What Is Flexa In Fire Insurance?

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Legal entities or private individuals may insure their property if they have an insurable interest in it, that is, if they stand to benefit from its safety or be harmed by its loss or destruction. The owner of insurable property owns an insurable interest in the entire value of the property. If the assured does not have an interest at the time of the loss, he cannot acquire it by any act or election after he becomes aware of the loss.

Property may be insured for market value or replacement value at assured’s discretion.

In many circumstances, the replacement value is the same as the real market value. When the insurance is taken out, the sum insured should not exceed the actual market worth.

In exchange for a premium, insurers provide basic insurance to protect property against loss of value due to physical damage (PD) caused by a mix of risks known as FLEXA — Fire, Lightning, EXplosion, and Aircraft Impact. Insurers may offer coverage for extra risks such as flood, earthquake, war risks, terrorism, and others on a case-by-case basis.

Industrial property is frequently insured against business interruption (BI). It entails full insurance coverage when used in conjunction with basic coverage (PD+BI).

What is flexa rate fire insurance?

The policy covers a variety of perils divided into three categories: FLEXA (fire, lightning, explosion/implosion, and aircraft damage); NATCAT (Flood, Storm, and Allied Perils, landslides/subsidence); and Other Perils (Riots, Strikes, Malicious Damage, bush fire, bursting pipes/overflowing tanks, and other perils not listed above).

Standard Fire and Special Perils Policy

  • Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon, and Tornado are all examples of natural disasters. (STFI)
  • Fees for Architects, Surveyors, and Consulting Engineers up to 3% of the claim value.
  • Expenses incurred for debris removal to clear the site, up to 1% of the claim amount.
  • For a period of 60 days, machinery and equipment will be temporarily removed for repairs, cleaning, refurbishment, or other similar objectives.
  • At the start of the policy, the STFI and RSMD hazards can be removed, resulting in a reasonable premium rate reduction.
  • Long-term policies (for a minimum of three years) are also offered for “dwellings” solely, with appropriate premium discounts.
  • In exceptional instances, coverage for STFI and RSMD dangers can be provided during currency (where they are eliminated at inception by choice).

Significant Exclusions:

  • 5% of each claim, subject to a minimum of Rs. 10,000, originating from Lightning, STFI, Subsidence, and Landslides, including Rockslides (AOG Perils)
  • Architects’, Surveyors’, Consultant Engineers’, and Debris Removal expenses totaling more than 3% and 1% of the claim amount, respectively.
  • Earnings loss, loss due to a delay, market loss, or any other consequential or indirect loss or damage of any type.
  • If the insured building or the building containing the insured property becomes uninhabited for more than 30 days.
  • Natural heating, spontaneous combustion, or loss or damage to insured property produced by its own fermentation, natural heating, or spontaneous combustion.
  • Any loss or damage to insured property caused by a heating or drying procedure.
  • Dispossession, whether permanent or temporary, as a result of any person’s unlawful occupation.
  • * Loss or damage due to spoiling as a result of any procedure being slowed due to the operation of any insured risk.
  • Unless specifically declared, items such as bullion or unset precious stones, any curios or works of art valued over Rs.10000/-, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer systems records, explosives manuscripts, etc.
  • Any electrical and/or electronic machine, equipment, fixture, or fitting that is lost, damaged, or destroyed as a result of overrunning, high pressure, short circuiting, arcing, self-heating, or electricity leakage, regardless of the cause (including lightning).
  • * Boilers, Economisers, or other vessels, machinery, or apparatus in which steam is generated are lost, damaged, or destroyed by their own explosion/implosion.
  • * Centrifugal force is to blame (the outward force on a body moving in a curved path around another body)
  • Some of the exclusions listed above (marked *) can be covered for an extra fee. The following terms and conditions apply.

Add on covers

  • Stock deterioration in cold storage facilities due to a power outage caused by an insured peril
  • Impact Damage caused by the insured’s own vehicles, forklifts, and other similar equipment, as well as goods thrown there from third parties
  • Fees for Architects, Surveyors, and Consulting Engineers (in excess of 3 percent claim amount)

Sum Insured:

  • Property can be insured at either its depreciated cost (market value) or its replacement cost.
  • Insurance on a reinstatement (replacement) basis is advised for better protection. The amount of insurance chosen should be sufficient for reinstatement.
  • If the value of a property rises owing to factors such as rising prime costs, changing exchange rates, and so on during the policy’s term, the corresponding sum insured can be increased by up to 25% by selecting the ‘Escalation Extension.’
  • Similarly, any reduction in the sum covered due to currency fluctuations may occur, for which a premium refund will be granted on a short-term basis.
  • Although not exhaustive, the following guidelines are provided for determining the amounts to be insured for various properties.

