1. STANDARD FIRE AND
BURGLARY INSURANCE

2. WHAT ARE WE GOING TO DISCUSS IN FIRE POLICY?
BASIC COVER (FIRE & LIGHTNING)
CONDITIONS
ENDORSEMENTS (ADDITIONAL COVERS)
CLAUSES
WARRANTIES

3. FIRE INSURANCE POLICY INSURANCE CONTRACT INSURED INSURER
SUBJECT MATTER OF INSURANCE

4. INSURANCE CONTRACT INSURED Pay The Premium INSURER
Pay The Compensation To The Insured Due To
Loss Or Damage To The Subject Matter Of
Insurance
SUBJECT MATTER OF INSURANCE
Eg -: on building, on stock etc...

5. PREAMBLE THE PROPOSAL AND DECLARATION WHICH SHALL
BE THE BASIS OF THIS CONTRACT
POLICY DOCUMENT IS EVIDENCE OF THE
CONTRACT

6. FIRE INSURANCE
Standard FIRE policy covers Property Damage due to:
Fire
Fire should be accidental/fortuitous
There must be an actual ignition/ fire (scorching, fermentation, smoke damage without a fire not covered)
The property that was on fire ought not have been on fire

7. FIRE INSURANCE

8. Lightning
Property damage caused by lightning (whether resulting in fire or not)
Damage to electrical installations or appliances not covered (whether resulting in fire or not)

9. THIS POLICY AND SCHEDULE SHALL READ TOGETHER AS ONE CONTRACT
Conditions
THIS POLICY AND SCHEDULE SHALL
READ TOGETHER AS ONE CONTRACT

10. Conditions
MIS-DESCRIPTION
If there be any material mis-description of any of the property hereby insured, the Company shall not be liable upon this policy.
RECEIPTS
No payment in respect of any Premium shall be deemed to be payment to the company unless a printed form of receipt shall have been given to the insured.

11. Conditions
OTHER INSURANCE
The Insured Shall give notice to the Company of any insurance or insurance already effected or which may subsequently be effected covering any of the property insured.

12. Risks not Covered - EXCLUSIONS
Conditions
Risks not Covered - EXCLUSIONS
Loss by theft during or after the occurrence of a fire
Its own fermentation, natural healing or spontaneous combustion
The burning of property by order of any public authority
Subterranean fire
Caused by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste
Earthquake, volcanic eruption or other convulsion of nature.
Typhoon, hurricane, tornado, cyclone, storm and tempest
War, invasion, act of foreign enemy, hostilities or warlike operations, civil war.
Riot, military or popular rising, insurrection, rebellion, revolution

13. Risks not Covered unless expressly included
Conditions
Risks not Covered unless expressly included
Goods held in trust or on commission
Bullion or unset precious stones
Any curio or work of art
Manuscripts, plans, drawings, or designs, patterns
Stamps, coins or paper money, cheques, books
Explosives
Forests, Bush fire

14. ALTERATIONS AND REMOVALS
Conditions
ALTERATIONS AND REMOVALS
Any alteration should be notify to the company immediately.
Eg -: . If the trade or manufacture carried on be altered
. If the nature of the occupation changed
. Unoccupied and so remain for a period of more than 30 days
. If property insured be removed to any building or place

15. Conditions
MARINE CLAUSE
This Insurance does not cover any loss or damage to property which, at the time of the happening of such loss or damage, by insured by any Marine Policy.
Cancellation
Insurance may be terminated at any time at the request
Insured – Short period rate basis
Insurer – Pro-rate basis

16. Conditions
Occurrence of loss
On the happening of any loss or damage the insured shall give notice to the company within 15 days after the loss or damage.
Forfeiture
- If the claim be in any respect fraudulent
- False declaration be made
- Wilful act
- Action or suit be not commenced within 3 months after rejection

17. Conditions
Reinstatement
The Company may 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.

18. Conditions
Subrogation of Rights
This means the insurance company has the legal right to claim compensation from any other party that caused the accident.
For example vehicle A hits B, which as a result hits C. C will claim of B’s insurance company, but that insurance company has the right to claim from A’s insurance company, as it was A that really caused the damage to C.

19. Conditions
Contribution
If there be any other insurance or insurances covering the same shall not be liable to pay or contribute more than its rateable proportion of such loss or damage

20. Sum Insured X Loss Conditions Average
If the value of the insured property is more than the sum insured on that property, the insured will be considered his own insurer for the difference and the loss payments will be proportionately reduced
This is called as the Underinsurance
Sum Insured X Loss
Value

21. Conditions
Arbitration
If any difference arises as to the amount of any loss or damage such difference shall independently of all other question be referred to the decision of an arbitrator.
Time Limit for Company’s Liability
Company not be liable for any loss or damage after the expiration of twelve months from the happening of the loss or damage unless the claim is the subject of pending action or arbitration.

