/or
damage caused due to impact by direct contact to Insured's property caused
by Insured's own Rail/Road Vehicles, Fork lifts, cranes, stackers and the like
and articles dropped therefrom."
6. Spontaneous Combustion

"In consideration of the payment by the Insured to the Company of additional

premium of Rs. ____________ the Company agrees notwithstanding what
is stated in the printed exclusions of this policy to the contrary that the
insurance by (items …....) of this policy shall extend to include loss or
damage by fire only of or to the property insured caused by its own
fermentation, natural heating or spontaneous combustion."
N.B.:The expression 'by fire only' in the endorsement above must not be
omitted under any circumstances.
7. Omission to Insure additions, alterations or extensions

endorsement wordings
The Insurance by this Policy extends to cover Buildings and/or Machinery,

Plant and other Contents as defined in Columns......... hereof which the
insured may erect or acquire or for which they may become responsible :-
a) at the within described premises
b) for use as factories
i) The liability under this Extension shall not exceed in respect of (a)
above, 5% of the Sum Insured by each item, in respect of (b) above,
5% of the Sum Insured by item No..........
ii) The Insured shall notify the Insurer of each additional insurance as
soon as it shall come to their knowledge and shall pay the
appropriate additional premium thereon from the date of inception.
iii) Following the advice of any additional insurance as aforesaid, cover

by this extension shall be fully reinstated.
1) No liability shall attach to the insurers in respect of any Building,
99
ANNEXURE ‘A’
Machinery, Plant or other Contents while such property is

otherwise insured. All new additions to Buildings and/or
Machinery and Plant not specifically insured/included during the
currency of the policy should be declared at the end of the year
and suitable additional premium paid on pro rata basis from the
date of completion of the construction /erection of additions may
be suitably adjusted.
If the insured fails to declare the values of such additions within

30 days after the expiry of the policy, there shall be no refund of
the advance premium collected.
2) Other Contents’ in the above clause shall mean ‘Furniture and

Fittings’ and does not include ‘Stocks’.
3) This clause should be incorporated at the time of issuing the

policy.
8. Earth quake (Fire and Shock)
Extension cover shall be granted only if the entire property in one Complex
/ Compound/ location covered under the policy is extended to cover this risk
and sum insured for this extension is identical to the sum insured against the
risk covered under main policy except for the value of the plinth and foundtion
of the building(s).
If option to delete STFI peril is exercised
“In consideration of the payment by the Insured to the Company of the sum
of_________ additional premium, it is hereby agreed and declared that
notwithstanding anything stated in the printed exclusions of this policy to the
contrary, this Insurance is extended to cover loss or damage (including loss
or damage by fire) to any of the property Insured by this policy occasioned by
ear thquake including Landslide/Rockslide resulting there from but
exclud ing flood or overflow of the sea, lakes, reservoirs and rivers caused
by earthquake.
Provided always that all the conditions of this policy shall apply (except in so
far as they may be hereby expressly varied) and that any reference therein to
loss or damage by fire shall be deemed to apply also to loss or damage
directly caused by any of the perils which this insurance extends to include
by virtue of this endorsement.”
If option to delete STFI peril is not excised
100
ANNEXURE ‘A’
“In consideration of the payment by the Insured to the Company of the sum of
__________ additional premium, it is hereby agreed and declared that not
withstanding anything stated in the printed exclusions of this policy to the
contrary, this Insurance is extended to cover loss or damage (including loss
or damage by fire) to any of the property Insured by this policy occasioned by
or through or in consequence of earthquake including flood or overflow of
the sea, lakes, reservoirs and rivers and/or Landslide/Rockslide resulting
there from.
Provided always that all the conditions of this policy shall apply (except in so
far as they may be hereby expressly varied) and that any reference therein to
loss or damage by fire shall be deemed to apply also to loss or damage
directly caused by any of the perils which this insurance extends to include
by virtue of this endorsement.”
Special conditions
1) Excess clause 5% of each and every claim subject to a minimum of

Rs. 10,000/-
2) Extension cover shall be granted only if the entire property in one

complex/compound/location covered under the policy is extended to
cover this risk and the Sum Insured for this extension is identical to
the sum Insured against the risk covered under main policy except for
the value of the plinth and foundations of the building(s)..
3) Onus of proof In the event of the Insured making any claim for loss or
damage under this policy he must (if so required by the Company)
prove that the loss or damage was occasioned by or through or in
consequence of earthquake.
9. SPOILAGE MATERIAL DAMAGE COVER
Policy may be extended to include spoilage risk subject to the following

conditions:-
The cover shall extend to material damage, i.e.
(i) Loss of stock in process; and
(ii) Damage to machinery, containers and equipment (including cost of

removal of debris and cleaning) and shall be provided by a separate
item of the SFSP Policy subject to the Conditions that the perils causing
the spoilage should be the same as those covered under the Policy.
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ANNEXURE ‘A’
The following endorsement wording shall be used.
"In consideration of the payment of an additional premium of Rs. _______

it is hereby agreed and declared that, notwithstanding anything
contained to the contrary, in the within written Policy, the insurance under
Item No....... of this policy shall extend to cover loss or damage by
Spoilage resulting from the retardation or interruption or cessation of any
process or operation caused by any of the perils covered under this
Policy, provided that liability for destruction of or damage to the property
insured described in the schedule to this policy, or any part of such
property, is first admitted by the Company.
PROVIDED ALWAYS THAT all the conditions (except in so far as they

may be hereby expressly varied) shall apply as if they had been
incorporated herein and that any reference therein to the loss or damage
caused by insured perils shall be deemed to apply also to loss or
damage caused by Spoilage which peril this insurance extends to
include by virtue of this Endorsement."
SPECIAL CONDITIONS
For the purpose of this Endorsement but no otherwise, the following

special conditions shall apply :
Average : If the property hereby insured against spoilage shall, at the

time of occurrence of any loss or damage, be collectively of greater value
than the sum insured on machinery, containers, equipment and stocks in
the specified blocks, then the Insured shall be considered as being his
own insurer for the difference and shall bear rateable proportion of the
loss accordingly. Every item, if more than one, of the Policy shall be
separately subject to this condition.
PROVIDED THAT it is hereby further expressly agreed and declared that

the liability of the Company shall in no case under this endorsement and
the Policy exceed the sum insured by item Nos.____________ of this
Policy.
Sum to be Insured:The cover must be for all stocks and machinery,

container and equipment in specified blocks, specified sums being
declared for each block and must be made subject to 'Average'.
10. LEAKAGE AND CONTAMINATION COVER
SCOPE
Policy may be extended to include the risks of (a) accidental leakage and
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ANNEXURE ‘A’
contamination or (b) accidental leakage.
The extension will apply to oils and chemicals only. It will not apply to
anyother commodity.
ENDORSEMENTS
It shall be obligatory to use one of the following endorsement wordings:
(A) WHERE LEAKAGE AND CONTAMINATION COVER IS GRANTED :
"In consideration of the payment of an additional premium of Rs.............

it is hereby agreed and declared that the Insurance under this policy
shall, subject to terms, conditions and exclusions of this policy and also
subject to terms, conditions and exclusions hereinafter contained, exten
to include the physical loss of oil/chemical by leakage from its container
by accidental means and all accidental contaminations by contact with
foreign matter."
PROVIDED always that this policy does not cover:
a) Loss by Contamination through Improper Handling or Controls by

Insured's own Employees;
b) Loss resulting from loss of use, loss of earnings, delay or loss of

markets or other consequential or indirect loss or damage of any
kind or description whatsoever;
c) Loss resulting from any kind of infidelity or dishonesty on the part of

the Insured or any of their employees, inventory shor tage,
mysterious disappearance or unexplained loss;
d) Loss by burglary or theft or any attempt thereat;
e) Loss resulting from processing or faulty workmanship;
f) Loss resulting from shrinkage, evaporation, loss of weight unless

caused by a peril not otherwise excluded;
g) Any legal and/or contractual liability arising from any cause

whatsoever; and
h) Consequential Loss of any nature.
(B) WHERE LEAKAGE COVER ALONE IS GRANTED :
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ANNEXURE ‘A’
"In consideration of the payment of an additional premium of Rs............ it

is hereby agreed and declared that the Insurance under this policy
shall, subject to terms, conditions and exclusions of this Policy and also
subject to terms, conditions and exclusions hereinafter contained,
extend to include the physical loss of oil/chemical by leakage from its
container by accidental means.
PROVIDED always that this policy does not cover :
a) loss resulting from loss of use, loss of earnings, delay or loss of

markets or other consequential or indirect loss or damage of any kind
or description whatsoever;
b) loss resulting from any kind of infidelity or dishonesty on the part of

the Insured or any of their employees, inventor y shortage,
mysterious disappearance or unexplained loss;
c) loss by burglary or theft or any attempt thereat;
d) loss resulting from processing or faulty workmanship;
e) loss resulting from shrinkage, evaporation, loss of weight unless

caused by a peril not otherwise excluded;
f) any legal and/or contractual liability arising from any cause

whatsoever; and
g) Consequential Loss of any nature.
SPECIAL CONDITIONS : (Applicable to A and B)
i) The cover under this endorsement shall attach only on or after the
receipt of the insured subject matter in land tanks as described in the
policy and subject to lodgment with the company by Insured of a
certificate obtained by them at their own expense from a competent
approved and independent agency/surveyor as to the purity and
quality of the subject matter herein insured.
ii) Before the commencement of pumping and/or decanting

