PE2020

Fire
Actual ignition (Presence of flame) under accidental or fortuitous circumstances is known as Fire
1 Ingredients are Ignition & Accidental)
Fire Triangle or Combusion Triangle - Three elements a fire needs to ignite: Heat, Fuel and an O
Oxygen)
Fire business has been detariffed from 1st January, 2007. (for only Rates, Terms and conditions
2 tariff)
3 Standard Fire and Special Perils Policy with the permitted “Add-on” covers if any can be issued.
Storm, Tempest, Flood and Inundation (STFI) group of perils and/or Riot, Strike, Malicious Dama
4 inception of of the policy can be excluded from the scope of the policy.
Any risk which has not been provided for in the Tariff shall be referred to the Committee for Ratin
5 2.50%0 shall be charged.
Rates shown under this tariff are minimum rates. Insurers may charge rates higher than those g
Valued policies are not issued in Fire, however it can be issued in the case of Curious, Works of
6
Machinery and the like subject to the valuation certificate being submitted and found acceptable
7 Minimum premium per policy is Rs.100-00 except for risks rateable under Sec.III.
8 Minimum premium for Tiny sector Industries is Rs. 50-00 per policy.
9 If the Policy is taken for a period not exceeding 15 days 10% of the annual rate is charged.
10 If the Policy is taken for a period not exceeding 1 month 15% of the annual rate is charged. (6m
If the Policy is taken for exceeding 9 months, the full annual rate is charged.
11
N.B.: Extension of short period policy(ies) shall not be permitted..
Generally Midterm is not permissible to grant mid-term cover for STFI perils. However, it can be
12 after 15 days from the date of receipt of premium in cash.
13 Partial Insurance is not allowed in Fire Insurance except in a particular machinery such as Boiler
be excluded
14 Payments shall be full shall not be accepted in installments or deferred payments
It is not permissible to split sum insured of the same property under various policies for different
15 derive advantage of deferred instalments for payment of premium. Notwithstanding the above,
issued for stocks where circumstances necessitate issuance of such policies
It is not permissible a) to issue a policy covering only certain portions of building. Notwithstanding
16 foundations or only the foundation of a building may be excluded. b) to issue a policy covering on
(except Boilers), parts of machine or accessories thereof housed in the same block/ building.
N.B. Where portions of a building and/or machinery therein are under different ownership, it is p
to insure separately but to the full extent of his interest on the building and/or machinery therein.
Insured's interest shall be clearly defined in the policy.
For Kutcha Construction the premium is loaded with additional rate of Rs.4.0%. (Temporary Shed
17
No Loading provided No storage in these sheds)
for Mid term Increase in Sum Insured - Prorata, Decrease in SI - Retain of Premium in Short per
18
ESCALATION: Insurers to allow automatic regular increase in the Sum Insured throughout the pe
19 for an additional premium to be paid in advance. (Maximum Increase 25%, 50% of the full rate,
selected percentage increase.)
Escalation Clause will apply to policies covering Building, Machinery and Accessories only and w
covering stock. Applicable to All Policies i.e. RIV, Normal policies, Condition of Average is still ap
Escalation SI
Floater Policies for covering stocks - various locations under one Sum Insured - Specified locatio
20
rate applicable to insured's stocks at any location with a loading of 10 %.
If stocks situated within godowns/process blocks in the same compound are covered under float
chargeable - In case Stocks in a process block are covered under the Floater Policy and the rate
higher than the storage rate, the process rate plus 10% loading shall apply. - Presence of Kutch
ignored
For issuing a Declaration Policy under Fire, minimum sum insured is Rs.1 crore and atleast at on
21 should not be less than Rs. 25 lacs. Reduction in SI is not allowed under any circumstances
It is not permission to issued declaration policy in respect of a) Insurance required for a short per
process 3) Stocks at Railway sidings.
Minimum retention of premium in Declaration Policy is 50%.
If after occurrence of any loss it is found that the amount of last declaration previous to the loss i
that ought to have been declared, then the amount which would have been recoverable by the in
such proportion as the amount of said last declaration bears to the amount that ought to have be
Floater Declaration Policy can be issued, minimum sum insured is Rs.2 crore and the minimum r
22 the annual premium.
Claim Experience Discount - Minimum SI - 50 Crs - Max. Discount/Loading 15%. Previous expe
15% has to be loaded and subsequent confirmation refund can be made. (Previous 3 years mea
23
expiring policy) - Applicable on Section IV,V,VI & VII only
FEA: Fire Extinguish Appliances Discount - Applicable on Section III,IV,V,VI & VII - Not applicable
Declaration Policies - Maximum discounts - 10% - Certified by LPA/TAC - The installation is main
24
working order at all times and an Annual Maintenance Contract (AMC) with an external agency is
25 Risks in Multiple Occupancy Industrial Estate shall be rated `Per se'

26 Silent Risk – Factories where no manufacturing/storage activities are carried out continuously for
No discount is applicable on Silent risks.
Retention of the premium shall be based on the appropriate storage rate or silent risk rate of Re.
higher for the silent risk.
Voluntary Deductibles – Suitable discount can be considered, if the insured is opted for voluntary
27 Add on covers
Computation of Risk – BASIC RATE (-) 5 % REDUCTION FOR SPRINKLERED BLOCK (–) RED
28 DELETION OF STFI AND/OR RSMD PERILS, IF OPTED (+) LOADING FOR KUTCHA CONSTR
DISCOUNT FOR CLAIM EXPERIENCE – DISCOUNT FOR FEA(-) DISCOUNT FOR VOLUNTAR
Standard Fire and Special Perils Policy covers 12 perils. FIRE, LIGHTNING, EXPLOSION/IMPLO
DAMAGE, RIOT STRIKE and MALICIOUS DAMAGE (RSMD),STORM & ALLIED PERILS (STFI
29 SUBSIDENCE AND LANDLISED INCLUDING ROCK SLIDE, BURSTING AND/OR OVERFLOW
APPARATUS AND PIPES, MISSILE TESTING OPERATIONS, LEAKAGE OF AUTMATIC SPRIN
BUSH FIRE
FIRE - Mere damage by Smoke, heating, Scorching or charring without actual burning is NOT co
caused by acid is NOT Fire Damage. i.e. Chemical burning is NOT considered as fire. Fire Dam
are in a 'fire place' for the purpose of heating is NOT a LOSS under the policy.
Fire Excludes the i) Its own fermentation, natural heating or spontaneous combustion ii) It is und
drying process iii) burning of property insured by order of any Public Authority
Once is Fire is there (within the meaning of policy), the following losses payable i) smoke and he
Walls iv) Collapse of roofs, floors etc. v) Damage caused by Fire Bridages in the discharge of the
caused by Water or Other Extinguishing agents (chemicals, foams etc) or Blowing of property to
vii) Damage to property removed from a burning building caused by exposure to weather
LIGHTNING: All the damages caused by Lightning are payable whether fire results or not
EXPLOSION / IMPLOSION: Explosion:Sudden violent burst with a loud sound, Implosion: Burs
due to external pressure. Concussion Damage - It is evidenced by broken machinery, rupturing
shattered glass, splintered timbers and widely scattered debris. (It covers only Domestic Boilers
covered separately in Engineering Insurance (BPP)
Staff Canteen in a factory the boiler is considered to be a domestic boiler
AIRCRAFT DAMAGE: Destruction or damaged caused by aircarft, other aerial or space devices
satellites) and artices dropped therefrom, excluding that caused by PRESSURE WAVES ( Super
1235 km/h)
RSMD: Loss of visible physical dmage or destruction by external violent
RSMD Excludes Total or Partial cessation of work or the retarditin or interruption or cessation of
or omissions of any kind PROCESS LOSSES, Terrorism
RSMD Excludes Destruction by order of Governement or any lawfully constituted Authority or los
occupation, burglary, theft, larceny etc. Malicious act - Disturbance of public peace)
The burden of proving is on Insured

