FIRE

INSURANCE
BY
D.KAUSHAL
London 1666 AD

The Great Fire

 AMBIT OF FIRE INSURANCE

 FIRE
 ACCIDENTS LIKE EXPLOSION/IMPLOSION
AIRCRAFT DAMAGE, IMPACT, BURSTING
OF TANKS ETC.
 HUMAN ACT RELATED PERILS LIKE RIOT,
STRIKE, MALICIOUS DAMAGE
 NATURAL CALAMITIES LIKE LIGHTNING,
STORM, CYCLONE, FLOOD, LANDSLIDE,
EARTHQUAKE, FOREST/BUSH FIRE
 EXPENSES RESULTING FROM THE
OPERATION OF THESE PERILS
contd…
 Fire
ACTUAL IGNITION

ACCIDENTAL IN ORIGIN

ACCOMPANIED WITH FLAME

FOLLOWED BY EVOLUTION OF HEAT and/or

SMOKE
LOSSES COVERED
ONCE THERE IS A FIRE

SMOKE

HEAT

SCORCHING

DAMAGE DUE TO FIRE FIGHTING EFFORTS

LEGITIMATE ACT OF FIRE BRIGADE

COLLAPSE OF BUILDING
FIRE INSURANCE BUSINESS
IN INDIA
IS REGULATED BY THE

TARIFF ADVISORY COMMITTEE

( TAC )
(NOW CONTROLLED BY THE IRDA)

RULES AND REGULATIONS

POLICY TERMS & CONDITIONS
PREMIUM RATES
PROPOSAL FORM
 THE PRESENT FIRE TARIFF IS THE
ALL INDIA FIRE TARIFF (AIFT)
APPLICABLE FROM 31st MARCH 2001

THE STANDARD FIRE AND SPECIAL

PERIL POLICY

 ONLY STANDARD FIRE & SPECIAL

PERILS POLICY WITH THE PERMITTED
ADD ON COVERS CAN BE ISSUED

 SEPARATE FIRE POLICY IS NOT

REQUIRED FOR MANUFACTURING
RISKS AND OFFICES ETC.
 PERILS COVERED UNDER THE
STANDARD FIRE & SPECIAL PERIL
POLICY

1. FIRE
2. LIGHTNING
3. EXPLOSION / IMPLOSION …but excluding
… loss to boilers / steam generating vessels
due to their own explosion
… loss due to centrifugal forces
4. RIOT,STRIKE,MALICIOUS DAMAGE
( CAN BE EXCLUDED ON SPECIFIC
REQUEST BY INSURED )
5. AIRCRAFT DAMAGE,ARIEL / SPACE DEVICES
6. IMPACT DAMAGE BY LAND VEHICLE
OR ANIMAL

contd…
 ADD ON COVERS
AVAILABLE
TO COVER PERILS …
1.
FOREST FIRE
2.
DOS IN COLD STORAGE DUE TO POWER FAILURE
OR CHANGE IN TEMPERATURE
3. SPONTANEOUS COMBUSTION
4. EARTHQUAKE ( FIRE & SHOCK)
5. IMPACT DAMAGE DUE TO INSURED'S OWN VEHICLES
FORK LIFTS AND LIKE AND ARTICLE DROPPED
THEREFROM
6. SPOILAGE MATERIAL DAMAGE COVER
  
 (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.
  

7. TERRORISM

contd….
 ADD ON COVERS
AVAILABLE
TO COVER LOSS / EXPENSES …
8. ARCHITECTS, SURVEVORS AND ENGINEER'S FEES
( IN EXCESS OF 3 % OF CLAIM AMOUNT)
9. DEBRIS REMOVAL ( IN EXCESS OF 1% OF CLAIM
AMOUNT)

10. LEAKAGE & CONTAMINATION COVER

 (a) accidental leakage and contamination or
 (b) accidental leakage.
   The extension will apply to oils and chemicals only. It will not apply to any other commodity.

11. LOSS OF RENT-said building(s) or any part thereof is unfit for occupation in consequence of its destruction or damage
by the perils
12. ADDITIONAL EXPENSES OF RENT FOR
ALTERNATIVE ACCOMMODATION-
 The cover may be granted for non-manufacturing premises only.
  
 The cover may be granted under the Policy and not under Consequential Loss (Fire) Policy.
  
 The period of Indemnity may be limited to the period during which the original premises remain untenantable as a result
of occurrence of perils insured against. Maximum indemnity period not to exceed 3 (three) years.
  

