5. Riots, strike and malicious damage
Fire insurance as we call it in general terms is meant to cover the fire related losses. But the roots of this insurance are deeper. The fire insurance policy or the SFSP (standard fire & special perils) policy as is better known in the insurance industry is meant for many more than just a cover for fire losses.
Many a times the insured remains unaware of the coverage under a policy and subsequently doesn’t go for a claim against the policy. In general, a typical fire policy includes losses due to:
4. Damage due to Aircraft
6. Storm, Tempest, flood and inundation
7. Impact Damage
8. Subsidence, Landslide including rockslide
9. Bursting and overflowing of water tanks
10. Missile testing operation
11. Leakage from automatic sprinkler system
It must be understood that though a lot of fires are caused due to spontaneous combustion, yet it is not covered under the standard fire and special perils policy. It is taken as add on cover. It is suggested that the policy coverage, exclusions and add on covers must be thoroughly understood before signing for a policy.
There is other coverage also depending upon the insured’s (one who opts for insurance) wills whether to go for it or not.
It must always be borne in mind that what kind of the loss has taken place at the workplace and whether it is covered under that particular policy or not.
There are certain policies that cover all types of losses for e.g. IAR policy (Industrial All Risk Policy).
In order to encourage the insured towards safety management in the insured premises, the insurance companies offer discounts in the premium for several factors such as:
Adequate separation from the neighboring risk
Adequate distance between the blocks
Exposure to natural perils
Age of the building
Fire detection and protection arrangements
Safety management (periodical inspections, accident reporting, investigating etc)
Claim experience etc.
For this purpose the risk inspections/audits of different occupancies are carried out in order to ensure that proper risk management practices are carried out. One way or the other, this is for a mutual benefit for the insured and the insurer...... Continued. Please follow the link to read the next part.