operations, the Insured shall arrange at their own expense
sampling and quality / purity certification by competent, approved
and independent agency / surveyor for such distinct lot, batch or
tank load ex-ocean vessel of insured subject matter and shall pump
/decant only such material as is pure and without contaminants.
iii) The insured shall at their own expense arrange inspection and
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ANNEXURE ‘A’
certification from competent approved and independent agency/

surveyor as to the cleanliness and fitness of the pipe lines, pumping
equipment and the receiving land tanks to carry and/or receive the
insured subject matter, prior to the commencement of pumping,
decanting, receiving and/or storage operations. Such certification
as mentioned above should, inter alia, confirm that the pumping,
carrying and storage equipment facilities and tanks are free from
impurities, contaminants and/or residue or left-overs from previous
use of equipment, facilities or storage tanks. As concerning the
receiving land tanks an initial certificate of fitness to receive and
store the insured material shall be deemed to satisfy the above
condition in so far as such tanks are concerned. However, a fresh
certification as mentioned above would be required in the event of
the said tanks being empty and fresh stocks are subsequently
pumped/decanted in during the currency of this insurance.
v) In case of loss to property insured hereunder, the basis of adjustment

shall be the market value at the time and place of loss.
vi) It is understood and agreed that all loss or damage to proper ty

occurring during any one period of seventy-two consecutive hours
during the currency of this policy directly caused by earthquake shock
shall be deemed to have been caused by single earthquake and
therefore to constitute one loss for the purpose of this policy, the Insured
shall select a time from which any such period shall commence but no
two such selected periods shall overlap.
vii) All salvage recoveries and payments recovered or received subsequent

to a loss settlement under this policy shall be applied as if recovered or
received prior to the said settlement and all necessary adjustment shall
be made by the parties hereto.
viii)If any breach of a clause or condition in this contract or policy of

insurance shall occur prior to a loss under this Policy, such breach shall
not void the policy nor avail the company to avoid the liability unless
such breach shall exist at the time of such a loss under this contract or
policy, it being understood that such breach of a clause or condition is
applicable only to the specific property to which the condition or clause
has reference and in respect of which such breach occurred.
ix) Each claim for loss or damage shall be adjusted separately and each
claim is subject to an excess of 1% on each tank with a minimum of
Rs. 60,000/- each loss.
x) If the property hereby insured shall at the time of the operation of a peril
105
ANNEXURE ‘A’
insured hereunder, be collectively of greater value than the sum

insured thereof, then the insured shall be considered as being his own
insurer for the difference and shall bear a rateable proportion of the loss
accordingly. Every item, if more than one, of the policy shall be
separately subject to this condition
NOTE : SPECIAL CONDITIONS (i), (ii) AND (iii) ARE NOT APPLICABLE
WHERE LEAKAGE COVER ALONE IS GRANTED.
11. TEMPORARY REMOVAL OF STOCKS CLAUSE
It is agreed that the stock insured hereby not exceeding 10% of the total
sum insured of such stock is covered while temporarily removed to any
other premises for purposes of fabrication or processing or finishing or
other similar purposes. This extension does not apply to stock if and so
far as it is otherwise insured.The pro-rata condition of average should be
applied to the limit of stocks temporarily removed as well as to the total
sum insured of such stock under the policy.
12. LOSS OF RENT CLAUSE
POLICY may be extended to cover the above subject to following :
Where loss of rent caused by Insured Perils is covered, the following
Rent Clause should be inserted in the Policy:-

" The insurance on rent applies only if (any of) the said building(s) or any
part thereof is unfit for occupation in consequence of its destruction or
damage by the perils insured against and then the amount payable shall
not exceed such portion of the sum insured on Rent as the period
necessary for reinstatement bears to the term of the Rent Insured".
13. INSURANCE OF ADDITIONAL EXPENSES OF RENT FOR AN

ALTERNATIVE ACCOMMODATION
Policy may be extended to cover the above subject to following :
Additional expenses of rent for an alternative accommodation in respect

of non-manufacturing risks may be covered on the following basis :
a) The cover may be granted for non-manufacturing premises only.
b) The cover may be granted under the Policy and not under
Consequential Loss (Fire) Policy.
c) The period of Indemnity may be limited to the period during which the
original premises remain untenantable as a result of occurrence of
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ANNEXURE ‘A’
perils insured against. Maximum indemnity period not to exceed 3

(three) years.
d) The additional expense recoverable under the policy may be
additional rent actually paid i.e. the difference between the new and
the original rent only.
e) Certificate from the Local Municipal Authority or an Architect to the

effect that premises in question are untenantable will be accepted as
adequate proof of the fact that the premises, in fact, have become
untenantable.
f) Insurance should be granted against Fire, Riot, Strike, Malicious and

Terrorist Damage and Ear thquake (Fire & Shock) and other
Extraneous Perils. Cover against Riot, Strike, Malicious and Terrorist
Damage should be granted only if it involves actual physical damage
to the building. The cover does not intend to pay, if for instance, the
insured's entry is barred by strikers, demonstrators and similar
occurrences.
g) The cover may be limited to buildings other than those of "Kutcha"

construction.
h) The area for alternative accommodation may be equivalent to the

area presently occupied. However, no restriction will apply in respect
of locality for the alternative accommodation, so long as the
alternative accommodation is taken in the same city of town.
i) Cover may be permitted to the tenant as also to the Owner

-Occupant. Further, in respect of the Owner-Occupant, the
alternative accommodation may be limited to the area
presently under his occupation.
j) For the Owner-Occupant, since he will not be paying any rent based
on the area occupied by him (in comparison with the actual rent
being paid by the tenant in the same building or similar buildings in
the same locality) the standard rent based on the rateable values
fixed by Municipal/Revenue Authorities for tax purposes may be
treated as the original rent for the purpose of this insurance.
k) It will be compulsory for
i. the Owner-Occupant to insure both building and contents.

ii. the tenant to insure the contents of the premises for which he
is seeking this extension
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ANNEXURE ‘A’
Endorsement wording for insurance of rent for alternative

accommodation Tenant or Owner-Occupant
“It is hereby declared that in the event of the premises described in the policy
and occupied by the insured, hereinafter referred to as 'PREMISES' being
destroyed or damaged by any Insured Peril as to become unfit for
occupation and the insured in consequence taking up alternative
accommodation, the Company shall, subject to special conditions set out
herein, indemnify the insured against the additional rent (as explained herein)
which the insured is called upon to bear for the period beginning from
the date of operation of any of the Insured Perils until the 'PREMISES' is
rendered fit for occupation such period not exceeding such
reasonable time as is required to restore the premises with due diligence to
a condition fit for occupation or the maximum indemnity period of ......... months
whichever is earlier.
Provided that the liability of the Company shall not exceed Rs. .............. the
sum insured hereby.Provided further that if the sum produced by applying
the monthly additional rent, borne by the insured for the alternative
accommodation to the maximum indemnity period is more than the Sum
Insured hereby, the liability of the Company shall be proportionately
reduced.
SPECIAL CONDITIONS :
1. This insurance shall apply subject to the condition that the PREMISES
occupied by the insured, whether as owner or tenant, forms part of a
building not being "Kutcha" Construction.
2. If the area of alternative accommodation taken by the insured is more

than the area of the PREMISES occupied by the insured, the additional
rent borne by the insured for the purpose of this insurance shall be deemed
to be that proportion of the additional rent actually borne by the insured
as the area of the PREMISES which was in the insured's occupation
bears to the area of the alternative accommodation taken by the insured.
The insured shall be at liberty to take alternative accommodation in any
locality so long as it is within the Municipal limit of the city or town in which
the PREMISES is situated.
EXPLANATION
Additional Rent : If the insured is the Owner-Occupant, the additional rent

borne by him is arrived at after deducting the standard rent of the premises
from the actual rent paid for the alternative accommodation. The standard
rent shall be based on the ratable values fixed by the Municipal/Revenue
authorities for tax purposes.
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ANNEXURE ‘A’
If the insured is a tenant only and for safeguarding his legal tenancy rights
is obliged to pay rent for the premises even during the period when it is not
fit for occupation, the additional rent borne by him is the actual rent for the
alternative accommodation.If the insured is a tenant and is not obliged to
pay rent for the premises during the period when it is not fit for occupation,
the additional rent borne by him is the actual rent paid for alternative
accommodation taken less the rent which he was paying for the premises
immediately prior to the same being damaged or destroyed by Insured
Perils and rendered unfit for occupation
14. Start up Expenses
Policy may be extended subject to the following endorsement wordings:
"It is hereby agreed and declared that this policy extends to cover start-up
costs necessarily and reasonably incurred by the insured consequent upon
a loss or damage covered by this policy."
CLAUSES
The following clauses shall be attached to the policy wherever they are
required
109
ANNEXURE ‘A’
A AGREED BANK CLAUSE
All policies in which a Bank/Financial Institution has interest shall be issued

in the name of Bank/Financial Institution and owner or mortgagor and shall
contain a suitable clause to protect their interest. A specimen copy of the
Clause is given hereunder.
"`It is hereby declared and agreed:-
i. That upon any monies becoming payable under this policy the same
shall be paid by the Company to the Bank and such part of any monies so
paid as may relate to the interests of other parties insured hereunder
shall be received by the Bank as Agents for such other parties.
ii. That the receipts of the Bank shall be complete discharge of the
Company therefor and shall be binding on all the parties insured
hereunder.
N.B: The Bank shall mean the first named Financial Institution/ Bank
named in the policy.
iii. That if and whenever any notice shall be required to be given or other
communication shall be required to be made by the Company to the
insured or any of them in any manner arising under or in connection with
this policy such notice or other communication shall be deemed to have
been sufficiently given or made if given or made to the Bank.
iv. That any adjustment, settlement, compromise or reference to arbitration

