Fire Insurance

What is Fire Insurance?

Fire Insurance basically covers property damage. From the above pictures we can see that it covers not only Fire but also damages to property due to natural/man made disasters.

  • Fire
  • Lightning
  • Explosion/Implosion
  • Aircraft Damage
  • Riot, Strike, Malicious Damage
  • Storm, Typhoon, Hurricane, Tornado, Flood and Inundation
  • Impact damage
  • Subsidence and landslide including Rock slide
  • Bursting and overflowing of water tanks, apparatus and Pipes
  • Missile testing operations
  • Leakage from Automatic Sprinkler Installation
  • Bush Fire
  • Earthquake/Terrorism etc are covers that have to be opted for while submitting the proposal form.

What is Claims Process?

What do I do in the event of a claim?

  • Take spot photographs of fire damage to property and contents.
  • Remove articles or stock that could be salvaged.
  • Intimate insurance company on their toll free number and obtain a claim number.
  • Obtain a certificate from fire brigade.
  • In the event of Flood / Cyclone / Earthquake / Lightning damage obtain meteorological report.
  • In the event of Riot and Strike obtain a first information report from the police authorities.
  • Submit claim form with claim bill.

What are the documents that have to be submitted for the Claim?

  • Completed claim form
  • Estimate of loss
  • Fire brigade report
  • Damaged area plan copy / plant plan copy
  • In case of flood claims- meteorological report
  • Approved plan copy of Municipal authorities
  • Placement of Fire Extinguishers-Sketch
  • In case of Implosion/Explosion report from Inspector of Boilers.
  • In case of falling of Foreign Objects/Aircraft Damage FIR for local Police Station.
  • In case of terrorist attacks FIR from Local Police Station.
  • In case of Riot and Strike FIR from Local Police Station.
  • In case of Manufacturing Units: License issued by Inspector of Factories, Stock Statement for 30 days, Statement of Stock in process and Purchase bill of Raw Materials and Statement of Finished Products with value.
  • In case of Office Buildings: Approved Plan Copy, Inventory List and Purchase bill of Furniture/Fixtures/Fittings.
  • In case of Shops: License from Local Authority under Shops and Establishment Act, Copy of Inventory for last 30 days, Copy of purchase bills, Sales Invoice for the last 30 days. In case of Sale but not delivered the list should be produced. List of Furniture/Fixtures/Fittings and Municipal Tax Receipts.
  • In case of Residential Buildings: Approved Plan Copy, List of contents, Purchase bills if available and Municipal tax receipts.

What are the reasons for disputes in a Fire Claim?

Quantum of Claim, cause of Fire, buildings extended without approved plans, faulty electrical installations, not insuring for the full value, breach of Policy Conditions and warranties for eg. “POULTRY FARMS WARRANTY “Warranted that birds in the poultry farm are not covered by this insurance.” Non inclusion of add on covers like Earthquake/Terrorism etc., Underinsurance, omission to insure additions, etc.

How do I get relief in case of disputes?

  • Make a representation to the Insurance Company.
  • If no reply is received within 15 days on making such representation make a representation to the Grievance Cell of the Insurance Company.
  • If No Reply is received or if the reply is not satisfactory then make a representation to the Insurance Ombudsman who has Quasi Judicial powers to hear the case and make adjudication.
  • If still not satisfied the next option is to go to court.