STFI: Loss, Destruction or damage directly caused by Storm, Cyclone, Typhoon, tempest, Hurri
Inundation Excluding those resulting from Earthquake (EQ), Volcanic Eruption or other convulsio
EQ Cover is given as an add on cover, EQ, Volcanic Eruption and other convulsions of nature is
wordings to be deleted)
IMPACT DAMAGE: Loss or visible physical damage or destruction caused to the Insured propert
Rail/Road vehicle or Animal by direct contact not belonging to or owned by a) Insured or any occ
Their employees while acting in the course of their employment (Excluding OWN Rail/Road Vehi
from them)
SUBSIDENCE and LANDSLIDE including ROCKSLIDE (SLR): The losses payable excluding a)
settlement or bedding down or new structures b) the settlement or movement of made up group
d) Defective design or workmanship or use of defective materials e) demolition, construction, stru
of any property or ground works of excavations
BURSTING &/ Overflowing of WATER TANKS, APPARATUS and Pipes: Bursting includes 'break
apparatus or pipes due the build-up of internal pressure beyond their capacity and OVERFLOWI
water from an overfitted container
MISSILE TESTING OPERATIONS: Conducted by Government and their agencies
LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATION: Exluding loss or destruction dama

or alterations to the building or premises b) repairs, removal or extension of the Sprinkler Installa
construction known to the Insured
BUSH FIRE: Excluding destruction or damaged caused by FOREST FIRE. (Accdiental burning
30 There are 13 exclusion in Standard Fire and Special Perils Policy

Excess / Minimum Deductibles (Exlcuding Dwellings with Individual owners - i.e. NIL Excess) Ex
i) of per event and per location sum insured /per Insured
a) for SI upto 10 Crores - 5% of claim amount subject to minimum of Rs.10,000
b) for SI 10 to 100 Crores - 5% of claim amount subject to minimum of Rs.25,000
c) for SI 100 to 1500 Crores - 5% of claim amount subject to minimum of Rs.5,00,000 (five lakhs
d) for SI 1500 to 2500 Crores - 5% of claim amount subject to minimum of Rs.25,00,000 (Twenty
e) for SI above 2500 Crores - 5% of claim amount subject to minimum of Rs.50,00,000 (Ffity lakh
ii) Loss or Damage caused by war, civil war and kindred perils
iii Loss or Damage caused by nuclear risks
Loss or Damage caused to the insured property by pollution or contamination EXCLUDING a) Po
iv
results from Insured Peril b) any peril itselfs results from pollution or contamination
Loss, destruction or damage to Bullion, Unset precious stones, Curious, works of Art an amount
v Stamps, Plans,coins, paper Money, Cheques, Business Books, Computer System records, Explo
specifically insured in the policy
vi Destruction or damage to the stocks in cold storage premises caused by change of temparature
Loss, destruction or damage to any electrical and/or electronic machine, apparatus, fixture or fitt
vii occasioned by over-running, excessive pressure, short circuiting, arcing, self heating or leakage
cause (Electrical risks exclusion)
Damage to the particular electric machine etc. by specified electric risks are excluded but resultin
machines etc. is covered
Architec, Surveyors and Consulting Engineers Fees (3% of claim amount) and Removal of Debr
from the Insured Premisess, Dismantling or demolishing, Shoring or Propping (1% of Claim amo
viii Preparation of the Insured's Claim and Preparation of Estimation of Loss. (In Building &/ Machin
Shoring is allowed, not on Stocks & FFF)
Loss or damage by spoilage from the retardation or interrruption or cessation of any process or o
ix
the perils covered
x Loss or Damage by Earthquake, Volcanic eruption or other convulsions of nature
xi Theft during or after the occurrence of any insured peril
xii Consequential losses (loss of earning, loss by delay, loss of market, indirect lossess
Loss or damage to insured property if removed to any building or place other than insured premi
xiii
temporarily removed for repair etc. for a period not exceeding 60 days)
31 There are 15 conditions under Fire Policy
i) The policy shall be voidable in the event of mis-representation, mis-description or non-disclosure
ii) The policy cease after SEVEN days from the date of fall of displacement or any any building ther
Fall of displacement is caused by Insured peril does not Cease the policy.
If notice is given not later than Seven days of such fall (other than operation of insured peril) , the
continue the insurance subject to revised terms and conditions and by endorsement of the policy
MATERIAL ALTERATION Condition: Insurance ceases as regards the Change of trade or manuf
iii occupation, property unoccupied for more than 30 days, transfer of insurable interest except by w
Marine Clause: The property is covered by Marine Insurance is not covered under Fire Policy, Fi
iv
beyond the amount payable under Marine Policy
Cancellation: Insured option- Premium is refunded after retaining short period scale. Insurer Op
v
rata refund for unexpired risks
Duties of Insured In event of loss or damage: Immediate notification of loss, submission of claim
vi (sourght by Insurer) in 15 days, Declaration on oath or other legal form (not followed in practise),
with precedent to Insurer's liability
Limitation condition: Liability of insurer for any loss is extinguished after expiry of twelve months
Right of entry condition: Take possession of property when loss occurred and deal with it as may
such property (salvaging). - take possession of building, remove, sort, arrange salvage affected
vii operation of Insured can forfeited claim. No right of abandonment to Insured. (If insured withdra
can abandonment of property
vii FRAUD: The benefits under the policy is forfeited in case of claim is frauduelnt, the claim is sup
viii declaration, willful or
REINSTAEMENT actINDEMNITY
of the isnured or whichOption
condition: his connivance.
of Insurer for reinstatement, replace or paym
Pro-rata average (Underinsurance) condition: If the Sum Insured under the policy is less than va
ix date of loss the amount of loss payable will be proportionately reduced. Policy covers more than
item of property will be separately subject to average
x Contribution: More than one policy covering the same property.