in connection with any dispute between the Company and the insured or
any of them arising under or in connection with this policy if made by the
Bank shall be valid and binding on all parties insured hereunder but not
so as to impair rights of the Bank to recover the full amount of any claim
it may have on other parties insured hereunder.
v. That this insurance so far only as it relates to the interest of the Bank
therein shall not cease to attach to any of the insured property by reason
of operation of condition 3 of the Policy except where a breach of the
condition has been committed by the Bank or its duly authorised agents
or servants and this insurance shall not be invalidated by any act or
omission on the part of any other party insured hereunder whereby the
risk is increased or by anything being done to upon or any building
hereby insured or any building in which the goods insured under the
policy are stored without the knowledge of the Bank provided always that
the Bank shall notify the Company of any change of ownership or
110
ANNEXURE ‘A’
alterations or increase of hazards not permitted by this insurance as

soon as the same shall come to its knowledge and shall on demand pay
to the Company necessary additional premium from the time when such
increase of risks first took place and
vi. It is further agreed that whenever the Company shall pay the Bank any
sum in respect of loss or damage under this policy and shall claim that as
to the Mortgagor or owner no liability therefore existed, the Company
shall become legally subrogated to all the rights of the Bank to the extent
of such payments but not so as to impair the right of the Bank to recover
the full amount of any claim it may have on such Mortgagor or Owner or
any other party or parties insured hereunder or from any securities or
funds available.
N.B: In cases where the name of any Central Government or State Government
owned and / or sponsored Industrial Financing or Rehabilitation Financing
Corporations and /or Unit Trust of India or General Insurance Corporation of
India and/or its subsidiaries or LIC of India/ any Financial Institution is
included in the title of the Fire Policy as mortgagees, the above Agreed Bank
Clause may be incorporated in the Policy substituting the name of such
institution in place of the word 'Bank' in the said clause.
B) CONTRACT PRICE INSURANCE CLAUSE
In the case of insurance of imported goods only (and not for goods of local
manufacture) which are sold under a contract which is cancelled either wholly
or to the extent of loss or damage, it is permissible to issue a policy on the
basis of Contract Price and the following clause shall be inserted in the
Policy.
"It is hereby agreed and declared that in respect only of goods sold but not
delivered for which the insured is responsible and with regard to which
under the conditions of sale, the sale contract is by reason of the perils
covered under the Policy, cancelled either wholly or to the extent of the loss
or damage, the liability of the company shall be based on the contract price
and for the purpose of average the value of all goods to which the clause
would in the event of loss or damage be applicable shall be ascertained on
the same basis."
C) DESIGNATION OF PROPERTY CLAUSE:
For the purpose of determining, where necessary, the item under which any
property is insured, the insurers agree to accept the designation under which
the property has been entered in the insured's books.
111
ANNEXURE ‘A’
D) REINSTATEMENT VALUE POLICIES
Reinstatement value insurance may be granted on Buildings, Machinery

Furniture, Fixture and Fittings only subject to the incorporation of the
following memorandum in the policy:
"It is hereby declared and agreed that in the event of the property insured
under (Item Nos......of .........) within the policy being destroyed or damaged,
the basis upon which the amount payable under (each of the said items of)
the policy is to be calculated shall be cost of replacing or reinstating on the
same site or any other site with property of the same kind or type but not
superior to or more extensive than the insured property when new as on
date of the loss, subject to the following Special Provisions and subject also
to the terms and conditions of the policy except in so far as the same may be
varied hereby."
Special Provisions
1. The work of replacement or reinstatement (which may be carried out

upon another site and in any manner suitable to the requirements of the
insured subject to the liability of the Company not being thereby increased)
must be commenced and carried out with reasonable dispatch and in
any case must be completed within 12 months after the destruction or
damage or within such further time as the Company may in writing allow,
otherwise no payment beyond the amount which would have been
payable under the policy if this memorandum had not been incorporated
therein shall be made.
2. Until expenditure has been incurred by the Insured in replacing or

reinstating the property destroyed or damaged the Company shall not be
liable for any payment in excess of the amount which would have been
payable under the policy if this memorandum had not been incorporated
therein.
3. If at the time of replacement or reinstatement the sum representing the

cost which would have been incurred in replacement or reinstatement if
the whole of the property covered had been destroyed, exceeds the Sum
Insured thereon or at the commencement of any destruction or damage
to such property by any of the perils insured against by the policy, then
the insured shall be considered as being his own insurer for the excess
and shall bear a rateable proportion of the loss accordingly. Each item of
the policy (if more than one) to which this memorandum applies shall be
separately subject to the foregoing provision.
4. This Memorandum shall be without force or effect if
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ANNEXURE ‘A’
a) the Insured fails to intimate to the Company within 6 months from the
date of destruction or damage or such further time as the Company
may in writing allow his intention to replace or reinstate the property
destroyed or damaged.
(b) the Insured is unable or unwilling to replace or reinstate the property

destroyed or damaged on the same or another site.
E) LOCAL AUTHORITIES CLAUSE
Reinstatement Value Policy may be extended to cover additional cost of

reinstatement solely by reason of the necessity to comply with the
regulations of local authority by incorporating the following clause in the
policy.
"The insurance by this policy extends to include such additional cost of

reinstatement of the destroyed or damaged property hereby insured as may
be incurred solely by reason of the necessity to comply with the Building or
other Regulations under or framed in pursuance of any act of Parliament or
with Bye-laws of any Municipal or Local authority provided that
1) The amount recoverable under this extension shall not include :
a) the cost incurred in complying with any of the aforesaid Regulations

or Bye-laws,
i) in respect of destruction or damage occurring prior to the granting of

this extension,
ii) in respect of destruction or damage not insured by the policy,
iii) under which notice has been served upon the insured prior to the
happening of the destruction of damage,
iv) in respect of undamaged property or undamaged portions of

property other than foundations (unless foundations are specifically
excluded from the insurance by this policy) of that portion of the
property destroyed or damaged,
b) the additional cost that would have been required to make good the
property damaged or destroyed to a condition equal to its condition
when new had the necessity to comply with any of the
aforesaid Regulations of Bye-laws not arisen,
c) the amount of any rate, tax, duty, development or other charge or

assessment arising out of capital appreciation which may be payable
113
ANNEXURE ‘A’
in respect of the proper ty or by the owner thereof by reason of

compliance with any of the aforesaid Regulations or Bye-laws.
2) The work of reinstatement must be commenced and carried out with

reasonable dispatch and in any case must be completed within twelve
months after the destruction or damage or within such further time as the
Insurers may (during the said twelve months) in writing allow and may be
carried out wholly or partially upon another site (if the aforesaid
Regulations or Bye-laws so necessitate) subject to the liability of the
Insurer under this extension not being thereby increased.
3) If the liability of the insurer under (any item of) the policy apart from this
extension shall be reduced by the application of any of the terms and
conditions of the policy then the liability of the Insurers under this
extension (in respect of any such item) shall be reduced in like
proportion.
4) The total amount recoverable under any item of the policy shall not
exceed the sum insured thereby.
5) All the conditions of the policy except in so far as they may be hereby
expressly varied shall apply as if they had been incorporated herein."
6) No additional premium shall be charged for inclusion of this clause in

this policy.
F) ESCALATION CLAUSE
The following Clause shall be used :
"In consideration of the payment of an additional premium amounting to

50% of the premium produced by applying the specified percentage to
the first or the annual premium as appropriate on the under noted items(s)
the Sum(s) Insured thereby shall, during the period of insurance, be
increased each day by an amount representing 1/365th of the specified
percentage increase per annum.
Item Number Specified percentage increase per annum

---------------- ------------------------------------------------
Unless specifically agreed to the contrary the provisions of this clause shall
only apply to the sums insured in force at the commencement of each period
of insurance.
At each renewal date the insured shall notify the Insurers :-
114
ANNEXURE ‘A’
(i) the sums to be insured under each item above, but in the absence of
such instructions the Sums Insured by the above items shall be those
stated on the policy (as amended by any endorsement effective prior to
the aforesaid renewal date) to which shall be added the increases which
have accrued under this Clause during the period of insurance upto that
renewal date, and
(ii) the specified percentage increase(s) required for the forthcoming period
of insurance, but in the absence of instructions to the contrary prior to
renewal date the existing percentage increase shall apply for the period
of insurance from renewal.
All the conditions of the policy in so far as they may be hereby expressly
varied shall apply as if they had been incorporated herein."
G) ARCHITECTS, SURVEYORS AND CONSULTING ENGINEER'S FEES (upto