\
contd….
ADD ON COVERS
AVAILABLE

TO COVER ACTS / OMISSIONS …

13.Start expenses-costs necessarily and reasonably incurred

by the insured consequent upon a loss or damage
covered by this policy
14. OMISSION TO INSURE ADDITIONS,ALTERATIONS

15. TEMPORARY REMOVAL OF STOCKS

 Details-Add On
Sl.No Add-On Cover Rates applicable Value on which premium has to be
charged
1. Architects, Surveyors and Consulting Policy Rate Specified sum insured not
Engineers Fees ( in excess of 3% claim
exceeding 7.5% of claim amount
amount)
2. Removal of Debris (in excess of 1% Policy Rate Specified sum insured upto
claim amount)
maximum 10% of sum insured
3. (A) Deterioration of Stocks in Cold 25% of Policy Rate Sum insured of stocks
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 Policy Rate Sum insured of stocks
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 Minimum Rs. 5 per mille Specified sum insured

5. Impact Damage due to Insured’s own 5% of Policy Rate Policy Sum insured
Rail/Road Vehicles, Fork lifts, Cranes,
Stackers and the like and articles dropped
therefrom.
6. Spontaneous Combustion Sum insured of
Category I goods Rs.0.25%o relative
Category II goods Rs.0.50%o commodity
Category III goods Rs.0.75%o
Category IV goods Rs.1.00%o
7. Omission to Insure additions, alteration or extensions Policy Rate 5% of sum
insured of BMA
8. Earthquake (Fire and Shock) Policy sum Insured
Zone I Rs.1.00%o
Zone II Rs.0.50%o
Zone III Rs.0.20%o
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
9. Spoilage Material Stocks in specified blocks Value of stocks in
Damage Cover 5 times the Policy Rate
specified blocks
Machinery, Containers & Equipments in specified blocks
2.5 times the Policy Rate
M/A value in
specified blocks.
10. Leakage And Contamination Leakage Cover Leakage &
Cover only Contamination Specified sum
Where the tanks are within the Rs.5%o Rs.10%o insured
 
Insured’s own premises Rs.6%o Rs.12%o
Where the tanks are located
elsewhere
11. 10% of policy Rate Policy sum insured
Temporary Removal of Stocks Clause

12. Policy Rate Specified sum insured

Loss Of Rent clause
13. Insurance Of Additional Expenses of Rent For An Policy Rate Specified sum insured
Alternative Accommodation
14. Policy Rate Specified sum insured
Start up Expenses
 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) Rates charged on short period scale on full sum
insured at one complex covering entire interest of the
insured for the balance period i.e. upto the expiry of the
policy.
CAT Perils Rates per mille
wef 01/07/2012
Dwellings-.05
Non Industrial-.075
Industrial-.125
Stand alone Godown storage-.125
Stand alone Open storage-.750
Steps for CAT perils
Apply STFI discount on Basic rate .15 for residential
and non industrial-.25 for industrial and standalone
storage
On this rate discount has to be applied
Add minimum STFI rates ,earthquake as mentioned
above.
Earthquare Rates
Dwellings ,Non industrial-.05 per mille for all zones.
Industrial and all other sections- as under-
Zone-I -.50
Zone II-.25
Zone III-.10
Zone IV-.05
NO Discount on Earthquake and
CAT Perils.
 MAIN EXCLUSIONS UNDER
THE STANDARD FIRE POLICY
* THEFT(EXCEPT AS IN RSMD COVER)
* SPONTANEOUS COMBUSTION(..EXTENSION..)
* BURNING OF PROPERTY BY PUBLIC
AUTHORITY
* IONISING RADIATION / RADIOACTIVITY
* WAR,MUTINY,CIVIL COMMOTION
* LOSS TO ELECTRICAL MACHINE DUE TO ITS
OVERRUNNING,SHORT-CIRCUITING,
SELFHEATING (...SEPARATE POLICY...)

contd….
 MAIN EXCLUSIONS UNDER
THE STANDARD FIRE POLICY

* EARTHQUAKE (..EXTENSION..)
* FOREST FIRE (..EXTENSION..)
* LOSS OF EARNING OR BY DELAY
* CONSEQUENTIAL LOSS (..SEPARATE POLICY..)
* 5 % OF EACH & EVERY CLAIM MINIMUM Rs.
10,000(Up to 10 cr)
* 5 % OF EACH & EVERY CLAIM MINIMUM Rs.
25,000( above 10 cr and Up to 100 cr)
* 5 % OF EACH & EVERY CLAIM MINIMUM Rs. 5
lacs (above 100 cr and Up to 1500 cr)
MAIN EXCLUSIONS UNDER
THE STANDARD FIRE POLICY