xi subrogation: Transfer of Insured's rights and remedies to the Insurer
xii Pro-rata average (Underinsurance) condition: If the Sum Insured under the policy is less than va
date of loss: (Arbitration
Arbitration the amount and
of loss payable will
Conciliation Actbe proportionately
1996), reduced.
- Only dispute Policy covers
of Quantum, more than
Sole arbitrator is
by the parties. If the parties cannot agree upon a single arbitrator within 30 days of any party inv
xiii shall be referred to a panel of three arbitrators, one from Insured, One from Insurer and these tw
third arbitrator. (Claim pending before courts can't be referred for arbitration)
xiv Every notice or other communication to the company required by conditions must be written or p
Automatic reinstatementof of SI. Full SI has to be maintained throughout the currency of the poli
xv loss, pro-rata premium from date of loss to the date of expiry shall be payable the insured and sa
net claim amount payable.. (If Insured exercise not to reinstate option, the SI shall stand reduced
There are 15 add on covers which can covered upon payment of extra premium. A) ARCHITECT
CONSULTING ENGINEERS FESS B) REMOVAL OF DEBIRS C) DETERIORATION OF STOCK
IMPACT DAMAGE F) OMISSION TO INSURE ADDITIONS, ALTERATIONS OR EXTENSION H)
32 SHOCK) I) SPOILAGE MATERIAL DAMAGE COVER J) LEAKAGE AND CONTIMATION COVER
REMOVAL OF STOCKS CLAUSE L) LOSS OF RENT CLAUSE M) INSURANCE OF ADDITIONA
FOR AN ALTERNATIVE ACCOMODATION O) MATERIAL SPOILAGE (on fFirst Loss basis) P) T
SECTION III (Dwellings, Offices, Hotels & Shops)

33 The 'Buildings' and 'Contents' of risks rateable under this Section shall be rated 'per se'.
Stocks belonging to the insured stored in the open area adjacent to the insured's premises are h
Incidental operations such as grinding of lenses in optical frame shops, polishing and/or varnishin
occasional repairs etc. are permitted.
For seasonal storage of crackers during the currency of the policy in ' Shops dealing in goods oth
loading of 10% shall be charged on the rates applicable to 'contents'
Long-Term Fire Policies can be issued to Residential Houses (Dwellings) - Minimum 3 Years - M
(Generally 10 to 20 years). Minimum Discount 3 yrs - 15%, Maximum Discount 10 yrs and abov
34 cancellation / Mid term cancellations - Full Premium to be collected in advance. Instead of disco
automatic increase in SI - Mid term Increase in Pro-rata is allowed (REFUND is allowed on Midte
latest IRDA Circulars)
35 Four categories of Risks covered in Section III i.e. Dwellings & Offices, Cafes & Hotels, Shops (N
(Hazardous)
Pump houses, garages, compound walls and ancillary equipments and / or other utilities at the
36
carry the respective occupancy rate.
Detached/Segregated block(s) within a risk which are protected by automatic sprinkler installatio
37 pumping arrangements, etc. as per the Committee’s rules for sprinkler installation shall be allowe
basic rate(s).
Hazardous Goods - Flash point below 32oC (Closed Cup test) - Ex. hay/Spirit/crackers/matches
38
SECTION IV (Industrial Manufacturing Unit)
If two or more factories are situated in the same compound or independent products are manufa
39 compound the manufacturing blocks shall be rateable `per se’ if located detached.. Auxiliaries/m
blocks/utilities and godowns / tankfarms, pipelines, roads,,compound wall etc. in such cases sha
such manufacturing blocks.
Operations incidental to the main process shall be rated at par with the main process if such ope
inside the main process blocks.
Dwelling houses located inside the factory compound may be rated ” per se”
pumping arrangements, etc. as per the Committee’s rules for sprinkler installation shall be allowe
basic rate(s).
SECTION V (Utilities located outside the compunds of Industrial/Manufacturing Risks
40 pumping arrangements, etc. as per the Committee’s rules for sprinkler installation shall be allowe
basic rate(s).
SECTION VI (Storage risks outside the compunds of Industrial/Manufacturing Risks
41 Rates shown in this section shall apply to Buildings/Areas used for storage of materials
Operations such as packing/selecting/assorting/mending/stitching/battery charging and like which
the nature of risk are allowed to be carried out in premises
Operations such as packing/selecting/assorting/mending/stitching/battery charging and like which

the nature of risk are allowed to be carried out in premises
The presence of hazardous goods of higher category (as per Committee’s list of hazardous good
5% of the total value of the stocks may be ignored.
Utilities and miscellaneous blocks shall be rated at Re. 1.00 per mille.
Incidental open storages upto 2% of sum insured on stock can be allowed when the risk is rated
godowns
pumping arrangements, etc. as per the Committee’s rules for sprinkler installation shall be allowe
basic rate(s).
SECTION VII (TANK FARMS/GAS HOLDERS outside the compunds of Industrial/Manufactu
All tanks located in the same dyke shall carry the highest rate applicable overall.
42
Utilities and Miscellaneous Blocks shall be rated at Re. 1.00%o
Associated properties such as Pumping Stations, Compressor House, Blower House etc. shall b
applicable to respective Gas Holders/ Bullets /SpheresVessels/Tanks
ADD ON COVERS
Sl.No Add-On Cover Rates applicable Value on which

premium has to be
charged
1 Architects, Surveyors and Consulting Engineers Policy Rate Specified sum
Fees ( in excess of 3% claim amount) insured not
exceeding 7.5% of
claim amount
2 Removal of Debris (in excess of 1% claim amount) Policy Rate Specified sum
insured upto
maximum 10% of
sum insured
3 (A) Deterioration of Stocks in Cold Storage 25% of Policy Rate Sum insured of stocks
premises due to accidental power failure consequent
to damage at the premises of Power Station due to
an insured peril
(B) Deterioration of stocks in cold storage premises Policy Rate Sum insured of
due to change in temperature arising out of loss or stocks
damage to the cold storage machinery(ies) in the
Insured’s premises due to operation of insured peril.
4 Forest Fire Minimum Rs. 5 per mille Specified sum insured
5 Impact Damage due to Insured’s own Rail/Road 5% of Policy Rate Policy Sum insured
Vehicles, Fork lifts, Cranes, Stackers and the like
and articles dropped therefrom.
6 Spontaneous Combustion Sum insured of
Category I goods Rs.0.25%o relative commodity
Category II goods Rs.0.50%o
Category III goods Rs.0.75%o
Category IV goods Rs.1.00%o
7 Omission to Insure additions, alteration or Policy Rate 5% of sum insured

extensions of BMA
8 Earthquake (Fire and Policy sum Insured
Shock)
Zone I Rs.1.00%o
Zone II Rs.0.50%o
Zone III Rs.0.20%o
Zone IV Rs.0.10%o
Note :- Dwelling, offices, hotels, shops etc rateable under Section III of the tariff can be covered by charging a
uniform rate of Re 0.10%0 regardless of the zones
9 Spoilage Stocks in specified blocks Value of stocks in