Caution:

  • Estimated cost of Reinstatement (material + labor) of a similar property at the insured site as of the date of proposal
  • appropriate escalation for a reinstatement time that may exceed the policy term
  • As a result, in the case of a loss or damage, this coverage will pay without depreciation deductions.
  • Subject to the Sum Insured being deemed enough at the time of reinstatement.
  • Estimated cost of replacing a similar equipment of the same type and capacity at the insured location as of the date of proposal
  • depreciation based on age and usage for the amount of years since manufacture (and not from the year in which it was bought)
  • Unless an acceptable inspection report verifying effective operation is received, such machines are not insured on a reinstatement value basis.
  • Estimated landed cost of a similar machine of the same sort and capacity at the insured site as of the date of proposal
  • Subject to the Sum Insured being found adequate on the day of reinstatement completion.
  • Unless a suitable productivity report is given, second-hand machinery is usually not considered.
  • The value determined will be the agreed-upon value between the insurer and the proposer, and loss/damage will be calculated accordingly.
  • Landed cost of raw materials at the insured site at the time of proposal, plus direct and indirect expenditures incurred up to the processing stage,
  • plus manufacturing costs (direct and indirect charges incurred up to the processing step)
  • As of the date of proposal, the landed cost at which the items can be obtained from the manufacturer
  • As of the date of the proposal, the landed cost at which the items can be obtained from the Wholesaler
  • Estimated landed cost of a comparable property of the same type as of the proposal date
  • Estimated landed cost of a comparable property at the insured site as of the date of proposal

Location of Risk:

  • At the outset, the proposer must describe all sites where the properties are built, installed, stored, or kept.
  • When the owner of the insured property changes, the new owner must be notified so that the new owner can be protected by a suitable endorsement.
  • Any major change in the risk location, trade, or manufacturing activities must be reported to the insurer so that the policy can be updated to provide continuous coverage.

How to claim

  • Notify the nearest office as soon as possible, with a copy to the policy issuing office, so that a Competent Surveyor can be dispatched to assess the loss.
  • give an account of all damaged or destroyed property, with estimated quantities based on their values at the time, date, and location of loss, excluding any profit of any sort
  • cooperate with surveyors by providing the essential papers for loss assessment and liability determination.
  • All additional insurances on the property at the time of the loss should be disclosed.
  • Company received a copy of the claim notification, as well as a xerox of the policy and premium receipt.
  • Police Panchnama/Final Police Report/First Information Report (Forensic Deptt.)
  • Photographs of damaged property demonstrating the amount of the damage and/or a video recording of the loss
  • To prove the amount of the loss, the value of the damaged insured property shortly before the loss, and the value of salvage. Please make the fixed Asset Register, original Bills/Invoices, Repairs/Replacement Bills/Invoices, and stock Register available to surveyors/investigators.
  • Newspaper clipping describing the occurrence of a flood, storm, cyclone, earthquake, or landslide.
  • To prove the amount of the loss, the value of the damaged insured property shortly before the loss, and the value of salvage. Please make the fixed Asset Register, original Bills/Invoices, Repairs/Replacement Bills/Invoices, and stock Register available to surveyors/investigators.

What is IIB rate?

One of the objectives of the Insurance Information Bureau of India (IIB), according to the draft regulations released by the Insurance Regulatory and Development Authority of India (IRDAI), is to “generate benchmark rates for different lines of insurance business including life, motor, health, marine, fire, and others on a periodic basis for promoting reasonableness and sustainability of premiums in the insurance business.”

What is STF in insurance?

Slips, trips, and falls (STFs) are all too common in the workplace, and a single mishap may cost you thousands of dollars in medical bills and lost productivity.

Brian Roberts, Director of Workers Compensation and Ergonomics for CNA Insurance, has designed a six-point strategy based on Japanese workplace standards to help firms reduce STFs:

  • Sort. Organize and straighten the workplace to eliminate trip and fall dangers in aisles and pathways.
  • Put everything in its proper place. Examine the job’s motion and workflow efficiency (for example, review employee walking patterns and chart the results).
  • Shine. Remove any contaminants that could lead to bone-breaking slips, such as dirt, fluids, or liquids. This includes inspecting floor surfaces for wear and pitting, as well as cleaning and sanitizing them “Eliminate or change “transition points” (from concrete to tile, tile to carpet, carpet to marble, etc.). If your maintenance personnel has weak English skills, make sure you have the necessary floor cleaning tools and that they know how to use them effectively.
  • Standardize. Make visible postings of such in the workplace to help organize it “As indications and warnings of potential STF hazards, use “visual management” technologies.
  • Keep the lights in good working order. Lighting conditions are obscured by dusty and unclean lights, which raises the danger of STFs.
  • Sustain. To make these gains systemic and long-lasting, maintain the progress you’ve made through the other tactics.

What is terrorism cover in fire insurance?

It is commonly referred to as Standard Fire and Special Hazards Policy because it covers a wide range of perils. Let’s have a look at the policy’s inclusions in the grid below:

The policy covers any losses incurred as a result of the fire. Furthermore, any damage produced by natural heating, self-fermentation, or unrestricted burning is not covered.

If there is any damage or loss as a result of illumination, such as cracks in the roof/building area, it will be covered.

