|
Home
/ General / Insurance
Basics
What are the risks covered under fire insurance?
Fire insurance business in India is governed by the All India Fire
Tariff that lays down the terms of coverage, the premium rates and
the conditions of the Fire Policy. The fire insurance policy has
been renamed as Standard Fire and Special Perils Policy. The risks
covered are as follows:
- Fire:
Destruction or damage to the property insured by its own fermentation,
natural heating or spontaneous combustion or its undergoing any
heating or drying process cannot be treated as damage due to fire.
For e.g., paints or chemicals in a factory undergoing heat treatment
and consequently damaged by fire is not covered. Further, burning
of property insured by order of any Public Authority is excluded
from the scope of cover.
- Lightning:
Lightning may result in fire damage or other types of damage,
such as a roof broken by a falling chimney struck by lightning
or cracks in a building due to a lightning strike. Both fire and
other types of damages caused by lightning are covered by the
policy.
- Explosion/ Implosion:
Explosion is defined as a sudden, violent burst with a loud report.
An explosion is caused inside a vessel when the pressure within
the vessel exceeds the atmospheric pressure acting externally
on its surface. An explosion may cause fire damage or concussion
damage.
Implosion means bursting inward or collapse. This takes place
when the external pressure exceeds the internal pressure. This
policy, however, does not cover destruction or damage caused to
the boilers (other than domestic boilers), economisers or other
vessels in which steam is generated and machinery or apparatus
subject to centrifugal force by its own explosion/ implosion.
These risks can be covered in a Boiler & Pressure Plant Insurance
Policy, which is specially designed to handle these risks.
- Aircraft Damage:
The loss or damage to the property (by fire or otherwise) directly
caused by aircraft and other aerial devices and/ or articles dropped
there from is covered. However, destruction or damage resulting
from pressure waves caused by aircraft travelling at supersonic
speed is excluded from the scope of the policy.
- Riot, Strike, Malicious and Terrorism Damage:
The act of any person taking part along with others in any disturbance
of public peace (other than war, invasion, mutiny, civil commotion
etc.) is construed to be a riot, strike or a terrorist activity.
Any loss or physical damage to the property insured directly caused
by such activity or by the action of any lawful authorities in
suppressing such disturbance or minimising its consequences is
covered. Further the wilful act of any striker or locked out worker,
in connection with a strike or a lock out, or the action of any
lawful authority in suppressing such act, resulting in visible
physical damage by external means, is also covered. Malicious
act would mean an act with malicious intent but excluding omission
of any kind by any person, resulting in visible physical damage
to the insured property, whether or not the act is committed in
the course of disturbance of public peace or not. Burglary, housebreaking,
theft or larceny does not constitute a malicious act for the purpose
of this cover.
Total or partial cessation of work or the retarding or interruption
or cessation of any process or operations; or, permanent dispossession
resulting from confiscation, commandeering, requisition or destruction
by order of the Government or any lawfully constituted authority;
or permanent or temporary dispossession of any building or plant
or unit or machinery resulting from the unlawful occupation by
any person of the same or prevention of access to the same, are
not covered.
- Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood
and Inundation:
Storm, Cyclone, Typhoon, Tempest, Tornado and Hurricane are all
various types of violent natural disturbances that are accompanied
by thunder or strong winds or heavy rainfall. Flood or Inundation
occurs when the water rises to an abnormal level. Flood or inundation
should not only be understood in the common sense of the terms,
i.e., flood in river or lakes, but also accumulation of water
due to choked drains would be deemed to be flood.
- Impact Damage:
Impact by any Rail/ Road vehicle or animal by direct contact with
the insured property is covered. However, such vehicles or animals
should not belong to or owned by the insured or any occupier of
the premises or their employees while acting in the course of
their employment.
- Subsidence and Landslide including Rockslide:
Destruction or damage caused by Subsidence of part of the site
on which the property stands or Landslide/ Rockslide is covered.
While Subsidence means sinking of land or building to a lower
level, Landslide means sliding down of land usually on a hill.
However, normal cracking, settlement or bedding down of new structures;
settlement or movement of made up ground; coastal or river erosion;
defective design or workmanship or use of defective materials;
and demolition, construction, structural alterations or repair
of any property or ground-works or excavations, are not covered.
- Bursting and/ or overflowing of Water Tanks, Apparatus and
Pipes:
Loss or damage to property by water or otherwise on account of
bursting or accidental overflowing of water tanks, apparatus and
pipes is covered.
- Missile Testing operations:
Destruction or damage due to impact or otherwise from trajectory/
projectiles in connection with missile testing operations by the
Insured or anyone else, is covered.
- Leakage from Automatic Sprinkler Installations:
Damage caused by water accidentally discharged or leaked out from
automatic sprinkler installations in the insured's premises is
covered. However, such destruction or damage caused by repairs
or alterations to the buildings or premises; repairs removal or
extension of the sprinkler installation; and defects in construction
known to the insured, are not covered.
Bush Fire:
This covers damage caused by burning, whether accidental or otherwise,
of bush and jungles and the clearing of lands by fire, but excluding
destruction or damage caused by Forest Fire.
More General Insurance Basics
Other Categories
| Back
| Top | Home
|
|
Portfolio
Manager