Material specified blocks
Damage Cover
5 times the Policy Rate
M/A value in
specified blocks.
Machinery, Containers & Equipments in specified blocks
2.5 times the Policy Rate
10 Leakage And Contamination Leakage Cover only Leakage &
Cover Contamination
Where the tanks are within the Rs.5%o Rs.10%o
Insured’s own premises
Where the tanks are located Rs.6%o Rs.12%o

elsewhere
11 Temporary Removal of Stocks 10% of policy Rate
Clause
12 Loss Of Rent clause Policy Rate
13 Insurance Of Additional Expenses of Rent Policy Rate

For An Alternative Accommodation
14 Start up Expenses Policy Rate
43 Annual premium shall be charged for such mid-term inclusions. Also no refund of premium shall
covers being cancelled mid-term unless the Policy is cancelled simultaneously or replaced by a f
add-on covers for an identical or increased amount.
Policy Rate means either Policy Rate in case of specific industries or Average rate in case of mu
manufacturing ind
44 Architects, Surveyors and Consulting Engineers Fees ( in excess of 3% of the claim amou
adjusted loss
this does not include any cost in connection with the preparation of the Insured’s claim or estima
damage by insured perils
for plans, specification tenders, quantities and services in connection with the superintendence o
Building, Machinery, Accessories and equipment insured under the policy
45 Removal of Debris (in excess of 1% of the claim amount) - Maximum 10% of Total SUM INSUR
46 (A) Deterioration of Stocks in Cold Storage premises due to accidental power failure consequent
premises of Power Station due to an insured peril
(B) Deterioration of stocks in cold storage premises due to change in temperature arising out of l
storage machinery(ies) in the Insured’s premises due to operation of insured peril.
Company shall not be liable for any loss unless the duration of each such failure exceeds 24 hou
Company shall not be liable for any loss occasioned by the deliberate act of the Government, Mu
or Supply Authority not performed for the sole purpose of safeguarding life or protecting any part
undertaking’s systems or by the exercise by any such authority of its power to withhold or restric
Forest Fire: policy shall extend to include loss of or damage to the property insured directly caus
47 accidental or otherwise, of forest, bush and jungles and the clearing of lands by Fire
Where loss experience for previous 5 years excluding the expiring policy period is less than 30%
rate may be considered
Where loss experience is above 60%, the rate shall be adjusted in such a way that the loss expe
worked out as given in Note 1 above be adjusted to 60% subject to a maximum rate of Rs.15%o
Impact Damage due to Insured’s own Rail/Road Vehicles, Fork lifts, Cranes, Stackers and the li
48 therefrom
49 Spontaneous Combustion: 4 Categories and SI of relative commodity i.e. stocks
Omission to Insure additions, alterations or extensions - Applicable for Building, Plant, Mach
50 STOCKS - Covers a) at within described premises b) for use as factories
The liability under this Extension shall not exceed in respect of (a) above, 5% of the Sum Insured
of (b) above, 5% of the Sum Insured by item No..........
All new additions to Buildings and/or Machinery and Plant not specifically insured/included during
should be declared at the end of the year and suitable additional premium paid on pro rata basis
completion
Insured failsoftothe construction
declare /erection
the values of additions
of such additions within
may be 30suitably adjusted.
days after the expiry of the policy, t
the advance premium collected
Earthquake (Fire and Shock): Extension cover shall be granted only if the entire property in on
location covered under the policy is extended to cover this risk and the Sum Insured for this exte
51
Sum Insured against the risk covered under main policy except for the value of the plinth and fou
building(s)..
52 SPOILAGE MATERIAL DAMAGE COVER: Policy may be extended to include spoilage risk sub
conditions:
The cover shall extend to material damage i.e. i) Loss of stock in process and ii) Damage to Mac
equipment (including cost of removal of debris and cleaning) and shall be provided by a separate
subject to the conditions that the peril causing the spoilage should be the same as those covered
The cover must be for all stocks and machinery, container and equipment in specified blocks, sp
declared for each block and must be made subject to ‘Average’.
LEAKAGE AND CONTAMINATION COVER: Extended to cover the risks of a) Accidental leakag
53 accidental leakage. Apply only to OILS and CHEMICALS.
Insured Shall arrange Inspection for contamination cover for purity from Independent agency for
cleanliness, fitness of the pipelines and pumping equipment. (Everytime empty of stocks, require
above)
72 hours clause applicable for EQ, Market value settlement
each claim is subject to an excess of 1% on each tank with a minimum of Rs. 60,000/- each loss
TEMPORARY REMOVAL OF STOCKS CLAUSE: It is agreed that the stock insured hereby not
54 sum insured of such stock is covered while temporarily removed to any other premises for purpo
processing or finishing or other similar purposes
each claim is subject to an excess of 1% on each tank with a minimum of Rs. 60,000/- each loss
55 LOSS OF RENT CLAUSE: Loss of rent caused by Insured Perils is covered
INSURANCE OF ADDITIONAL EXPENSES OF RENT FOR AN ALTERNATIVE ACCOMMODAT
56
of rent for an alternative accommodation in respect of non-manufacturing risks may be covered
The cover may be granted under the Policy and not under Consequential Loss (Fire) Policy.
Maximum Indemnity period is 3 years
The cover may be limited to buildings other than those of “Kutcha” construction.
The area for alternative accommodation may be equivalent to the area presently occupied. How
apply in respect of locality for the alternative accommodation, so long as the alternative accomm
same city of town.
Cover may be permitted to the tenant as also to the Owner-Occupant. Further, in respect of the
alternative accommodation may be limited to the area presently under his occupation
a) It will be compulsory for i) the Owner-Occupant to insure both building and contents. Ii)
contents of the premises for which he is seeking this extension
Start up Expenses: extends to cover start-up costs necessarily and reasonably incurred by the
57
a loss or damage covered by this policy
58 AGREED BANK CLAUSE
Bank Acts as Agent for collecting claim (monies payable), (Change of Alterations, process, insura
applicalbe as far as bank doesnot have knowledge
Notices, Monies payable, arbitration, communications sent to Bank is binding on all parties
59 CONTRACT PRICE Insurance only for IMPORTED GOODS
DESIGNATION OF PROPERTY CLAUSE: the insurers agree to accept the designation under wh
60 entered in the insured's books.
61 REINSTATEMENT VALUE POLICIES - Applicable only for Buildings, machinery & FFF (not for s
Reinstatement has to complete within 12 months from the date of loss
Consent of Reinstatement/replace has to be confirmed within 6 months by Insured to Insurer
LOCAL AUTHORITIES CLAUSE: Reinstatement Value Policy may be extended to cover addition
62 solely by reason of the necessity to comply with the regulations of local authority by incorporating
the policy
According to Fire Tariff – there are four Earthquake Zone, namely as Zone A, B, C & D. The high
63
Zone A and the lower rate is charged for Zone D.
64 Upon the basis of claim experience the premium can be loaded or discount can be given.
65 Maximum Discount for better claim experience is 15%.
66 If the incurred claim ratio is beyond 500%, the premium can be loaded with 100%.
Other types of discounts are available in Fire for improvement of the risk such Fire Extinguisher
67 which can be maximum 15%
68
Mega Risks - Risks having total sum isnured of Rs. 2,500-00 crores or more at one location for p
69 material damage and business interruption combined are known as Mega Risks.
70 List of Hazardous goods can be classified into three categories.
71
72 Reinstatement Value Policies can be not be issued to cover Stock, Stock-in-process, raw materia