5 % OF EACH & EVERY CLAIM MINIMUM Rs. 25

lacs (above 1500 cr and Up to 2500 cr)
5 % OF EACH & EVERY CLAIM MINIMUM Rs. 50
lacs (above 2500 cr)
Long Term Policy For Dwellings
Long Term Policies shall be issued based on either of
the two methods subject to the conditions below to
house/flat owners only:
The policy shall be issued for a minimum period of 3
years.
No refund shall be allowed for mid-term cancellation
of such policies.
Mid-term inclusion of perils shall not be allowed.
Premium for entire policy period shall be collected in
advance.
: 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.
 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.
Mid-term increase in sum insured shall be allowed on
pro rata basis for the balance period.
PREMIUM RATING FACTORS ....

INDUSTRIAL COMPOUND

GAS GAS STEAM TANK FARM

T T T
U U U
R R R
RECOVERY
B B B
I I I
BOILER
N N N
E E E
GODOWN

SWITCH CONTROL
WORKSHOP
YARD ROOM & OFFICE

ALL THE BLOCKS ATTRACT THE

SAME RATE OF PREMIUM
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS
 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 but covered notice being given
not later than seven days of any such fall or
displacement may agree …
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

3. insurance ceases to attach as regards the property

affected unless the Insured
 -If the trade or manufacture carried on be altered, or
-if the nature of the occupation be changed
 -If the building insured becomes unoccupied and so
remains for a period of more than 30 days.
-If the interest in the property passes from the
insured otherwise than by will or operation of law.
 
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

4.This insurance does not cover any loss or damage

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
5.Policy 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 ,may also at any time be terminated at the
option of the Company, on 15 days' notice Company
shall be liable on prorata basis
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

6.(i) On the happening of any loss or damage the

Insured shall forthwith give notice within 15 days
after the loss or damage, deliver to the Company
-A claim in writing for the loss or damage
containing particulars
 -Particulars of all other insurances, if any
The Insured 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,etc
CONDITIONS (6)IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

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;
and if the Company shall disclaim liability for any
claim 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.
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

7. On the happening of loss or damage to any of the

property insured by this policy, the Company may
 enter and take and keep possession of the building
or premises where the loss or damage has happened.
take possession of or require to be delivered to it any
property of the Insured in the building or on the
premises at the time of the loss or damage.
keep possession of any such property and examine,
sort, arrange, remove or otherwise deal with the
same. sell any such property or dispose of the same
for account of whom it may Concern.
CONDITIONS (6)IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

 
8. If the claim be in any respect fraudulent, or if any
false declaration be made or used all benefits under
this policy shall be forfeited.
 
9. If the Company at its option, reinstate or replace
the property damaged .
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

10. If the property hereby insured shall 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 there be any other subsisting insurance or
insurances, covering the same property, Company
shall not be liable to pay or contribute more than its
rateable proportion of such loss or damage.
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

 12. SUBROGATION OF RIGHTS &

REMEDIES AGAINST THIRD PARTIES
13.FOR dispute or difference as to the quantum to
be paid under this policy (liability being otherwise
admitted) shall be referred to the decision of a sole
arbitrator be appointed by the parties , if they cannot
agree upon a single arbitrator within 30 days of any
party invoking arbitration, shall be referred to a
panel of three arbitrators, two arbitrators, one to be
appointed by each of the parties and the third to be
appointed by two arbitrators accordance with of the
Arbitration and Conciliation Act, 1996.
CONDITIONS IN THE STANDARD FIRE
POLICY RELATING TO CLAIMS(CONTD)

14. Every notice and other communication to the

Company required by these conditions must be
written or printed

 (15) AUTO-REINSTATEMENT CLAUSE

…TO PROTECT THE SUM INSURED
…REINSTATEMENT PREMIUM
ADJUSTED FROM THE CLAIM
 FIXING OF SUM INSURED
Importance of fixing the SI:-
1) Fire insurance Policy- SI should be adequate –
Average Clause.
2) S.I. Represents the limit of liability under the
policy.
3) S.I. Is the amount on which the premium is
charged.
4) Consequences of insuring for < or > than actual
value of property.
 FIXING OF SUM INSURED – BUILDINGS
Original cost- Inadequate for insurance purpose except when
new.
Book value- Adequate only for the first year and not for
succeeding years- depreciation aspect.
Market value- Present cost less depreciation for age and/ or
usage.
Reinstatement value- Present cost of replacement ( No
depreciation applied)
Formulae :- M.V. = RIV- Depreciation.