3% of the claim amount)
The following Clause shall be used :"It is hereby declared and understood
that the expenses incurred towards Architects, Surveyors and Consulting
Engineers fees for plans, specification tenders, quantities and services in
connection with the superintendence of the reinstatement for the Building,
Machinery, Accessories and equipment insured under this policy is covered
upto 3% of the adjusted loss, but it is understood that this does not include
any costs in connection with the preparation of the Insured's claim or
estimate of loss in the event of damage by insured perils".
H) REMOVAL OF DEBRIS CLAUSE (upto 1% of the claim amount)
The following Clause shall be used :"It is hereby declared and agreed that
the expenses incurred upto 1% of the claim amount is included in the sum
insured on:
(a) Removal of debris from the premises of the Insured;
(b) dismantling or demolishing;
(c) shoring up or propping.
"Note : (b) & (c) above should be deleted when neither Building nor
Machinery are covered.
I) FLOATER CLAUSE
The following clause shall be attached for floater policy(ies) :
115
ANNEXURE ‘A’
"In consideration of Floater Extra charged over and above the policy rate the
S.I. in aggregate under the policy is available for any one, more, or all
locations as specified in respect of movable property. At all times during the
currency of this policy the insured should have a good internal audit and
accounting procedure under which the total amount at risk and the locations
can be established at any particular time if required.
The changes in the address of locations specifically declared at inception
should be communicated"
J) DECLARATION CLAUSE
The following clause shall be attached to Declaration Policy(ies).
1) In consideration of the premium by this policy being provisional in that it

is subject to adjustment on expiry of each period of insurance.
"The Insured agrees to declare to the ....................... Company in writing the

value of his stocks (other than retail) less any amount insured by Policies
other than declaration policies, in each separate building or non-
communicating compartment or in the open on the following basis namely
1] average of the values at risk on each day of the month or 2] the highest
value at risk during the month and to make such declaration(s) latest by the
last day of the succeeding month. Such declaration(s) shall be signed by
the Insured or by a responsible person authorised to sign on his behalf.
If other policies on declaration basis cover the stocks hereby insured, the
declarations shall be made so as to apportion to each policy a share of the
value of the stocks insured under such declaration policies, PRO RATA to
the respective amounts named in the policies.
In the event of a declaration not being made latest by the last day of the
succeeding month , then the insured shall be deemed to have declared the
Sum Insured hereby as the value at risk.
On the expiry of each period of insurance the premium shall be calculated

at the rate of ................... (insert the Tariff rate) on the average Sum Insured
namely, the total of the values declared or deemed to have been declared
divided by the number of declarations deemed to have been made.
If the resultant premium is less than the provisional premium, the difference
shall be repaid to the Insured but such repayment shall not exceed 50% of
the provisional premium.Further it is hereby agreed and understood that no
reduction in sum insured shall be allowed during the currency of the policy
2) The basis of value for declarations shall be the market value and any loss
116
ANNEXURE ‘A’
hereunder shall be settled on the basis of the Market Value immediately

anterior to the loss.
3) If at the time of any loss, there be any subsisting insurance or insurances

on other than a declaration basis, whether effected by the Insured or by
any other person or persons, covering the stocks hereby insured, this
policy shall apply only to the excess of the value of such stocks at the time
of the loss over the Sum Insured by such other insurance or insurances,
and this Company shall not be liable to pay or contribute more than that
proportion of such loss which such excess (or, if there be other
declaration insurances covering the same stocks, a rateable proportion
of such excess) but not exceeding the Sum Insured hereby, bears to the
total value of the stocks.
4) If after the occurrence of a loss it is found that the amount of the last
recoverable by the Insured shall be reduced in such proportion as the
amount of the said last declaration bears to the amount that ought to
have been declared.
5) Notwithstanding the occurrence of loss it is understood that the Sum

Insured will be maintained at all times during the currency of the policy
and the Insured therefore undertakes to pay extra premium on the amount
of any loss pro rata from the date of such loss to the expiry of the period
of insurance, the premium being calculated at the rate applicable to the
stocks destroyed and such extra premium shall not be take into account
in, and shall be distinct from, the final adjustment of premium.
6) In event of this policy being cancelled by the Insured during its currency
(whether stocks exist or not) the premium to be retained by the Company
shall be the appropriate short period premium calculated on the average
amount insured upto the date of cancellment, or 50% of the provisional
premium whichever is greater. Notwithstanding the above, if the policy is
cancelled by the insured after a loss has occurred, the premium to be
retained by the company shall be the PRO RATA proportion of the
premium calculated on the average amount insured upto the date of
cancellation plus the PRO RATA proportion of the premium from the date
of loss to the expiry of the period of insurance on the amount of loss paid,
or 50% of the provisional premium whichever is greater.
7) The maximum liability of the Company shall not exceed the Sum Insured
hereby and premium shall not be receivable on value in excess thereof.
The Sum Insured may, however, be increased by prior agreement with
the Company in which event the new Sum Insured and the date from
which it is effective will be recorded on the policy by endorsement. In the
117
ANNEXURE ‘A’
event of an increase in the Sum Insured being agreed to, the Company
shall charge on such increased sum an additional provisional premium
on a basis proportionate to the unexpired period of the policy and upon
expiry of each period of insurance the total provisional premium so paid
shall be adjusted as provided for in Clause 1 above. If during the
currency of the policy, the rate for the class of risk to which the insurance
applies is revised, and an increase in the Sum Insured under a
Declaration Policy is agreed to, the Company shall charge on such
increased sum an additional provisional premium on a basis
proportionate to the unexpired period of policy, at the rate at which the
insurance was originally effected and upon expiry of each period of
insurance the total provisional premium so paid shall be adjusted as
provided for in Clause 1 above.
8) If the stocks hereby insured shall at the time of loss be collectively of

greater value than the Sum Insured thereon, then the Insured shall be
considered as being his own insurer for the difference and shall bear a
rateable proportion of the loss accordingly. Every item, if more than one,
on stock shall be separately subject to this condition.
9) It is warranted that every other policy on a declaration basis covering the

stocks insured hereby shall be identical in wording with this policy.
10) This insurance is subject in all respects to the printed conditions of the
policy except in so far as they may be varied by the above conditions.
K) VOLUNTARY DEDUCTIBLE CLAUSE
The following clause shall be attached to the policy(ies) in case the insured
accepts the deductible and the discount therefor:"
It is hereby declared and agreed that the insured having opted a voluntary
deductible of Rs.--------- out of net amount of each and every admissible
claim under the fire policy(ies) covering the said premises, the company has
allowed a discount of ----% on the final premium payable for the policies and
Add on Covers.
It is further agreed that the above voluntary deductible opted shall be in

addition to compulsory exclusion stipulated under "General exclusions"
attached to the policy(ies) and/or for add-on covers."
L) Floater Declaration Clause
“In consideration of Floater Extra charged over and above the policy rate
the S.I. in aggregate under the policy is available for any one, more, or all
locations as specified in respect of movable property.
118
ANNEXURE ‘A’
At all times during the currency of this policy the insured should have a
good internal audit and accounting procedure under which the total amount
at risk and the locations can be established at any particular time if re-
quired.
The changes in the address of locations specifically declared at inception

should be communicated” Also :
1) In consideration of the premium by this policy being provisional in

that it is subject to adjustment on expiry of each period of insurance.
“The Insured agrees to declare to ______________________Gen-
eral Insurance Company Limited in writing the value of his stocks
(other than retail) less any amount insured by Policies other than dec-
laration policies, in each separate building or non-communicating
compartment or in the open on the following basis namely 1] average
of the values at risk on each day of the month or 2] the highest value
at risk during the month and to make such declaration(s) latest by the
last day of the succeeding month. Such declaration(s) shall be signed
by the Insured or by a responsible person authorized to sign on his
behalf.
If other policies on declaration basis cover the stocks hereby insured,

the declarations shall be made so as to apportion to each policy a
share of the value of the stocks insured under such declaration poli-
cies, PRO RATA to the respective amounts named in the policies.
In the event of a declaration not being made latest by the last day of
the succeeding month then the insured shall be deemed to have de-
clared the Sun Insured hereby as the value at risk.
On the expiry of each period of insurance the premium shall be cal-

culated at the rate of Rs. _____ (provisional) per mille on the average
Sum Insured namely, the total of the values declared or deemed to
have been declared divided by the number of declarations deemed to
have been made.
If the resultant premium is less than the provisional premium, the

difference shall be repaid to the Insured but such repayment shall not
exceed 20% of the provisional premium.
Further it is hereby agreed and understood that no reduction in sum

insured shall be allowed during the currency of the policy.
2) The basis of value for declarations shall be the market value and any
119
ANNEXURE ‘A’
loss hereunder shall be settled on the basis of the Market Value

immediately anterior to the loss.
3) If at the time of any loss, there be any subsisting insurance or

insurances on other than a declaration basis, whether effected by
the insured or by any other person or persons, covering the stocks
hereby insured, this policy shall apply only to the excess of the value
of such stocks at the time of the loss over the Sum Insured by such
other insurance or insurances, and this Company shall not be liable
to pay or contribute more than that proportion of such loss which
such excess (or, if there by other declaration insurances covering
the same stocks, a rateable proportion of such excess) but not
exceeding the Sum Insured here, bears to the total value of the stocks.
4) If after the occurrence of a loss it is found that the amount of the last
recoverable by the Insured shall be reduced in such proportion as
the amount of the said last declaration bears to the amount that ought
to have been declared.
5) Notwithstanding the occurrence of loss it is understood that the Sum