22. Conditions
Notices
Every notice and other communication to the company required by written or printed.
Electrical Exclusion Clause
The company is expressly declared to be free from liability for loss of or damage to any electrical machines, apparatus, fixture or fitting.
Premium payment warranty

23. Additional Covers
Riot & Strike
To cover loss or damage by rioters and locked out workers and any authority trying to suppress such activity Where such act is committed in the course of a disturbance of the public peace

24. Exclusion under Riot & Strike
Additional Covers
Exclusion under Riot & Strike
Loss of earnings, loss by delay or other consequential losses
Loss or damage occasioned by permanent or temporary dispossession
Due to nuclear weapons material
Caused by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste
War, invasion, act of foreign enemy, hostilities or warlike operations, civil war.
Mutiny, civil commotions assuming the proportions of or amounting to a popular rising, military rising
Goods held in trust or on commission, bullion or precious stones, any curios or work of art, manuscripts, plans, drawing, moulds, unless specially mentioned as insured
Cyber attack

25. MALICIOUS DAMAGE COVER IS NOT
OFFERED WITHOUT
RIOT & STRIKE COVER.
Additional Covers
Malicious Damage
To cover loss or damage by malicious acts of few persons or by an individual
(Where not such act is committed in the course of a disturbance of the public peace)

26. Exclusion under Malicious Damage
Additional Covers
Exclusion under Malicious Damage
Loss or damage by fire or explosion
Loss or damage arising out of or in the course of burglary, house breaking, theft or larceny or any attempt thereat
Excess
“Provided always that all the conditions and provisions of the said Riot & Strike endorsement shall apply to this extension”

27. Terrorism
To cover loss or damage by Terrorists activities
Additional Covers

28. S R C C Terrorism NO RETURN OF PREMIUM SHALL BE
GRANTED IF THESE COVERS ARE CANCELLED
AT THE REQUEST OF THE INSURED
S R C C
COVER PROVIDED BY THE GOVERNMENT FUND AS PER ITS RULES
Terrorism

29. Explosion
Loss or damage to the property insured directly caused by explosion, but excluding loss of or damage to boilers, economizers, or other vessels, machinery or apparatus in which pressure is used or their contents resulting from their explosion
Additional Covers

30. Impact Damage
To cover loss or damage by a vehicle or animal not belonging to the Insured
Additional Covers

31. Aircraft Damage
To cover loss or damage by an aircraft or any articles dropped there from
Additional Covers

32. Cyclone, Storm and Tempest / Flood
To cover loss or damage by such natural disasters
Additional Covers

33. Exclusion under Cyclone, Storm and Tempest / Flood
Additional Covers
Exclusion under Cyclone, Storm and Tempest / Flood
loss or damages caused to boundary fences, boundary walls, gates, goods in open & name boards etc..
Landslides, subsidence, inundation from the Sea
Escape water from natural & artificial water course
Damage by flood due to Bursting & overflowing of Water tanks
Cover against flood will not be accepted without Cyclone/Strom/ Tempest cover
Consequential loss or damage of any kind
Excess

34. Additional Covers
Bursting or overflowing of Water tanks, Apparatus or pipes (BOT)
To cover loss or damage to the property insured directly caused by bursting or, overflowing of water tanks, Apparatus or pipes

35. Additional Covers Exclusion under BOT
Loss or damage caused whilst the building is untenanted
Riot, civil commotion, war, invasion, act of foreign enemy, rebellion, etc….
Due to nuclear weapons material
Caused by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste
Consequential loss or damage of any kind
Water discharged or leaking from any automatic sprinkler installation
“INSURED HEREBY AGREES TO KEEP THE PROPERTY HEREBY INSURED IN A GOOD AND SUBSTANTIAL STATE OF REPAIR”

36. Earthquake, Fire and shock
To cover loss or damage by Earthquake
Additional Covers

37. Spontaneous Combustion
To cover loss or damage to stocks by its own fermentation or spontaneous ignition
Additional Covers

38. Other Natural Perils - Tsunami
Additional Covers

39. Other Natural Perils – Volcanic Eruption
Additional Covers

40. Other Natural Perils – Typhoon
Additional Covers

41. Electrical Extra
To cover loss or damage to electrical appliances by lightning and electrical short-circuiting
Additional Covers

42. Additional Covers Electrical Extra
Damage to electrical installations caused by fire as a result of short-circuiting, arching, self-heating, over-running, excessive pressure or leakage of electricity from whatever cause, including lightning
There must be evidence of sustained fire (burnt marks) to claim under this extension
Full inventory is called for prior to granting of this cover
Additional Covers

43. Clauses
MORTGAGE CLAUSE
In the event of loss or damage, the company will pay the mortgagees or assignees mentioned in the schedule to the extent of their interest
BANK CLAUSE
REINSTATEMENT CLAUSE

44. = - Clauses REINSTATEMENT CLAUSE
Fire Policies are Contracts of Indemnity –
i. e.
Depreciation
Basis of Settlement
the time & place of loss = -
Amount payable then be further subjected to AVERAGE and POLICY XS, respectively if applicable.