73 If the policy is taken on Reinstatement Value, it does not mean that Under Insurance Clause will
74 Under Reinstatement Value Policy – Reinstatement must be carried out by the insured and comp
75 after the destruction
Industrial or damage,
All Risks Policy orawithin
– This is packagesuchcover
extended time for
designed may be allowed
industrial by the insurer,
policies(both fail
manufac
76 facilities) with
Industrial an overall
All Risks sum sum assured
Policy(Section-II)- of Rs.
It allows 100insurance
under crores and above.
upto 15% ofThethepolicy
sum provides
insured. cov
77 Calculation of under insurance – Sum insured/Market value X Loss
78 Voluntary Deductibles – Suitable discount can be considered, if the insured is opted for voluntary
79 Advance Loss of Profit Policy covers – Loss of projected profit due to interruption of project by a
P M L – Probable Maximum Loss – This is a calculation by which an insurer can fix his liability in
80
particular time.
81 In the case of a loss under the Fire Policy, the sum insured is reduced to that extent of amount o
The fixing of sum insured under Fire Policy for Building, Plant & Machinery and Furnitures , Fixtu
82
Market Value or Reinstatement Value.
83 Sequence of Claim settlement - Assessed loss - depreciation - salvage - pro-rata average - exce
84 General Law of Contract, Common Law, Indian Contracts Act 1872 is applicable for Fire Insuranc
85 Fire Insurance Business is Defined in Section 2 of Insruance Act 1938
86 Unless otherwise specifically provided for, Fire tariff is applicable to land-based properties only. (
87 Transfer of Insurabel Interest in Fire Policy NOT Automatic. Except in case of will or operation of
Policy form consists of Premable and operative Clause (Parties of the Contract, Perils covered a
88 Insured), General Exclusions and General Conditions
89
LOP
Consequential Loss of Profits (CLOP) / Business Interruption (BI) / Loss of Profits (LOP)
Covers the Earning capacity of the property, trading losses (Net Profit, Standing Charges, ICOW
1
working) due to total or partial stoppage of business by operation of Insured perils
2 Net Profit: Margin of income over all expenses (Turnover - (Variable + Standing charges))
3 Standing Charges: The Expenses incurred whether is business running or stoppped
4 Increased Cost of Working: Additional expenditure incurred by insured to maintain the business
5 Turnover: Money paid or payable to the Insured (i.e. Sales) or Received/Receivables
6 Variable Charges: The Expenses are direct proportion to the volume of business transacted
7 Gross Profit = Net Profit + standing charges
8 Net profit = Turnover - Variable Charges - Standing Charges
Rate of Gross Profit = Gross Profit (Net Profit + standing charges)/ Turnover
9 Indemnity period: 3 months to 3 years (Time to reinstate the Building, Machinery etc in case of lo
alter Indemnity period once the policy is issued
10 Suminsured is standing charges + net profit
11 Indemnity period is less than 12 months, Sum Insured should be Annual Gross Profit
12 Indemnity period is more than 12 months Sum Insured should be Indemnity period * Annual Gros
13 Miscellaneous standing charges should not exceeding 5 % of the Total amount of the Insured Sta
14 The CL (Fire) Insurance Policy would be applicable for all risks covered under SFSPerils Policy o
No Consequential Loss (Fire) Insurance Policy may be issued except under the standard terms a
15 lower than the rates provided in this Tariff without the specific approval of the Tariff Advisory Com
16 LOP can NOT be issued to pay a percentage of the fire loss or a fixed sum or percentage regard
Issue of the Policy on a basis other than the provided for in this Tariff is not permitted e.g. issue o
17 standing charges only by altering the policy and specification wordings is not allowed
18 All perils under the Standard Fire and Special Perils Policy must necessarily be covered under C
The CLOPolicy may also be extended to cover the Add-On Perils insured by the fire Material Dam
19 additional premium which must be shown separately on the policy
Whenever CLOP do not cover all the perils listed in the material damage cover, the specific exclu
20 the face of the Policy:
21 It is not permissible to grant cover under the CLOP for explosion and collapse of steam boilers.
22 It is not permissible to grant Consequential Loss Insurance cover in respect of – a) Depreciation
Except for Auditor‟s fees it is not permissible to give any undertaking to pay the fees of any perso
23 .in connection with the preparation or verification of a claim.
24 Material Damage Proviso: Valid Fire policy exist and in force and the liability under property dam
25 Return of Premium: The full premium is to be collected in advance on Estimated Gross Profit
If Actual Gross profit is less than Estimated Gross Profit , Refund may be allowed for difference o
Refund is 50%. (TAC may grant upto 75% refund maximum), Indemnity period should be more th
26 Auditor has to certify and request has to made to Insurer within 12 months from expiry of policy (
wages item)
Extension to cover loss due to accidental failure of public electricity/gas/water supply: Maximum
27 Excess 24 hours. Water supply is granted suitable warranty excluding cover for damage to the ja
works department
28 Accumulated Stock Clause: In adjusting any loss, account shall be taken and an equitable allowa
in turnover due to the damage is postponed by reason of the Turnover being temporarily maintai
stocks of finished goods in the Insured‟s warehouses
29 CLOP may be extended to Suppliers‟ Premises and Customers‟ Premises
Unspecified locations and suppliers‟ premises abroad should not be covered under this extensio
The extension should be restricted to cover only original manufacturers premises and should not
intermediary
Two Supplierstraders‟ premisesThree Suppliers - 100% loading, Four Suppliers - 150% Loading
- 50% loading,
The extension for „customers‟ premises shall not be granted i) unnmaed customers, customers p
Less than 5% of the SumInsured
Compulsory Time Exclusion Clause for Risks rated under Petrochemical Tariff only: (i.e. 7 days o
Turnover on Gross Profit)
CLOP Schedule contains the Insured, the Business, the premises, them sum insured, period of i
30
insruance, perils covered, rate, premium
Specification important part of the policy: Item insured under the policy and relative sum insured,
31 and Auditor's Fees ii) Definitions and iii) A formula for ascertaining the liability for any loss
32 Annual turnover: Turnover during the twelve months immediately before the date of the damage
Standard Turnover: Indemnity period previous years turnover. (i.e. Apr 2019 - Jun 2019 is Indem
33 occurred and indemnified, Standard Turnover is Apr 2018 - Jun 2018)
Adjustment Clause: A trend either upward or downward must therefore be taken into account wh
34 gross profit. (Policy Inception date to Date of loss and corresponding previous year periods will b
upward/downward trend (all Essential factors)
35 In ICOW- GP * Amount of reduction avoided (Incurred Charges) - Any savings
Departmental Clause: If the business be conducted in different departments, the independent tra
36 ascertainable, the provisions of IN RESPECT OF REDUCTION IN TURNOVER & ICOW of GRO
separately to each department affected by the damage
if the Sum Insured by the said item be less than the aggregate of the sum produced by applying
each department of the business (whether affected by the damage or not) to the relative Annual
amount payable shall be proportionately reduced.”
If any Standing charges are not insured, then that proportion of additional expenses will be reduc
Economic limit - Additional Expenditure in ICOW cannot exceed Gross Profit
37 Policy ceases if; the business be wound up or carried on by a liquidator or receiver or permanen
The Insure's interest ceases otherwise than by death
Loss of Goodwills, fines, penalties, Loss of market, failure to recover book debts owing to destru
38 claims, litigation cost, depreciation of undamaged stocks, underinsurance of PD & BI
CLOP Policy having 7 conditions (Alteration made in Business/Premiss, Alteration in addition/del