Insured will be maintained at all times during the currency of the
policy and the Insured therefore undertakes to pay extra premium on
the amount of any loss pro rata from the date of such loss to the
expiry of the period of insurance, the premium being calculated at
the rate applicable to the stocks destroyed and such extra premium
shall not be take into account in and shall be distinct from, the final
adjustment of premium.
6) In event of the policy being cancelled by the Insured during its

currency (whether stocks exist or not) the premium to be retained by
the company shall be the appropriate short period premium
calculated on the average amount insured up to the date of
cancellment, or 80% of the provisional premium whichever is greater.
Notwithstanding the above, if the policy is cancelled by the insured
after a loss has occurred, the premium to be retained by the
company shall be the PRO RATA proportion of the premium
calculated on the average amount insured upto the date of
cancellation plus the PRO RATA proportion of the premium from the
date of loss to the expiry of the period of insurance on the amount of
loss paid, or 80% of the provisional premium whichever is greater.
7) The maximum liability of the company shall not exceed the sum
Insured hereby and premium shall not be receivable on value in
excess thereof. The sum Insured may, however, be increased by
120
ANNEXURE ‘A’
prior agreement with the Company in which event the new sum Insured
and the date from which it is effective will be recorded on the policy
by endorsement. In the event of an increase in the sum
Insured being agreed to, the company shall charge on such
increased sum an additional provisional premium on a basis
proportionate to the unexpired period of the policy and upon expiry
of each period of insurance the total provisional premium so paid
shall be adjusted as provided for in Clause 1 above. If during the
currency of the policy, the rate for the class of risk to which the
insurance applied is revised, and an increase in the Sum Insured
under a Declaration Policy is agreed to, the company shall charge
on such increased sum an additional provisional premium on a ba-
sis proportionate to the unexpired period of policy, at the rate at
which the insurance was originally effected and upon expiry of each
period of insurance the total provisional premium so paid shall be
adjusted as provided for in Clause 1 above.
8) If the stocks hereby insured shall at the time of loss be collectively

of greater value than the Sum Insured thereon, then the Insured
shall be considered as being his own insurer for the difference and
shall bear a ratable proportion of the loss accordingly. Every item, if
more that one, on stock shall be separately subject to this
condition.
9) It is hereby warranted that every other policy on a declaration basis

covering the stocks insured hereby shall be identical in wording with
this policy.
10) This insurance is subject in all respects to the printed conditions of

the policy except in so far as they may be varied by the above
conditions.
121
ANNEXURE ‘B’
ANNEXURE ‘B’
proposal is subject to the rules & regulations of
All India Fire Tariff
(The property proposed for insurance is not covered until the
proposal is accepted and premium paid)
Divisional office address & code

Development Officer's Name &
Code
Agents Name & Code
DETAILS ABOUT PROPOSER
1) Name of Proposer
2) Address of Proposer including

their phone, fax No. and e-mail
address
3) Business of Proposer
4) Paid up capital of the firm
5) Policy to be Issued in favour of

(list out all the parties who have
insurable interest) including the
financial institutions.
6) Location of risk to be covered - full

postal address with pincode
7) Period of Insurance From

To
8) Would you like to delete any of

following covers from the basic cover?
a. Flood, Cyclone, group of perils Yes / No
b. Riot, Strike & Malicious damage,

Terrorism Yes / No
122
ANNEXURE ‘B’
9) Would you like to cover Plinth &

Foundation along with your buildings Yes / No
10)Add-On Covers Required
Architects consulting & Engineers

Fees ( in excess of 3% claim amount) Yes / No
Debris Removal
( in excess of 1% claim amount) Yes / No
Deterioration of Stocks in cold storage

premises on account of
a) Accidental power failures due to

damage at power station due to an
insured peril; Yes / No
b) Deterioration 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
Insured's premises due to operation
of insured peril. Yes / No
Forest Fire Yes / No
Impact damage due to insured's

own Rail/Road vehicles etc: Yes / No
Spontaneous Combustion Yes / No
Omission to Insure additions etc. Yes / No
Earthquake(fire and shock) Yes / No
Spoilage material cover Yes / No
Leakage and contamination cover Yes / No
Temporary removal of stocks Yes / No
Loss of rent Yes / No
123
ANNEXURE ‘B’
Additional expenses of rent for an

alternate accommodation Yes / No
Start-up expenses Yes / No
11) Whether you have insured the same property with any other Insurance
Company with the same type of coverage. (Give details)
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
12) Whether Insurance was declined by any other Company or imposed

any Special Conditions (Give details)
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
13) Premium / Claim details for the past 36 months

excluding the expiring policy period Premium Claims
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○ ○
DETAILS ABOUT BUSINESS COVERED AT THE INSURED LOCATION
14) The Insured property is

Residence,Office,Shops,Hotels etc Yes / No
Industrial/Manufacturing risks Yes / No
Storages outside industrial risks Yes / No
Tanks / Gas Holders outside Industrial

Manufacturing risks Yes / No
Utilities located outside Industrial Manufacturing

risks Yes / No
124
ANNEXURE ‘B’
15) If used as Shop please declare whether the goods handled are as per
the following list. If yes, whether the stock value will exceed 5% of
shops value
1.Celluloid goods, 2.Coir Loose, 3.Crackers & Fire Works,

4.Explosives of any kind, 5.Hay/Straw, 6.Hemp, 7.Jute Loose,
8.Matches, 9.Methylated Spirit, 10.Nitro-Cellulose Plastics, 11.Oils
/Ether/Industrial Solvents and other inflammable liquids flashing at
and below 32 Deg.C (Closed Cup test), 12.Paints with inflammable
base having flash point below 32 Deg.C (Closed Cup test) - Other than
in sealed tins or drums, 13.Varnishes having a Flash point below 32
Deg.C (Closed Cup test) - Other than in sealed tins oR
drums,14.Disinfectant liquids and liquid insecticides - Other than in
sealed tins or drums,15.Vegetable fibres of any kind including Rayon
Fibre.
16) If used as warehouse / godown (not located in a manufacturing unit)

please give the list of goods stored
17) If used as an Industrial Manufacturing unit give products

manufactured at the location proposed.(detailed block plan showing
various facilities to be enclosed)
18) If used as an Industrial Manufacturing unit, please state whether the

factory is working or silent ?
19) Fire Protection devices installed
Please Tick the correct answer in the

box below
Portable Extinguishers Yes / No
Small bore hose reels Yes / No
Trailer Pumps/Fire engines Yes / No
a) List out the various blocks and

indicate the type of protection
provided for each block.
Hydrant System Yes / No
Sprinkler System Yes / No
125
ANNEXURE ‘B’
b) Indicate whether Annual Maintenance

contract for the Appliances is in force : Yes / No
Fixed Water Spray System Yes / No
Foam systems Yes / No
Fire alarm systems Yes / No
Gas flooding systems Yes / No
20)The basis proposed for insurance

(Bldg/ machinery/ FFF )
Market Value basis Yes / No
Reinstatement Value Basis Yes / No
Whether escalation clause is required Yes / No
21) a) Construction Details Please state material used
i) Walls ____________
ii) Floor ____________
iii) Roof ____________
b) Height of Building ________ Meters
c) Age of Building Less than 5 years 10-20 years
5-10 years above 20 years
Note: Buildings having walls and/ or roofs of wooden planks/thatched leaves

and/or grass/hay of any kind/bamboo/plastic cloth/asphalt cloth/canvas/
tarpaulin and the like are treated as "Kutcha" consruction.
126
ANNEXURE ‘B’
22)Building wise values (Please include the kutcha buildings also in this list
and give individual values against such buildings)
Descrip- Amount M F&F SSP P r o p - To- AGE HT CON-

tion of in Rs & and ** erty to tal (YRS) (MTS) STRUC-
Block B u i l d - A other be in- TION
ing in- equip- sured
clud- ments sepa-
i n g rately
plinth
Total
** Indicates those stocks which are covered on normal basis and do not fall
under Serial No.23 A,B, C and D below
23)Special Coverage for Stocks only

Please Tick in the box below and give the amount to be insured against
each
A) On Floater Basis
Stocks at various locations (warehouses / godowns and /or open etc.,) can
be covered on floater basis for a single Sum Insured.
Tick Amount Rs.

Floater
Basis
127
ANNEXURE ‘B’
B) On Declaration Basis
Stocks which fluctuate in value can be covered on (monthly) declaration

basis.
Tick Amount Rs.
Declaration Basis
Note:
1. Minimum Sum Insured is Rs.1 Crore, and policy not issued on short
period basis
2. Stocks in process & stocks stored at Railway sidings are not
covered
C) On Floater Declaration Basis
Stocks which fluctuate in value as well as stored in various locations can be

covered on (monthly) floater declaration basis.
Tick Amount Rs.

Floater
Declaration Basis
Note:
1. Minimum Sum Insured is Rs.
2. Crore2.Stocks in process & stocks stored at Railway sidings are not

covered
D) Stocks stored in open
Locations Amount Rs.
1.Stocks in open
(located outside
the factory compound)
128
ANNEXURE ‘B’
24) Total Sum Insured (as per relevant serial numbers shown against each)
Clause/ Risk Rate Ra Sum Pre- Risk Rate

Peril code code te In- mium Code code
code sured
(Plinth & Foundation)
Architects & Engineers

Fees
Debris Removal
Deterioration of Stocks
in cold storage
premises on account of
a) Accidental power
failures due to
damage at power
station due to an
insured peril;
b)Deterioration of
stocks in cold
storage premises
due tochange in
tempera ture arising
out of loss or damage
to the cold storage
machinery(ies) in the
Insured's premises
due to operation of
insured peril.
Forest Fire
Impact damage due to

Insured's own vehicle
Spontaneous
Combustion
129
ANNEXURE ‘B’
Clause/ Risk Rate Ra Sum Pre- Risk Rate

Peril code code te In- mium Code code
code sured
Omission to Insure
additions
alteration
extension
Earthquake
Spoilage material cover
Leakage and
contamination cover
Temporary removal of
stocks
Additional expenses of
rent for an alternate
accommodation
Building wise values
(Stocks Floater Basis)
(Stocks Declaration
Basis)
(Stocks Floater
Declaration)
(Stocks in open - outside

factory compound)
Grand Total
130
ANNEXURE ‘B’
25. Would you like to avail Discount for Voluntary Deductibles: Yes / No
If the answer is Yes , indicate the choice of Deductible amount:

Rs.------
Declaration by Insured
I/ We hereby declare that the statements made by me / us in this Proposal

Form are true to the best of my / our knowledge and belief and I / We hereby
agree that this declaration shall form the basis of the contract between me /
us and the "__________________________________________.
"If any additions or alterations are carried out in the risk proposed after the
submission of this proposal form then the same should be conveyed to the
insurers immediately.
Date Place
Recommendations of Signature of the Proposer