The coverage will cover any damage caused by an aircraft that results in a fire, such as articles dropped by an aircraft, airborne devices, and so on.

Fire insurance covers any damage to insured property caused by a strike, riot, or other terror mongering action.

The coverage covers any damage to the insured property caused by a natural calamity such as a storm, typhoon, or other natural disaster.

A rockslide or landslide will cause damage to your property, and you will be covered.

The property will be covered if it is damaged as a result of the water tank bursting or overflowing.

Setting fire to overgrown bushes/plants may result in property damage. This will be covered by the insurance. Please keep in mind that the coverage does not cover damage caused by a forest fire.

What is IIB tool?

Information packed as messages can flow between diverse business applications, ranging from huge traditional systems to unmanned devices such as sensors on pipelines, thanks to IBM Integration Bus. Messages are processed in two ways by IBM Integration Bus: message routing and message transformation.

What is IIB portal?

In this digital age, you may quickly and easily check the status of your bike insurance policy online. You may need this in a variety of situations, such as if another car has caused an accident with yours and you wish to check the other vehicle’s insurance status. You might also want to check the status of your own bike or two-insurance. wheeler’s This is made easier by the IIB web platform, which was developed by the IRDAI (Insurance Regulatory and Development Authority of India). Continue reading to learn how.

How many perils are there in fire insurance?

A fire insurance policy is an agreement between the policyholder and the insurance provider to compensate the insured for financial losses incurred as a result of fire-related property/goods destruction or damage. A conventional fire insurance policy covers all moveable and immovable properties like as buildings, plant and machinery, equipment and accessories, stocks, and other contents. The 12 dangers of a conventional fire insurance policy are as follows:

1) The Fire:

A fire insurance policy covers damage to insured property and goods caused by fire. This policy, however, does not cover the property/goods against:

2) Thunderstorm:

The fire insurance coverage covers fire and any other damage to the property caused by a risk such as lightning. Lightning strikes can cause cracks in the structure, which is covered by this insurance policy.

3) Ignition/Explosion:

This coverage covers losses resulting from explosions and implosions. When the interior pressure of a vessel reaches or exceeds the air pressure outside, it can explode. When the external pressure exceeds the internal pressure, an implosion occurs. Both of these events have the potential to cause a fire. The fire insurance policy, on the other hand, does not cover the loss, destruction, or damage to:

The policy also excludes damage or destruction resulting from centrifugal forces.

4) Damage to the aircraft:

5) Riot, Strike, and Negative Damage:

The loss, visible physical damage, or destruction of property caused by external aggressive means is covered by the fire insurance policy. Riots, strikes, and deliberate destruction are all done with the goal of disrupting public order.

Storms, cyclones, typhoons, and floods are all examples of natural disasters.

The above-mentioned risks cause violent devastation to property or goods, which is covered by the fire insurance policy. Under the regular peril list, however, the policy does not cover earthquakes, volcanic eruptions, or other natural disasters. To be protected against the same, the insured must request an additional cover from the insurance carrier.

7) Collision Damage:

A fire insurance policy protects the insured property from damage or destruction caused by direct contact with any rail/road vehicles or animals. It is critical, however, that the insured, any occupier of the premises, or the employees in the course of their job do not own such vehicles or animals.

8) Landslides and Subsidence, including Rock Slides:

Subsidence refers to the sinking of the land on which the property is situated, while landslide refers to the fall of a mountain or cliff’s mass of earth.

The loss, destruction, or damage immediately caused by subsidence of part of the site on which the property resides, as well as land slide and rock slide, is covered by fire insurance. It does not, however, cover damage or destruction to the property caused by:

  • Groundwork or excavations, as well as demolition, repair, or structural alterations to the property

9) Water tanks, apparatus, and pipes burst and/or overflow:

This policy also covers property loss or damage caused by water due to the above-mentioned risks, such as water tanks, apparatus, and pipelines bursting and/or overflowing.

10) Missile Missile Missile Missile Missile Missile Missile Missile Missile Miss

This policy also covers property damage or loss as a result of any missile testing operation.

11) Sprinkler Leakage from Automatic Sprinkler Systems:

This policy covers damage caused by the inadvertent release of water from a leaking automated sprinkler system. It does not, however, cover loss or damage as a result of:

12) Forest Fire:

The policy covers the costs of damage caused by fires that burn bushes and jungles. It does not, however, cover any loss, destruction, or damage resulting from the forest fire.

A Jaipur-based fabric factory was involved in the export of handcrafted finished items to various parts of India. When a fire broke out in his factory, the majority of the fabric destined for export was destroyed.

Fire engines got to the scene right away and extinguished the blaze. There were no injuries. However, both the property and the products were severely damaged by the fire.

Because the proprietor of the fabric company had purchased a fire insurance policy, he promptly contacted his underwriters. The surveyor investigated the case and concluded that the fire was caused by one of the policy’s 12 typical hazards.

The insurance covered all of the losses of the textile manufacturing company because the fire was caused by an insured danger.