45. SOLUTION PROVIDED BY THE INSURER
POSSIBLE SCENARIO
Cost of Repair/ Replacement
Amount Settled
<
SOLUTION PROVIDED BY THE INSURER
REINSTATEMENT CLAUSE
i.e. Full replacement the time of replacement would be paid – no deduction for wear and tear/ depreciation

46. Provided,
1 Applicable to BUILDINGS, FITTINGS, EQUIPMENT, FURNITURE & TOOLS STOCK, FOODSTUFFS, PACKING MATERIAL etc. are excluded
2 Sum Insured is adequate to cover the FULL REINSTATEMENT COST
3 Property of the SAME KIND/TYPE and NOT SUPERIOR or more EXTENSIVE than the insured property when new

47. THE REINSTATEMENT SUM INSURED SHOULD BE FIXED FOR THAT VALUEQ.
How long would it take to rebuild if my factory goes down? Q.
How much would reconstruction cost?
THE REINSTATEMENT SUM INSURED SHOULD BE FIXED FOR THAT VALUE

48. Selection of the Sum Insured under Reinstatement Policies,
FOR MACHINERY
Inflation/ Currency Depreciation
Cost of dismantling + removing the damaged item
Increased cost of importing + duty + transport + site
Other incidental expenses

49. Clauses
IDENTIFICATION CLAUSE
REMOVAL OF DEBRIS CLAUSE
Costs and expenses necessarily incurred by the insured with the consent of the company in; a. Removing debris
b. Dismantling or demolishing
of the portion or portions of the aforesaid property destroyed or damaged by fire or by any other peril insured

50. Clauses
BUILDING IN COURSE OF CONSTRUCTION CLAUSE
Company in no case exceed the value at the time of the loss of that part of the building already erected.
LOSS OF RENT
Company will be liable for the payment of rent for such portion of the time as the said building or buildings are actually untenantable following damage by any of the perils insured

51. Clauses
ARCHITECTS, SURVEYORS AND CONSULTING ENGINEERS FEES CLAUSE
Policy includes and amount in respect of the above necessarily incurred in the reinstatement of the buildings after the loss or damage. Such loss or damage and above fees shall not exceed in the aggregate the sum insured for buildings.

52. RETAIL TRADE WARRANTY
No retail trade be carried on in the premises
MANUFACTURE OR DEPOSIT OF MERCHANDISE
No portion of the premises herein described be used for the manufacture or deposit of merchandise
NO SMOKING
No smoking be permitted in the
building
Warranties

53. Warranties
TRADE WASTE WARRANTY
Cuttings and other trade waste be swept up bagged daily and removed from the premises at least once a week

54. Warranties
HAZARDOUS GOODS WARRANTY
You can stored not exceed in all one percent (1%) of the total value of stock

55. Warranties
STACKING WARRANTY
Goods should be stored in such a manner so as to permit easy access to Fire Fighters and that space of three feet should be allowed the top of the stacks and ceiling/roof and a clear space between the walls and stacks

56. Warranties
STACKING WARRANTY - PHOTOS

57. Warranties HOT WORK WARRANTY
A “permit to work” system is implemented for all contractors engaged in “hot work” of any kind
At least one worker equipped with suitable fire extinguishers and trained in fire-fighting
The area of any “hot work” is examined one hour after the work has finished
“Hot work” should never be carried out in an atmosphere containing flammable vapours or combustible material or dust

58. Warranties
STOCK BOOK WARRANTY
Stock registers/records & book of accounts have to be properly maintained and audited regularly at least – quarterly, half yearly. Insured shall keep the copy of such documents in a safer place other than the insured premises

59. Warranties
PALLET WARRANTY
The Insured undertake to store the insured stock on wooden pallets that are at least 4 inches or as stated in the policy schedule, above the ground level.