Contd…
Land value not to be included.
No fixed rate of depreciation- it depends upon the age
and future expected life.
Items like electrical installations and fittings to be
included in the building value.
FIXING OF SUM INSURED- PLANT & MACHINERY

Landed cost at site + installation charges.

Reasonable depreciation depending upon the age and
future life to be deducted.
RIV policy no depreciation.
Items like accessories, electrical fittings and other things
which are necessary for running of the machinery to be
included in the machinery value.
 FIXING OF SUM INSURED – STOCKS
Raw materials- Cost price including all the expenses
like octroi, freight etc. to bring up to the place.
Stocks in Process:- Cost of raw materials + process cost
including labor etc.
Finished goods-Manufacturer- Cost of mfg.
Wholesaler- Purchase price from mfgr.
Retailer- purchase price from wholesaler
(Profit not to be included-exception Decl Policy)
 PREMIUM RATING FACTORS

Fire hazards involved

Occupancy
Process involved
Risk Concentration
Height of the building
Class of construction of the building
 FLOATER POLICY
Floater policy can be issued for stocks at various
locations under one sum insured.
Unspecified locations are not allowed.
Rate= Highest rate +10%
If stocks are in godown/ process blocks in same
compound, no floater extra premium.
Floater Decl. Policy- Min. SI 2 crores & Min. retention
80% of deposit premium.
 DECLARATION POLICY
To take care of frequent fluctuations in the SI this
policy is issued.
Min. SI 1 crore per policy and 25 lacs per location.
Reduction in SI not allowed.
Basis of valuation- market value.
Condition of average applicable and if last
declaration wrong; two average conditions.
Basis- daily avg. value or highest clause.
 DECLARATION POLICIES

...Sum Insured is the maximum liability

... Average Sum Insured will be calculated
... and Premium adjusted
... Minimum retention 50 %
... 100% advance premium
... Declarations on pre decide basis*

* monthly declarations based on the average of the

highest value at the risk on each day or highest
value on any day of the month
 REINSTATEMENT VALUE CLAUSE
For bldg., Mach., FFF only.
In the event of loss payment for RIV.
Depreciation not to be deducted.
Reinstatement of property is compulsory.
Within 6 months intimation to reinstate to be
given & actual re-inst. To be completed within 12
months- extension possible.
Reinstatement possible at other site.
Under insurance- Condition of average.
 REINSTATEMENT VALUE CLAUSE

Modification of The Principle of Indemnity

NEW FOR OLD

Only for Building

Plant and Machinery
 REINSTATEMENT VALUE POLICY

Basis of insurance } Cost of replacement

Basis of claim settlement } or reinstatement

...Neither superior nor more extensive

...subject to actual reinstatement within12
months
...subject to condition of average
 ESCALATION CLAUSE
Automatic gradual increase in sum insured.
Selected % of increase up to 25%.
A.P. 50% of selected %. E.g. 25%= 12.5%
Applies to policies other than stocks.
In the event of loss Sum Insured will be calculated
taking into consideration Escalation.
 ESCALATION CLAUSE

Escalation clause . . .
ensures Regular & Uniform increase in sum
insured by a Pre-decided percentage

increase
PRO - RATA INCREASE . . . .
1200000
SUM INSURED
1150000
1100000
1050000 1st DAY 10,00,000
1000000
950000
900000
365th DAY 11,50,000

100th DAY : 10,00,000 + 1,50,000 x 100/365

= I0,41,096

293rd DAY : 10,00,000 + 1,50,000 x 293/365

= 11,20,411
 OMMISION TO INSURE, ALTERATIONS,
EXTENSIONS CLAUSE
1) Buildings, plant & machinery, furniture, fixtures and fittings
can be covered up to 5% of the sum insured without specific
insurance.
2) 5% additional premium to be paid at inception.

Within 30 days of expiry additions etc. to be declared and

premium to be adjusted.
TEMPORARY REMOVAL OF STOCKS CLAUSE
Up to 10% of stocks in process can be covered whilst
lying at un specified locations undergoing process.
10% extra premium to be paid in advance.
No adjustment of premium.
Stocks in excess of 10% of sum insured to be covered
specifically.
 LOCAL AUTHORITIES CLAUSE

Extension for Reinstatement Value policies

No additional premium for this extension.
Covers additional cost to comply with local
regulations in reinstating the property.
Liability if reduced under policy- under clause also
reduced proportionately.
Applies only to the damaged property, prior to
extension losses not covered, additional tax, duty etc.
not payable.
 AGREED BANK
CLAUSE
To be applied when financial institution is interested.
Any money payable to be paid to “Bank”.
Notice by Co. to ‘Bank’ sufficient.
Adjustment, settlement, arbitration- if made by
‘Bank’ binding on the insured.
Alteration etc. in risk not to prejudice ‘Bank’ interest.
Co. will be subrogated of ‘Bank’ s rights of recovery
from insured on payment.
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.
 GOOD FEATURES OF A RISK