Development
Officer / Agent
Prohibition of Rebates (Section 4) of the Insurance Act
Section 41 of Insurance Act 1938
PROHIBITION OF REBATES -
1. No person shall allow or offer to allow, either directly or indirectly as an

inducement to any person to take out or renew or continue an insurance in
respect of any kind of risk relating to lives or property in India, any rebate of
the whole or part of the commission payable or any rebate of the premium
shown in the policy; nor shall any person taking out or renewing or continuing
a policy accept any rebate, except such rebate as may be allowed in
accordance with the published prospectus or tables of the Insurer.
Any person making default in complying with the provisions of this section
shall be punishable with fine, which may extend to five hundred rupees.
131
ANNEXURE ‘C’
ANNEXURE ‘C’
LIST OF HAZARDOUS GOODS
CATEGORY I
Accoroides Gums
Accumulator Acid
Acenaphthene
Acetate Silk
Acetoacetanilide
Acetylene black
Acid (not otherwise specifically provided)
Acrylamide
Acrylic acid
Acrylic powder
Acrylic sheets
Activated carbon
Activated Manganese
Agarbatti (Dhoop)
Agerite powder
Aldrin (insecticide)
Algae
All flammable liquids having flash point above 65oC.
Almond oil
Aloe resin
Aluminium Chloride
Aluminium paste
Aluminium resinate
Amber
Ammonium Bromide
Ammonium Chloride
Ammonium Fluoride
Ammonium Sulphate
Amonia-acqueous solution or spirits of ammonia exceeding 30%
concentration
Anethole
Animal black
Animal glue
Animal oil
Animal protein
Animal skin
132
ANNEXURE ‘C’
Anime (a resin)
Anthracene
Antimony Pentafluoride
Antimony Pentasulfide
Antimony sulphate
Antimony sulphide
Antimony trisulphate
Antimony trisulphide
Arachis oil
Arecanuts
Arsenic Chloride
Arsenic pentasulphide
Arsenic sulphide
Arsenic Trisulfide
Artificial edible fat
Artificial horn
Artificial leather
Artificial Silk
Artificial wool
Asafoetida (gum resin)
Asafoetida oil
Asphalt /Asphalt sheet
Asphalted paper
Balata , Balsam of Peru
Bamboo mats
Barium Carbonate
Barium Sulphide
Barley
Baryllium Dustor powder
Bed feathers (Down)
Beedi leaves
Bees wax
Beet sugar
Beet tallow (Aldrin)
Benzoin (resin)
Benzoin (resinoid)
Betal Nuts
Birch (bark) oil
Bisphenol
Bitumen/Bituminised craftpaper/felt
Blacks of all kinds (not otherwise
133
ANNEXURE ‘C’
Speciafically provided for)

Borneo Camphor
Borneol
Borneo tallow
Bornyl acetate
Boron trichloride
Boron trifluoride
Bran
Bran oil
Butter fat
Butter oil
Caesium perchlorate
Caffine (pure)
Calcium Chloride
Calcium Cyanide
Calcium Oxide
Calcium Sulphide
Camphene
Camphor
Candle wax
Candles
Canvas cloth
Capric acid
Caprolactum
Caprylic acid
Carbazole
Carbon
Carbon black
Carbon paper
Carbon tetrachloride
Carbonyl
Carnauba wax
Carpet
Carvacrol
Cashew nuts
Cassia leaves
Castor oil
Cat-gut
Caustic potash
Caustic soda
Cedar wood oil
134
ANNEXURE ‘C’
Cellophane
Cellophane paper/tape
Cellulose
Cellulose acetate
Cellulose acetate films
Ceresin wax
Chaff
Chinese inset wax
Chinese tallow
Chinese wood oil
Chip (particle) board
Chloral
Chloroform
Chlorowax
Chocolates
Chopped maize
Chromyl Chloride
Cineol
Cinnabar
Citral
Citric acid
Citronellal
Citronellol
CKD Kits of Automobiles
Cloth, Asphalted
Coaltar and coal pitch
Coaltar distillate
Cocoa beans
Cocoa fat
Cocoa oil
Coconut fat
Coconut oil
Cod-liver oil
Coffee and substitutes
Coir yarn
Colamine, Colophony
Complex fertilizers
Copal
Copper sulphide
Copra
Copra cake/meal
135
ANNEXURE ‘C’
Cordage
Coriander oil
Cork
Cork wood
Corn oil
Cotton fibre in pressed bales
Cotton oil
Cotton seed oil
Cotton seed/cake
Creosote
Creosote oil
Cresidine
Cresol
Cresylic acid
Cross Linked Polyethylene Cable
(XLPE)
Croton oil
Crotonic acid
Dammer resin
Decahydronaphthalene
Decalin
Decanal
Dextrin
Diacetin
Diallyl phthalate
Diamyl phthalate
Diamyl sulphide
Dibromodifluromethane 1,2 Dibromoethane
Dibutoxy tetraglycol
Dibutyl phthalate
Dibutyl sebacate
Dibutyl tartrate 3,4 Dichloro Aniline
Dichlorohydrin
Dichloromethane
D.D.T
Dicyclo-diepoxy-carboxylate
Dicyclohexylamine
Diethyl maleate
Diethyl malonate
Diethyl oxalate
Diethyl phthalate
136
ANNEXURE ‘C’
Diethyl succinate
Dimethyl cynanmide
Dioctyl phthalate
Dried fish
Dried milkpowder
Dried leaves of all kinds
Dyes of all kinds
Earth wax
Edible fat
Edible oil
Elemi oil
Endrin
Epoxy resin
Ethoxy resins
Ethyl sulphate
Eugenol
Fats
Feathers and down
Felt
Fibrous plants
Fire wood
Fish guano/manure
Fish oil
Flax
Flowers dried of all kinds
Foam rubber, freon
Fodder
Furs
Galatlith
Gamboge
Ganja
Gases, inert and non-combustible
Gedda wax
Gelatine
Gentac latex or vinyl pyridine latex
Geranial
Geraniol
Geranium oil
Ghee fat
Glues of all kinds
Glycerine
137
ANNEXURE ‘C’
Goats wool
Grain meal
Grass max
Grass weed
Grease, lubricating
Groundnut oil
Groundnut shelled, cake, meal,
Guaiacum resin
Gums
Gunnies (loose)
Guttapercha
Hair
Hazel nut oil
Hempseed
Hempseed oil
Herbs, dried of all kinds
Hides & Skin
Hog fat oil
Hycol
Hydrogen peroxide, under 30%
Hydroquinone
Hyphone
Ianone Beta
Indian wax
Indigo
Insence
Iron powder
Iron pyrites
Iron sulphides
Japan tallow
Javelle water
Kapok
Kapok oil/seed
Kreolin
Lactose
Lamp black
Lanolin
Lard
Lard oil
Latex
Lauryl Mercaptan
138
ANNEXURE ‘C’
Lavender oil
Lead acetate
Lead Arsemates
Lead chromate
Leather
Leaves, dried of all kinds
Lemon grass oil
Lime, unslaked
Lindane
Linen
Linoleum
Linolic acid
Linseed
Linseed cake
Linseed oil
Liquor amonia
Low Matalurgical Coke
Magnesium
Magnesium alloy
Magnesium shavings
Maize oil
Maleic anhydride
Manganese Acetate
Manhaden oil
Man-made fibres (not otherwise specifically provided for) and its Clean
waste in pressed bales
Mannitol monolaurate
Margarine
Mastic
Mats of all kinds(synthetic or Vegetable)
Menthol
Mercury Cyanide
Mesitylene
Methyl bromide
Methyl cinnamate
Middle oils
Milk fat
Milk of sugar (lactose)
Milk powder
Molasses
Molasses meal
139
ANNEXURE ‘C’
Mosquito mat /coil

