Fire insurance provides the coverage against loss or damage caused by Accidental Fire and Lightening. The properties that can be insured under this insurance are Office & Residential Building, factory Building, Plant & Machinery and various equipments. Standard Fire Insurance policy covers perils: Fire, Lightening and Earthquake. It may include coverage against loss by windstorm or earthquake and other allied risks, when such risks are covered by extension to fire insurance policies or under separate policies.
- Earthquake Fire – Covers the insured against direct loss or damage by fire occasioned by an earthquake
- Earthquake Shock – Coverage against loss or damage by shock in consequence of an earthquake
Coverage is normally given for completed buildings and contents of fully enclosed and roofed structures. Hence, buildings in the course of construction and goods stored in the open are usually excluded from the coverage. Loss or damage to the contents or interior of a building is covered only if the building itself is externally damaged.
Coverage against loss or damage caused by extraordinary rising of water following typhoon, cyclone and/or windstorm. This excludes flood caused by overflowing, bursting or leakage of water apparatus and lack of proper drainage.
Coverage against loss or damage caused by fire as a result of explosion but excluding loss or damage by boilers, economizers, steam engine pipes and other apparatus in which pressure is used.
Aircraft /Vehicle Impact
Loss or damage must be caused directly by impact of an aircraft, including articles dropped there from or land vehicle.
Coverage against loss or damage due to smoke arising from sudden, unusual and faulty operation of any heating or cooking unit but only when such unit is connected to a chimney.
Covers all direct loss or damage caused by strikers, or locked-out workers including wreckage and looting. This may be extended to cover deterioration of goods, in addition to direct loss or damage due to fire arising from public disturbance.
Covers loss or damage to the property insured indirectly caused by the malicious act of any person whether or not such act is committed in the course of a disturbance of the public peace.
To constitute fire under fire insurance policy should be actual ignition, accidental in nature and property destroyed should not be on fire in general way. Premium rate is determined by Beema Samiti, tariff which is based on class of construction, type of commodity and type of occupancy.
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