39 Account Payments, limitation condition - 12 months after expiry or 3 months from the date of pay
should read as together, Exclusion of War and Kindered perils, Automatic reinstatement
The rate of premium for CL Policy is Basis rate * percentage of the Indemnity period (Separate fo
40
other than Continuous Process and Tea factories)
41 Basis rates for CL Policy is not less than 1.25 times of full average fire rate
Basis rates can't be altered when the factory becomes silent
Methods for Insuring wages: a) Insurance for full Indemnity period b) Annual method c) Period ba
42 Dual basis of Insurance (Two important features of dual basis are i) Carry over provision ii) optio
43 Lay-off / Retrenchment Compensation:Covers the provisions of Industrial disputes act 1947
44 Auditors Fees: The expenses incurred for produce books of accounts and other documentary ev
45 Alternative Basis ClauseL Output Bais (replaced turnover with Output, and it related to Quantity o
New Business Clause:The loss occurred before completion of first year's trading, Gross profit ha
46
damage - date of commencement
Revenue Policies : is issued for service oriented/related entities such as clubs, hotels, private sc
47 is Money paid or payable to the insured for services rendered in the course of business)
48 Gross Fees policy is suitable for Solicitors, Cas etc.(i.e. Money paid or payable to the insured for
49 Losses if any has to intimate within 30 days after expiry of the policy
PETROCHEMICAL TARIFF
1 Hydro Carbon / Natural gas as basic raw material is in excess of 35% of Total Su
2 Total Sum Insured in one compound/complex exceeds 50 crores
The minimum temperature at which a flammable liquid gives off flammable vapour as determined
Martin closed cup method unless otherwise specified.
3
4 Silent risk is 60 days
Minimum requirement: a) Fire protection - Protected with hand appliances b) Electrical installatio
5
down by TAC
6 No tank used for storing Calss A and B products has a storage capacity exceeding 3
Classification of flammable materials (Class A - Flash point upto 23oC, Class B - Flash Point ab
7 Class C - Flash point above 65- 93, Class D above 93oC
8 Mutual aid schemes
IAR (Industrial All Risks Policy)
All Industrial risks other than risks rateable under Petrochemicals Tariff are covered. Minimum SI
releaxed SI Norms)
1
2 Section I - Material Damage , Section II - Business Interruption
3 All Risks cover (Only mentioned Exlcuded properties and Excluded perils)
The covers i) Fire & Special perils ii) Burglary iii) Machinery Break Down, Boiler Explosion, Electr
Insurance iv) Business Interruption for (Fire & Special perils). MLOP is optional
4
5 Application form with Insurance company engineer inspection report is mandatory
SI - Building, Machinery, FFF, Electrical installations - RIV, Stocks - Market value (Declaration of
IAR)
6
7 IAR is subject to itemwise Underinsurance but upto 15% of Underisnurance can be waived
Rates for this policy will be based on a) The detailed Risk Assessment report of the Engineer b) d
8 Insured c) Claims experience
Compulsory Deductibles (Excess): for material damage : 5% of claim amount subject to minimum
Profits - 7 days Standard Gross Profit
9
Voluntary Deductibles - Material Damage -10 L - 10% discount, 15 L - 15% discount, 20 L - 20%
10 discount
Voluntary Deductibles - Business Interruption -7D GP - Min. 10 L - 5% Disc, 14D GP -Min. 15 L -
11 Min. 20 L - 15% discount, 28D GP - Min. 25 L - 20% discount, 35D GP - Min. 30L - 25% discount
Clauses: Following clauses may be attached to the Policy by adjusting or providing additional Su
applicable i) i. Agreed Bank Clause
ii. Architects', Surveyors' and Consulting Engineers' Fees Clause
iii. Designation of Property Clause
12 iv. Escalation clause
v. Omission to Insure Additions, Alterations or Extensions Clause
vi. Temporary Removal of Stocks Clause
Risk Assessment report : Risk Assessment Report of the Insurance Company Engineer for each
i. checklist given in Annexure III duly filled in and
ii site/layout plan
13
Risk Assessment Report shall contain the following: a) Process details b) Storage details c) Op
e) Electrical Installations f) Safety g) Fire Protection h) Security i) Housekeeping j) Probable Max
Plant and general observations on the condition of the Plant. l) Details of Claims Experience for a
m) History of natural hazards events at the locations n) Machinery Loss of Profit detailed inspect
recommendations of the Engineer
14
15 EXCLUDED CLAUSES
A i) faulty or defective design materials or workmanship inherent vice latent defect gradual deteri
distortion or wear and tear ii) interruption of the water supply gas electricity or fuel systems or fai
disposal systems to and from the premises
b) i) collapse or cracking of buildings
ii) corrosion rust extremes or changes in temperature dampness dryness wet or dry rot fungus sh
of weight pollution contamination change in colour flavour texture or finish action of light vermin i
scratching
c) i) larceny ii) acts of fraud or dishonesty
iii) disappearance unexplained or inventory shortage misfiling or misplacing of information shorta
materials or shortage due to clerical or accounting error
d) i) coastal or river erosion

ii) normal settlement or bedding down of new structures
2) Damage caused by or arising from :-
a) any willful act or willful negligence on the part of the Insured or any person acting on his behal
b) cessation of work delay or loss of market or any other consequential or indirect loss of any kin
whatsoever
3) Damage occasioned directly or indirectly by or through or in consequence of any of the followi
a) war invasion act of foreign enemy hostilities or warlike operations (whether war be declared or
b) mutiny civil commotion assuming the proportions of or amounting to a popular rising military ri
revolution military or usurped power
4) i) permanent or temporary dispossession resulting from nationalisation commandeering or req
constituted authority
ii) permanent or temporary dispossession of any building resulting from the unlawful occupation o
person iii) the destruction of property by order of any public authority
5) Damage directly or indirectly caused by or arising from or in consequence of or contributed co