60. Warranties
POWER SURGE PROTECTOR WARRANTY
Install a reliable power surge protector to the power supply of the machines/electrical items

61. Average
Whether the Policy is effected on indemnity or Reinstatement basis, the SUM INSURED must be ADEQUATE throughout the Policy Period
If not in the event of a claim, the AMOUNT SETTLED will be DOWNWARDLY adjusted as follows:
2. REINSTATEMENT Policies
INDEMNITY Policies
SUM INSURED x LOSS
TIME & PLACE OF LOSS
SUM INSURED X LOSS
TIME & PLACE OF REINSTATEMENT

62. DEDUCTIBLE/ EXCESS (XS)
IMPORTANT AREAS
DEDUCTIBLE/ EXCESS (XS)
Insurer sets the XS based on the severity and frequency of the anticipated losses
Example
SRCC and terrorism - standard 10%
Natural perils – because losses are of catastrophic nature (very high severity), this cover attracts a higher XS
Electrical extra – because of its both high frequency and high severity, attracts a higher XS

63. STOCK DECLARATION
To effectively accommodate fluctuating stock levels - applicable to MANUFACTURERS, WHOLESALE DEALERS or IMPORTERS only
Insured to select the Sum Insured by reasonable estimation – MAXIMUM level of anticipated stock level at any given time during the Policy Period
This Estimated Sum Insured will be the Insurer’s MAXIMUM limit of liability
Insurer will charge the initial premium on 75% of the Estimated Sum Insured

64. Insured to send the MONTHLY DECLARATIONS – within 15-days of close of each month
At the end of the Policy Period, premium will will be adjusted based on the Actual Level of Stock held by the Insured during the Policy Period Accordingly, either Additional Premium is charged or a Portion of the Initial Deposit Premium is refunded

65. IMPORTANT AREAS
This means you can only insure something, if they benefit from its existence and will suffer if it ceases to exist. For example you can insure your own vehicle , but not your friend’s vehicle.
In the same way you can take out Assurance on your wife’s life, but not that of your neighbour.

66. IMPORTANT AREAS

67. IMPORTANT AREAS

68. BURGLARY INSURANCE POLICY
INSURANCE CONTRACT
INSURED (SOFTLOGIC)
INSURER (ASIAN ALLIANCE)
SUBJECT MATTER OF INSURANCE

69. WHAT ARE WE GOING TO DISCUSS IN FIRE POLICY?
BASIC COVER
EXCEPTIONS
CONDITIONS
CLAUSES
WARRANTIES

70. BURGLARY INSURANCE Standard Burglary policy covers :
The property or any part whilst within the premises shall:
(a) after actual forcible and violent entry into or exit from the premises, or
(b) following violence or threat thereof to the
insured or to any employee of the insured or to any member of the insured’s family, be stolen or damage by thieves, or
Any damage to the premises due to such forcible and violent entry or exit

71. BURGLARY INSURANCE
Premises shall mean the premises specified in the schedule exclusive of any garden, yard or open space and any garage, outbuildings etc...

72. This policy does not Covered
EXCLUSIONS
This policy does not Covered
Theft
Unexplainable disappearances
Strike or riot
Fire or explosion
Damage to plate glass or any decoration
War, invasion, act of foreign enemy, hostilities or warlike operations, civil war.
Riot, military or popular rising, insurrection, rebellion, revolution
Loss or damage occasioned by any person lawfully in the premises or member of the insured’s household or business staff or any servant of the insured

73. This policy does not Covered Cont.....
EXCLUSIONS
This policy does not Covered Cont.....
Loss or damage to deeds, bonds, money or coins, medals, stamps, jewellery, precious stones, article, books, curios, drawing, moulds, unless specially mentioned as insured
Loss of money and/other property from a safe following the use of the key to the safe or any duplicate thereof belonging to the insured, unless such key has been obtained by violence or any threat thereof
Premises are unoccupied period of thirty days
Caused by ionising radiations or contamination by radioactivity from any nuclear fuel or from any nuclear waste from the combustion of nuclear waste

74. THIS POLICY AND SCHEDULE SHALL READ TOGETHER AS ONE CONTRACT
Conditions
THIS POLICY AND SCHEDULE SHALL
READ TOGETHER AS ONE CONTRACT

75. Conditions
ALTERATIONS
MINIMISING LOSS
CLAIMS
OTHER INSURANCE
CHANGE OF INTEREST
LIMIT OF LIABILITY
AVERAGE
CANCELLATION
ARBITRATION

76. Clauses
FIRST LOSS CLAUSE
Property Insured for the first loss value described in the schedule shall at the time of any loss or damage claimable under the policy be collectively or greater value than the full value thereof, then the amount payable under this policy shall be proportionately reduced.
BANK CLAUSE
MORTGAGE CLAUSE

77. Warranties
STOCK BOOK WARRANTY
Stock registers/records & book of accounts have to be properly maintained and audited regularly at least – quarterly, half yearly. Insured shall keep the copy of such documents in a safer place other than the insured premises

78. Watchmen/security warranty
It is warranted that the premises shall be guarded by Watchmen and/ or security personnel outside normal business hours.
Warranties

79. Thank you form ASIAN ALLIANCE
Rest Assured