Standard Fire Policy for Home
Miscellaneous Insurance Policy
Properties that are covered:
All moveable/ immoveable properties of the proposer on land (excluding those in transit) broadly categorised as follows :
1. Building (including plinth and foundations, if required):
2. Plant & Machinery, Equipments & Accessories (including foundations, if required)
4. Other Contents such as
5. Specific Items such as bullion, unset precious stones, curios, work of arts, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins or paper money, cheques, books of accounts, computer system records, explosives.
Special types of Policies available for Stocks:
1. Declaration Policy :
1. average of the highest values at risk on each day (or)
2. highest value on any day of the month.
2. Floater Policy :
The policy automatically covers the following expenses incurred following loss / damage / destruction of a covered property as a result of the operation of an insured peril.
1. Losses/ Expenses not covered:
1. Applicable Deductibles as per policy
2. Expenses incurred on Architects, Surveyors' Consultant Engineers fees and Debris Removal in excess of 3% and 1% of claim amount respectively.
3. Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage of any kind.
2. Perils not covered:
1. War and allied perils
2. Ionising radiations and contamination by radioactivity
3. Pollution or Contamination
3. Properties not covered:
1. Items like manuscripts etc. unless specifically declared.
2. Cold storage stocks due to change of temperature.
3. Loss / damage/ destruction of any electrical and/or electronic machine,apparatus, fixture or fitting arising from over running, excessive pressure, short circuiting, arcing, self heating or leakage of electricity, from whatever cause including lightning.
4. Loss / damage / destruction of Boilers, Economisers or other Vessels in which steam is generated machinery or apparatus subject to Centrifugal force, by its own explosion/ implosion.
STFI and RSMD perils can be deleted at the inception of the policy for which suitable reduction in package premium rate is allowed.
|Property||Base of Insurance||Sum Insured|
|(a) Completed||Depreciated Value Basis||Estimated cost of Reinstatement (material + Labour) of a similar property as on the date of proposal with suitable escalation for the policy period less depreciation for age.|
|Reinstatement Value Basis||Same as above but without depreciation. In other words, the policy will pay, in the event of loss/ damage, without any deduction for depreciation.|
|(b) In course of Construction||Reinstatement Value Basis||Estimated Total completed value (Material + Labour)|
|2. Plant & Machinery|
|(a) Bought II hand||Market Value||Estimated landed cost of replacement of a similar machine of the same kind and capacity as on the date of proposal with suitable escalation over the policy period less depreciation for age and usage for number of years from the date of manufacturing (and not from the year in which it was bought)|
(b) Bought New
|Market Value||Estimated landed cost of replacement of a similar machine of the same kind and capacity as on the date of proposal with suitable escalation for the policy period less depreciation for age and usage.|
|RIV Basis||Estimated landed cost of a similar machine of the same kind and capacity as on the date of proposal with suitable escalation for the policy period.|
|P.S. Generally, the landed cost of an imported or indigenous machinery will include its prime cost, Customs Duty/Excise Duty , CV Duty, , loading and unloading charges, freight, insurance, incidental expenses and cost of erection at site.|
|(c) Obsolete M/c.||Agreed Value||Value has to be ascertained by an expert valuer. The value so ascertained will be the agreed value between insurer and proposer and loss/ damage will be assessed on this basis.|
|(a) Raw Material||Market Value||Landed cost at the time of proposal with suitable increase for inflation, if any.|
|(b) Finished Goods||Market Value||Landed cost of Raw materials at the time of proposal plus direct and indirect charges incurred for processing with suitable increase for inflation, if any.|
|(c) Stock in process||Market Value||Landed cost of Raw materials at the time of proposal plus direct and indirect charges incurred upto the stage of processing with suitable increase for inflation, if any.|
|P.S. : Landed cost means prime cost plus all duties plus freight, insurance and incidental charges.|
|Manufacturer||Market Value||Cost of Raw materials plus manufacturing costs (direct and indirect charges) as on the date of proposal with suitable increase for inflation, if necessary.|
|Wholesaler||Market Value||Landed cost at which the goods can be purchased from Manufacturer as on the date of proposal with suitable increase for inflation, if necessary.|
|Retailer||Market Value||Landed cost at which the goods can be purchased from Wholesaler as on the date of proposal with suitable increase for inflation, if necessary.|
|4. Furniture, Fixture & Fittings|
|Market Value||Estimated cost of replacement of property of the same kind as on the date of proposal with suitable escalation for the policy period less depreciation for usage.|
|RIV Basis||Estimated cost of Reinstatement) of a similar property as on the date of proposal with suitable escalation over the policy period.|
|5. Items to be covered specifically on declaration|
|Agreed Value Basis|
Value as certified by an expert valuer.
1. Common Documents for all claims under a Standard Fire and Special Perils Policy:
1. Certified True copy of the policy along with schedule and Endorsements/clauses.
2. Claim Form.
3. Newspaper reports on the incident, if any.
5. Past claims experience.
2. Fire Claims (additional documents)
1. Report of the Internal Committee constituted for the purpose of investigating the cause of fire.
2. Fire Brigade Report.
3. First Information Report / Letter of intimation to the Police Station duly endorsed / Police Panchnama.
4. Forensic Laboratory Report on samples collected at affected site.
5. Drug Inspector's Report on destruction of Drugs/ Pharmaceutical items (for claim on pharma products only).
6. Final Investigation Report.
7. Action taken on the suggestion of TAC/ LPA on loss minimisation of prevention.
3. Flood Claims (additional documents):
4. Explosion Claims (additional documents):
Factory Inspector's Report or Report of Director of Industrial Safety and Welfare.
Note: Policy details given are indicative, not exhaustive. Please contact your nearest NIA office for further details.