a) nuclear weapons material b) ionising radiations or contamination by radioactivity from any nuc
nuclear waste from the combustion of nuclear fuel.
16 EXCLUDED PROPERTY
1) Money cheques stamps bonds credit cards securities of any description jewellery precious sto
bullion furs curiosities rare books or works of art unless specifically mentioned as insured by this
2) Unless specifically mentioned as insured by this Policy goods held in trust or on commission d
business books computer systems records patterns models moulds plans designs explosives
3) a) vehicles licensed for road use (including accessories thereon) caravans trailers railway loco
watercraft aircraft spacecraft or the like
b) property in transit other than within the premises specified in the Schedule
c) property or structures in course of demolition construction or erection and materials or supplie
d) land (including top-soil back-fill drainage or culverts) driveways pavements roads runways rail
canals rigs wells pipelines tunnels bridges docks piers jetties excavations wharves mining proper
property unless specifically covered.
e) livestock growing crops or trees f) property damaged as a result of its undergoing any process
g) property undergoing alteration repair testing installation or servicing including materials and su
attributable to the operations of work being performed thereon unless Damage by a cause not ot
and then the Insurer will be liable only for such ensuing loss
h) property more specifically insured i) property insured if removed to any building or place othe
stated to be insured, except machinery and equipements temporarily removed for repairs, cleani
similar purpose for a period not exceeding 60 days.
j) damage to property which at the time of the happening of such damage is insured by or would
policy be insured by any marine policy or policies except in respect of any excess beyond the am
been payable under the marine policy or policies had this insurance not been effected.
17 In Material Damage - All Fire Conditions applicable, In Business Interruption - LOP Clauses appl
Uninsured Working Expenses
The following variable expenses of the business are not covered by this policy :
A. turnover and purchase taxes
B. purchases (less discounts received)
C. carriage, packing and freight.
18
Section II: Business Interrupation (Fire and all perils) - 10 % Discount, Business Interruption
19 Discount on Tariff rates
Package Discount: Without MLOP - 20%, With MLOP - 30%
20
Claims experience discount starts after completion of 2 years and for claims ration below 30% - R
and progressed upto 25% after completion of 6 years
21
TERRORISM
1 Add on Cover
2 Rates & Terms decided by Terrorism pool Committee after consultation with IRDA
3 From 01st Apr 2017 - Terrorism Pool Capacity per location from INR 1500 Crores to INR 2000 C
for ALOP under project insurance policies is still Rs. 750 Crores per location and combined limit
4 Damage is INR 2000 Crores
Excess: a) Shops & Residential Risks - 1% of Claim amount subject to Min. of Rs.10,000/ and M
and every claim b) Non Industrial Risks - 1% of Claim amount subject to Min. of Rs.25,000/- and
and every claim c) Industrial - 5% of Claim amount subject to Min. of Rs.10,00,000/ and Max. 25
every claim
5
6 Single Even: Loss arising during a period of 72 consecutive hours
7 No Reinsurer provide cover or benefit or claim for Terrorism
ENGINEERING INSURANCE
I. PROJECT INSURANCE or CONSTRUCTION PHASE or TIME POLICIES or ALL RISKS or N

• 1. Contractor’s All Risk(CAR),
• 2.Erection All Risk (EAR) also known as Storage cum Erection (SCE),
1 • 3. Marine-Cum-Erection(MCE),
• 4. Contractor’s Plant & Machinery(CPM),
• 5. Advance Loss of Profit (ALOP) or Delay in Start up (DSU).
INSTALLED MACHINERY or OPERATIONAL PHASE or ANNUAL POLICIES

• 1.Machinery insurance (MI) or Machinery Breakdown (MB) Insurance,
• 2. Boiler & pressure plant (BPP),
• 3. Electronic equipment insurance (EEI),
2 • 4. Deterioration of stock(other than potatoes)-DOS(OTP),
• 5. Deterioration of stock (potatoes)-DOS(P),
• 6. Machinery loss of profit (MLOP).
• 7. Civil Engineering Completed Risks Insurance (CECR)
CONTRACTORS ALL RISK INSURANCE

The policy is designed to protect the interest of contractors and principals in respect of Civil Engi
1 buildings, bridges, tunnels, residences, factories, warehouses, roads, canals, dams, hospitals, sc
This applies to all Risks located in India, for which the value of the Civil Works involved is more t
2 contract value.
Sum of insurance stated in the schedule shall not be less than the completely erected value of th
freights, custom duty, erection cost. Sums Insured on the following items are to be taken into ac
Sum Insured for CAR Insurance –
a) Marine (Imports)- Landed cost at site
b) Marine (Indigenous)- Landed cost at site
3 c) Cost of Construction
d) Permanent Civil Engineering Works
e) Half the escalated value, if escalation is opted for.
f) Preoperative expenses
GENERAL EXCLUSIONS: 1) War perils 2) nuclear perils 3) wilful act or wilful negligence 4) Cess
4
partial or total
PERIOD OF COVER: the time of commencement of work after the unloading of the property spe
any conveyance at the site specified in the schedule. a) expire on the date specified in the sched
5 Company‟s liability expires also for parts of the insured contract works taken over or put into serv
to the expiry date specified in the policy whichever shall be earlier.
The Company shall not in any case be liable for loss, damage or liability of which no notice has b
6 Company within 14 days of its occurrence
Upon notification being given to the Company under this condition the Insured may carry out the
7 any minor damage not exceeding Rs. 2,500/-.
This insurance may be terminated at the request of the Insured at any time in which case the Ins
appropriate premium amount subject to the following conditions -
i) Claims experience under the policy as on date of cancellation should be less than 60 % of rew
ii) „The unexpired period is not less than 3 months or 25 % of the policy period whichever is less
8 iii) Testing period should not have commenced.
This insurance may also at any time be terminated at the option of the Company by 15 days noti
given to the Insured in which case the Companies shall be liable to repay on demand a rateable
for the unexpired term from the date of cancellation.
9 Packing materials of anykind is not payable