1. Proximity of fire brigade

2. Absence of railway crossing en-route
3. Compound wall.. Additional gate width / head room of gate
4. Fire fighting appliances and systems
... Extra capacity & stand by equipment
5. Loss prevention procedures / steps
6. Low concentration of risk
7. Low accumulation of values
 DUTIES AND RESPONSIBILITIES

Before Loss:-
To intimate insurer-
1) In case of fall/ displacement of bldg. or part within 7
days.
2) alterations of trade, mfg. ,occupational change
immediately.

Un occupancy if +30 days.

Change of interest by sale etc.
 DUTIES AND RESPONSIBILITIES

AFTER LOSSCLAIM PROCEDURE)

1) Intimation to fire brigade, police etc.
2) Loss minimization exercise.
3) Notice to insurer.
4) Co operation with surveyor when appointed.
5) Lodge claim within 15 days with supporting
documents.
6) Furnish particulars of other insurances.
7) Enforce rights against third parties.
 DOCUMENTS / INFORMATION
REQUIRED FOR CLAIM SETTLEMENT
...cause of fire
...list / value of affected property details of building
/machinery
...repair / reinstatement costs
...Fire fighting/salvaging expenses
...salvage value
...enquiry/inspection report
...Fire brigade report
...FIR /Panchnama / final report
 IN THE EVENT OF LOSS – INSURER…

Loss intimation
Policy is to be scrutinized
Surveyor is appointed on the basis of estimated loss
Surveyor’s visit at site of loss
Cooperating with surveyors
Survey report received
Authentic report (fire brigade, police, meteorological,
paper cutting etc.) is required
Cause of loss- whether insured peril or not
Assessment
Settlement
Loss Adjustment
LOSS SETTLEMBuilding, Plant & Machinery
 Market value basis :
Gross Assessed Loss
Less Depreciation
Less Salvage
Less Under Insurance
Less Excess
 Reinstatement value basis :
Gross Assessed Loss
Less Salvage
Less Under Insurance
Less Excess
ENT
STOCK
Market Value basis :
Gross Assessed Loss
Less Salvage
Less Under Insurance
Less Excess
 IAR
 A comprehensive coverage for
the Industrial risks having
overall Sum Insured of Rs. 50
crores and above in one or more
locations in India. The Policy
covers not only the Physical
Losses or damage but also
consequential losses arising out
of the business interruption due
to accidental unforeseen
physical loss or damage to
COVERAGE
Fire and Special Perils including Earthquake
Consequential Loss (Fire)
Machinery Breakdown, Boilers Explosion, Electronic
Equipment
Machinery Loss of profit (optional)
Terrorism Damage (optional)
Burglary
15% underinsurance is waived
General Exclusions
Exclusion under Section 1 (Material Damage)
Faulty or defective design material or workmanship
Interruption of the water supply, gas, electricity or
fuel system or failure of the effluent disposal system
Collapse or cracking of building
Act of fraud or dishonesty
Larceny
Coastal or river erosion
Normal settlement or bedding down of new
structures
Any wilful act or wilful negligence on the part of the
insured
Cessation of work, delay
War invasion or war like situation
Nuclear weapons/ionising radiations or
contamination by radioactivity.
Exclusion under Section 2
(Business Interruption) 
This policy doesn't cover loss resulting from
interruption of or interference with business directly
or indirectly attributable to:
Any restriction or reconstruction or operation
imposed by any public authority
The insured's lack of sufficient capital for timely
restoration or replacement of property lost destroyed
or damaged
Electronic installation computer and data processing
equipment
Rating
Material Damage Section:
FIRE - Rates as per the Standard Fire Special Perils
Policy
Machinery Breakdown - 2.50%o.
Loss Of profit Section:
FLOP - as per Fire (LOP) Tariff less 10% discount
MLOP - to be referred to TAC.
NB: Based on favourable claims ratio, a discount upto
25% can be allowed.
Excess
SI upto 50 crs
Material Damage- 5% 0f claim amount subject to
minimum 5 lacs
FLOP 7 days all risk and 14 days for petrochemical
risk
 SI 100 crs to 1500 crs-minimum 10 lacs
SI 1500 crs to 2500 crs-minimum 25 lacs
SI above 2500 crs-minimum 50 lacs
THANK YOU