Mowra flowers
Mungo
Mustard oil
Mutton tallow
Myrrh
Naphthalene
Naphthylthio
Natural rubber
Neat’s foot fat
Neat’s foot oil
Neohexane
Nicotine acid
Niobe oil
Nitrogen monoxide
Nitrophenol (para)
Nitrous oxide
Nocotinic and Nicotine preparation
Nut oil
Nylon
Octadecanoic acid
Octanoic acid
Octyl acetate
Oil cake
Oil of bay
Oil of bitter almonds
Oil of Mirbane
Oil of Wintergreen
Oil paper
Oil seed meal
Oil skin
Oils, animal (not otherwise specifically provided for)
Oils, vegetable (not otherwise specifically provided for)
Oleic acid
Olein
Oleum
Olive oil
Opium
Oxalic acid
Palm kernel oil
Palm oil/butter/fat
140
ANNEXURE ‘C’
Palmarosa oil
Palmitic acid
Paper yarn
Paper in any form
Paper insulated lead sheathed cable (PILC)
Para Amisidine
Para chloro aniline
Paraffin oil
Paraffin wax
Patent leather
Peanut (shelled)
Peanut oil
Peat
Peat dust
Pectin
Penicillin storage
Perilla oil
Petitgrain oil
Petroleum coke
Petroleum jelly
Pharmaceutical preparations
Phenoplasts
Phorone
Phosgene
Phosphonium Iodide
Phthalic anhydride
Pig fat
Pine bark
Pine Oil
Pine pitch
Pine tar oil
Piperazine
Pitch
Plastic cloth
Plastic of all kinds (not otherwise specifically provided for)
Pogy oil (Menhaden oil)
Polyacrylonitrile
Polyamyl naphthalene
Polyester
Polyethylene
Polymethacrylate
141
ANNEXURE ‘C’
Polypropylene
Polyurethane, solid
Polyviny acetate
Polyvinyl chloride
Poppy seed oil
Poppy seeds
Potassium chromate
Potassium cyanide
Potassium Xanthate
Potasssium hydroxide
Pulegon
Pumpkin oil
Pyrogallo
Quinol
Ramie
Rape oil
Red oil
Reeds
Resinates
Resins, natural and synthetic, (not otherwise specificaly provided for)
Resorcinol
Rexin cloth
Rice Husk
Ricinus oil
Rock salt
Rosewood oil
Rosin
Rubber
Rubber goods
Rugs
Saccharin
Saccharose
Safrole
Salicylic acid
Sandalwood oil
Sandarac
Sassafras oil
Sawdust
Seal oil
Sealing wax
Seeds of all kinds
142
ANNEXURE ‘C’
Sesame oil
Shale oil
Shark oil
Shavings, wood, paper
Shea butter
Sheep’s wool
Shellac
Shoddy
Silicon, Spray
Silk, natural
Smoke cartridges
Sodium Acetate
Sodium Alginate
Sodium chromate
Sodium Cyanide
Sodium cyclamate
Sodium Hexameta Phosphate
Sodium Sulphide
Sodium Thiosulphate
Soot
Sorbic acid
Soya bean oil, cake
Soya beans
Soya oil
Spermaceti
Spermaceti oil
Spices
Sponges
Sponge Iron
Sponges U foam
Spruce pitch
Spruce seed oil
Spruce wood pitch
Spruce wood tar oil
Stand oil
Stannic chloride (anhydrous)
Starch
Stearic acid
Stearin
Steel wool (fine)
Strontium oxalate
143
ANNEXURE ‘C’
Strontium sulphide
Sugar
Sulphur
Sulphur chlorides
Sulphur Dioxide
Sulphur trioxide
Sun Floweroils, seeds
Sweet almond oil
Synthetic rubber
Synthetic/vegetable staple fibres (not otherwise specifically provided
for) Clean waste thereof pressed in bales
Tall oil
Tallow
Tallow oil
Tan bark
Tar (all kinds),
Tarpaulins
Tarred felt/paper/rope/string/
Tarred cloth
Tea
Tea seed oil
Teal oil
Tempering oil
Terephthalic acid
Tetra ethyl lead
Timber
Titanium tetrachloride
Tobacco and its products
Tobacco leaves
Tow (oakum)
Tow of all kinds
Tricalcium phosphate
Trichloro ethane 1,2
Trichloro Ethylene
Trisodium Phosphate
Tung oil
Turkey red oil
Twine
Tyres
Unhewn logs
Urea
144
ANNEXURE ‘C’
Uric acid
Valeric acid
Valum bark and/or fibres in pressed bales
Vaseline
Vegetable oil of all kinds (not
otherwise specifically provided for)
Vegetables (dried)
Viscose and clean waste thereof in pressed bales
Vulcanised fibre
Waste of Non-hazardous materials
Wax candles
Wax of all kinds
Whale oil
White Goods (such as Refrigerators Washing machines etc.)
Wood
Wood oil
Wood pulp (loose)
Wood shavings
Wood wool, compressed
Wood, flour
Wool fat
Wool, loose
Xanthetic oxide
Xanthogenale de potassium
Xylenol
o - Xylidine
Ylang-Ylang oil
Ziroconium Tetrachloride
CATEGORY II
Accelerene
Acetyl peroxide
All flammable liquids having flash point between 32oC and 65oC
(both inclusive)
Aloe fibres, loose
Aluminium carbide
Aluminium ferrosilicon
Aluminium hydride
Aluminium nitrate
Aluminium phosphide
145
ANNEXURE ‘C’
Aluminium powder/dust
Ammonium chromate
Ammonium cyanide
Ammonium dichromate
Ammonium persulphate
Amphetamine
Amyl nitrite
Angelica oil
Antimony pentoxide
Aqua Forties (Nitric acid)
Aqua regia
Balsams
Bamboos (whole)
Barium
Barium azide
Barium chlorate/chlorite
Barium chromate
Barium dioxide
Barium hydride
Barium manganate
Barium nitrate
Barium perchlorate
Barium permanganate
Barium peroxide
Beets, sliced, dried
Benzoyl peroxide, wet
Bergamot oil
Bleaching powder
Bran dust
Bromine
Bromine pentafluoride
Bromine trifluoride
Bromoacetone
Bronze powder
Butyl nitrate
Cadmium nitrate
Caesium peroxide
Calamus oil
Calcium
Calcium aluminium hydride
Calcium amide
146
ANNEXURE ‘C’
Calcium amonium nitrate

Calcium bromate
Calcium chlorate
Calcium cyanamide
Calcium hypochlorite
Calcium nitrate
Calcium perchlorate
Calcium permanganate
Calcium peroxide
Calcium phosphide
Calcium phosphite
Calcium resinate
Calcium silicide
Camomile oil
Canadian balsam
Caraway oil
Celluloid
Cellulose nitrate silk
Celluoid films
Chile saltpeter
Chlorates (inorganic) not otherwise specifically provided for
Chlorine
Chloropicrin
Chlorosulphuric acid
Cholorites (inorganic) not otherwise specifically provided for
Chromic acid
Chromic anhydride
Chromic oxide
Chromium trioxide
Cinnamon
Citronella oil
Clove oil
Cobalt nitrate
Cobalt potassium nitrite
Collodion paper
Collodion silk
Collodion-cotton
Copper nitrate
Cotton Fibres (others)
Crackers
Cyanogen bromide
147
ANNEXURE ‘C’
Dichloroisocynuric acid
Diketene
Ethyl silicate
Eucalyptus oil
Ferric nitrate
Ferrosilicon
Firelighters
Fireworks
Fish meal/scrap
Flares
Flash powder, Photographic
Floor wax
Fluorine
Foam plastics
Fuse
Fuses without explosives
Guano
Guano and fish-meal
Gunpowder detonating caps
Hemp
Hop oil
Hops
Hydrazine
Hydrobromic acid
Hydrochloric acid
Hydrocyanic acid
Hydrofluoric acid
Hydrogen peroxide, 30-90%
Ignition cords (fuses)
Iodine
Irish oil
Jasmine oil
Juniper oil
Jute in pressed bales
Lavender oil
Lead dioxide
Lead nitrate
Lead peroxide
Lead tetra methyl
Linalool
Lignite (Coke)
148
ANNEXURE ‘C’
Liquid insecticides/pesticides/disinfectants having flash point between

32oC and 65oC (both inclusive)
Liquid insecticides/pesticides/disinfectants having flash point below
32Oc when stored in sealed tins or drums or in bottles and/or in jars.
Lithium
Lithium chlorate
Lithium perchlorate
Lithium peroxide
Lupulin (hop meal)
Magnesium chlorate
Magnesium dioxide
Magnesium dust,also dust of high magnesium alloys.
Magnesium nitrate
Magnesium perborate
Magnesium perchlorate
Magnesium peroxide
Magnesium powder
Malt germ
Manganese dioxide
Manganese borate
Manganese green
Manganese nitrate
Manganese peroxide
Manganese powder
Marjorum oil
Matches (safety/non-safety)
Mercuric iodate
Mercurous nitrate
Neroli (oil of orange flowers)
Nickel carbonyl
Nickel nitrate
Nickel peroxide
Nickel tetracarbonyl
Nitrate/Nitrites of all kinds not otherwise specifically provided for
Nitric acid
Nitrite of soda
Nitro silk
Nitrocellulose film
Nitrocellulose plastics
Nitrocellulose silk
Nitrocotton threads
149
ANNEXURE ‘C’
Nitrogen dioxide
Nitrosyl chloride
Oil of cinnamon
Oil of thyme
Orange (peel) oil
Orange blossom oil
Orange oil
Paints, thinners and varnishes having flash point between 32oC and
65oC (both inclusive)
Paints, thinners and varnishes having flash point below 32oC when
stored in sealed tins or drums or in bottles and/or in jars
Parathion
Peppermint oil
Perchloric acid in aqueous solution > 70%
Percussion caps (for toys)
Periodic acid
Phosphoric acid
Phosphorous (red)
Phosphorous oxychloride
Phosphorous pentachloride
Phosphorous pentaoxide
Phosphorous pentasulphide
Phosphorous sesquisulphide
Phosphorous sulphide
Phosphorous trichloride
Phosphoryl chloride
Pine tar
Pinene
Portugal oil (Orange peel oil)
Potable spirits having flash point below 32oC when stored in sealed tins
or drums or in bottles and/or in jars
Potassium amide
Potassium ammonium nitrate
Potassium bromate
Potassium chlorate
Potassium dichromate
Potassium dithionate
Potassium hypochlorite
Potassium hyposulphite
Potassium nitrate
Potassium nitrite
150
ANNEXURE ‘C’
Potassium perchlorate
Potassium permanganate
Potassium peroxide
Potassium persulphate
Potassium stontium chlorate
Potassium sulphide
Pressed residue from oil seeds
Pyrolusite
Pyrotechnical articles
Rags
Rockets (fire works)
Root turpentine oil
Rose oil
Rosemary oil
Rubidium
Sage oil
Salt petre
Selenium dioxide
Sesquisulphide matches
Silver permanganate
Silver Nitrate
Silver Nitrite
Smoke generators
Sodamide
Sodium amalgam
Sodium amide
Sodium borohydride
Sodium chlorate
Sodium chlorite
Sodium Dichloro-s-Triazinetrione
and Dihydrate
Sodium dichromate
Sodium dithionite
Sodium hydrosulphide
Sodium hydrosulphite
Sodium hypochlorite
Sodium Nitrate
Sodium Nitrite
Sodium nitroethane
Sodium perborate
Sodium perchlorate
151
ANNEXURE ‘C’
Sodium periodate
Sodium permanganate
Sodium peroxide
Sodium persulphate
Soidum hypophosphite
Sparklers
Spruce wood tar
Staranise oil
Strontium
Strontium chlorate
Strontium nitrate
Strontium perchlorate
Strontium peroxide
Strontium potassium chlorate
Styrax
Sulphuric acid, (oleum/fuming/concentrated)
Sulphuryl chloride
Thallium nitrate
Thermit
Thionyl chloride
Thorium
Titanium (sponge or powder form)
Trichloro-s-triazinetrione
Trioxane
Uranium
Urea nitrate
Valerian oil
Vanadium tetrachloride
Vermouth oil
Vegetable Fibre like straw, grass,hay etc.
Vinegar
Viscose and clean waste thereof, loose
Volume bark and/or fibres, loose Waste of materials
falling under Category I
Wood wool (loose)
Zinc chloride
Zinc dithionite
Zinc hydrosulphite
Zinc nitrate
Zinc permanganate
Zinc peroxide
152
ANNEXURE ‘C’
Zinc powder
Zirconium dust powder.
CATEGORY III
Activated Carbon, Pyropheric

All flammable liquids having a flash point below 32oC.
Aluminium Alkyl Halides
Aluminium borohydride
Aluminium triethyl
Aluminium trihexyl
Aluminium tri-isobutyl
Aluminium trimethyl
Aluminium tripropyl
Amatol
Ammonium bromate
Ammonium chlorate
Ammonium Nitrate
Ammonium nitrate explosives
Ammonium perchlorate
Ammonium permanganate
Ammonium picrate
Ammunitions
Amorces
Arsine
Azides
Azimethylene
Azoimide
Baggase
Bamboos (split)
Benzol peroxide (dry)
Black powder
Blasting powder
Bromo picric acid
Butyl mercaptan
Butyl peracetate
Butyl peroctoate (tert)
Butyl peroxide (ditert)
Cadmium fulminate
Caesium
Calcium carbide
153
ANNEXURE ‘C’
Calcium chlorite
Calcium dithionate
Calcium hydrite
Calcium nitrate explosive
Calcium, pyrophoric
Cartridges
Cellulose nitrate powder
Charcoal
Cheddite
Chlorate explosive
Chloratite
Chloroazide
Coal
Coke
Collodion
Collodion wool
Copper acetylide
Copper azide
Copper carbide
Cordite
Detonators
Di (tert) butyl peroxide
Diazobenzene perchlorate
Diazobenzeneimide
Diazo-dinitrophenol
Diazo-m-nitraline perchlorate
Diazonium salts
Diborane
Dicumyl peroxide
Diglycol dinitrate
Dimethyl benzyl peroxide
Dinitro dihydroxy quinone
Dinitro glycerine
Dinitrocellulose
Dinitrochlorohydrin
Dinitrocresol
Dinitroglycol
Dinitrol
Dodecanoyl Peroxide
Dynamite
Eau de Cologne
154
ANNEXURE ‘C’
Erythrol Tetranitrate
Ethyl borate
Ethylene nitrate
Explosive charges
Explosives
Fulminates
Fuse, Detonating
Gases, Combustible
Gelatine explosive
Gelatinized nitrocellulose powders
Glycerine nitrate
Guanidine nitrate
Guanidine perchlorate
Guanylnitrosamino guanyl tetrazene
Guhr-dynamite
Gun cotton
Gun cotton solutions
Gun powder
Hay
Hydrazine nitrate
Hydrazoic acid
Hydrogen cyanide
Hydrogen peroxide, 90-100%
Hydrogen selenide
Hydrogen sulphide
Hydrolith
Instant ignition cord
Iron carbonyl
Iron Penta Carbonyl
Jute (Others)
Kresylit
Lead azide
Lead picrate
Lead styphnate
Lead trinitroresorcinate
Leco ( Coke)
Liquid insecticides/pesticides/disinfectants having flash point
below 32oC
Liquid Petroleum Gas
Lithium aluminium hydride
Lithium amide
155
ANNEXURE ‘C’
Lithium borohydride
Lithium butyl
Lithium hydride
Lyddite
Mannitol hexanitrate
Mercuric cyanate
Mercury cyanate
Mercury fulminate
Mining charges
Mixed powder (nitrocellulose)
Nitrate explosives
Nitro-carbonitrate
Nitrocellulose
Nitrocellulose powder
Nitrogeletine dynamite
Nitrogen chloride
Nitrogen trichloride
Nitroglycerine
Nitroglycerine powder
Nitroguanidine
Nitromannital
Nitro-starch
Nitro-sugar
Ozonides
Oils and greasy waste of cotton/viscose
Paints, thinners, varnishes having flash point below 32oC
Pentanone
Peracetic acid
Perchlorate explosives
Perchlorates of all kinds not otherwise specifically provided for
Perchloric acid > 70%
Perchromates
Percussion capsules
Phosphides
Phosphine
Phosphoretted hydrogen
Phosphorous (yellow or white)
Picramic acid
Picrates
Picratol
Picric acid
156
ANNEXURE ‘C’
Picryl chloride
Plasticized dynamite
Potassium
Potassium amalgam
Potassium hydride
Primers (explosives)
Propargyl bromide
Prussic acid
Raney nickel
RDX
Rubber cement
Safety explosives
Saltpetre blasting powder
Silanes
Silver acetylide
Silver fulminate
Silver picrate
Sodium
Sodium azide
Sodium dinitro phenol
Sodium hydride
Sodium hydrosulphite
Solein
Starch nitrate
Straw in pressed bales
Styphnic acid
Succinic peroxide
Sugar nitrates
Tetranitroaniline
Tetranitrobenzene
Tetranitronaphthalene
Tetranitrophenol
Titanium hydride
TNT
Trinitrocellulose
Trinitrogylcerin
Trinitronaphthalene
Trinitrophenol
Trinitrophenolmethylnitramine
Trinitro-toluene
Tripropylaluminium
Urea peroxide
157
ANNEXURE ‘C’
Waste of materials falling under Cat II & III

Zinc phosphide
Zinc picrate
Zirconium hydride
158

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INTRODUCTION

THIS IS AN UPDATED VERSION OF THE ALL INDIA FIRE TARIFF OF

THE CIRCULARS WITH THEIR RESPECTIVE REFERENCES HAVE

PROPERTY & ENGG DEPT.,

ALL INDIA FIRE TARIFF

I General rules & regulations 3

II Standard fire and special perils policy form 38

Dwellings, offices, hotels, shops, etc.,

V Utilities located outside the compounds 75

VI Storage risks outside the compounds of 79

VII Tank farms/gas holders outside the 83

VIII Add – on covers 84

VIII Classification of Earthquake Zones - 89

ANNEXURE ‘A’ Standard clauses 96

ANNEXURE ‘B’ Standard proposal form 122

ANNEXURE ‘C’ List of Hazardous Goods 132

a) Only Standard Fire and Special Perils Policy (hereinafter referred to as

Note:- Unless otherwise specifically provided for, this tariff is applicable

b) The wordings of the policy shall be as shown in Section II of the Tariff.

c) Policy(ies) should be read together with proposal form(s), schedule,

d) Policy(ies) covering Buildings and/or contents shall show blockwise

e) It is permissible to exclude Storm, Tempest, Flood and Inundation group

3. LONG TERM POLICIES

TAC Letter Fire/19/(3)/207 dt. 06.03.2003

Re : Reduction of Sum Insured under Long Term Policy

The Fire committee has decided not to allow any refund of

Generally, it is not permissible to grant mid-term cover for STFI and/or

a) Insurers must receive specific advice from the insured accompanied by

c) Cover shall commence 15 days after the receipt of the premium.

d) The premium rates as under shall be charged on short period scale

Mid-term Section iii Section vi Section

STFI 0.2% 0.35% 2.00% 0.35%

Premium shall be paid in full and shall not be accepted in instalments or

b) To issue a policy covering only specified machinery (except Boilers),

N.B. Where portions of a building and/or machinery therein are under

8. RATES FOR SHORT PERIOD INSURANCE

For a period not exceeding 15 days 10% of the Annual rate

N.B.: Extension of short period policy(ies) shall not be permitted..

9. LOADING FOR “KUTCHA” CONSTRUCTION

Building(s) having walls and/or roofs of wooden planks/thatched leaves

An additional rate of Rs.4.00%o shall be charged for such building(s) and

Note:-Temporary sheds (attached to buildings) erected during the

10.RULES FOR CANCELLATIONS

For Cancellation of insurance policy.

10.1 At the option of the insured:-

b) During the currency, if a policy is replaced with the same insurer by a

d) In case of short period policies, premium shall be retained at the

N.B.:- In case a policy is cancelled on account of a Government Order or

e) At the option of the insurer:-

Refund of premium shall be on pro-rata basis for the unexpired term.

11. MID-TERM REVISION IN SUM INSURED :

Mid-term revision in sum insured shall be allowed as follows:

Increase in sum insured : On pro-rata basis

12. ESCALATION CLAUSE :

b) The additional premium, payable in advance, will be at 50% of the full

c) The Sum Insured at any point of time would be assessed after

d) Escalation Clause will apply to policies covering Building, Machinery

f) Pro-rata condition of Average will continue to apply as usual.

Note:- For endorsement wording , see, Clause F, Annexure A.

Note: Unspecified locations shall not be allowed.

N.B.2: Presence of “ Kutcha” construction may be ignored.

N.B.3: If stocks situated within godowns/process blocks in the same

14. DECLARATION POLICIES

To take care of frequent fluctuations in stocks/stock values,