Marine/Transit Risks: The loss due to breakage of glass can, however, be covered by payment o
follows -
10 i) CAR rates so worked out as per tariff provisions should be loaded by 25 %
ii) Excess on glass items shall be 10 % of aggregate sum insured of all glass items
EXCLUSIONS to SECTION I
The Company, shall not, however, be liable for –
a) the first amount of the loss arising out of each and every occurrence shown as Excess in the S
b) loss discovered only at the time of taking an inventory;
c) normal wear and tear, gradual deterioration due to atmospheric conditions or lack of use or ob
rust, scratching of painted or polished surfaces
d) loss or damage due to faulty design;
e) the cost of replacement, repair or rectification of defective material and/or workmanship, but th
limited to the items immediately affected and shall not be deemed to exclude loss of or damage t
resulting from an accident due to such defective material and/ or workmanship;
f) the cost necessary for rectification or correction of any error during construction unless resultin
11 damage;
g) loss of or damage to files, drawings, accounts, bills, currency, stamps, deeds, evidence of deb
cheques, packing materials such as cases, boxes, crates;
h) any damage or penalties on account of the Insured's non-fulfillment of the terms of delivery or
Contract of construction or of any obligations assumed there under or lack of performance includ
any kind or description or for any aesthetic defects or operational deficiencies;
i) loss of or damage to vehicles licensed for general road use or water borne vessels or Machine
operated or fixed on floating vessels/craft/barges or aircraft.
Premium adjustment can be done - at completion of the construction on the basis of actual value
insured in respect of freight and handling charges, customs dues and construction cost. Any incr
12
Prime cost of materials shall NOT to be the subject matter of premium adjustment
REINSTATEMENT OF SUM INSURED in event of loss: to pay a pro-rata additional premium on
13 claim for the loss or damage from the date of such loss to the expiry of the period of Insurance. (
THIRD PARTY LIABILITY is not allowed and Maximum 1 Crore for project)
BASIS OF LOSS SETTLEMENT: partial loss/Repairs: cost of repairs - salvage, total loss - the ac
14 immediately before the occurrence of the loss less salvage (alterations,additions,Improvements a
If repair cost exceeds the SI of item, settled on the basis of total loss
EXTENSION OF COVER –
15 Any extra charges incurred for overtime, work on holidays, express freight (excluding air freight)
insurance unless agreed upon at an additional premium to be prescribed by the Company.
CONSTRUCTION PLANT AND MACHINERY –
16 Loss of or damage to Construction Plant and Machinery excludes loss or damage directly cause
its own mechanical or electrical breakdown or derangement.
SURROUNDING PROPERTY –
Loss of or damage to property located on or adjacent to the site and belonging to or held in care
Principal (s) or the Contractor(s) shall only be covered if occurring directly due to the construction
17 under Section I and happening during the period of cover, and provided that a separate Sum the
the Schedule under Section I, for Principal‟s surrounding specified property. This cover does not
construction/erection machinery, plants and equipment.
MAJOR PERILS/AOG Perils –

The major peril/Acts of God claims shall mean claims arising out of –
a) Earthquake - Fire & Shock
b) Landslide/Rockslide/Subsidence
18 c) Flood/Inundation
d) Storm/Tempest/Hurricane/Typhoon/Cyclone/Lightning or other atmospheric disturbances.
e) Collapse
f) Water damage for „wet‟ risks i.e. contract involving works in rivers, canals, lakes or sea.
SECTION II: THIRD PARTY LIABILITY -

19 Third party liability (TPL) cover cannot be granted during extended maintenance. f) Insured Em
employees and their members are not covered.
Notes – 1. When Culverts and Road Bridges costs exceeds 20% of the Contract values (Roads)
20 under Culverts and Canals‟ (not involving works in water).
2. Where the tunnel value exceeds 10% of the contract values (Roads), they have to covered un
21 All SUB-CONTRACTS FORMING PART OF A PROJECT - Sub-Contracts are subject of these G

STORAGE RATE AT FABRICATORS PREMISES/WORKSHOP:
This is an extension to CAR Policy and can be covered.
22 Storage Rate – Re. 0.30 per mille per annum or part thereof
Excess Rs. 1500 each claim.
ADDITIONAL RATES FOR EARTHQUAKE (FIRE & SHOCK) PERILS - (For Zone I-1.00%, Zon
23 Nil, per annum) – It is optional, can’t be covered in Mid term. - volume discount applicable on EQ
Volume Discounts applicable on Starting SI not on Mid term increase (Above 100 Crores/50 Cror
24 for SI above 100 Crores - Only Claim Experience discount is allowed on Extension of the policy M
Add on covers: 1)STORAGE RATE AT FABRICATORS PREMISES/WORKSHOP, Earthquake,
CLEARANCE And REMOVAL OF DEBRIS, THIRD PARTY LIABILITY COVER. SURROUNDING
INSURED , Escalation, Additional Customs Duty (the cover for Additional Custom Duty will be on
25 specific limit for Additional Custom Duty-either in percentage or in amount - has to be selected by
inception of the Policy and can be reinstated in the event of loss), CPM Sum Insured, Maintenan
Maintenance Visit Cover.
26 CONSTRUCTION MACHINERY PLANTS AND EQUIPMENTS - 5% of CAR Sum Insured subjec
27 Above 1500 Crores references has to made to TAC
Extension of Projects (A discount/loading is applicable on Claim Ratio)
28 In case deletion of Maintenance Visits/Extended Maintenance Cover availed at the inception of C

attachment of the risk, refund of premium may be given by retaining 25 % of the premium under
risk is attached no refund shall be allowed for deletion of Maintenance Visits/ Extended Maintena
29 There is NO Testing in CAR Policies (i.e. Difference between CAR & EAR/SCE),
The Insurers shall not indemnify the Insured in respect of loss or damage caused by, or arising o
30 deviations from the contract works time schedule exceeding FOUR weeks,
31 In SCE SI - Preoperative expenses are not considered

IN Car Minimum 3 months rate and additional rate beyond month will be there
EAR Rate first two months of the project period (first month plus one month‟s testing),
in SCE - Earthquake cover can be given on First Loss Basis
SCE - The excess should apply on the net claim amount after adjusting for Salvage, depreciation
If Fire PROTECTION Rules complied - 2.5% of discount can be offered on EAR Rate
Materials and equipments stored in buildings (sheds) or in open area shall be divided into sub-un
shall not exceed 10% of the sum insured or Rs. 50 Crores whichever is less.
ances is known as Fire. (The Important
e: Heat, Fuel and an Oxidizing agent (Usually
Terms and conditions are defined as Erstwhile
s if any can be issued.

Strike, Malicious Damage (RSMD) perils at
he Committee for Rating. Provisional rate of Rs.
es higher than those given under the tariff.

e of Curious, Works of Art, Manuscripts, Obsolete
and found acceptable by the insurer.
Sec.III.
al rate is charged.
al rate is charged. (6m - 70%)
d.
ls. However, it can be taken but the risk will start
chinery such as Boiler. (Plinth , foundations can
yments
us policies for different periods of insurance to
ithstanding the above, different policies may be
es
uilding. Notwithstanding this, the plinth and
ue a policy covering only specified machinery
me block/ building.
erent ownership, it is permissible for each owner
/or machinery therein. In such cases, the
4.0%. (Temporary Sheds for Monsoon protection
Premium in Short period scale
sured throughout the period of the policy in return

%, 50% of the full rate, to be charged on the
Accessories only and will not apply to policies
on of Average is still applicable after considering
ured - Specified locations only covered - highest
re covered under floater policy, no floater extra is

ater Policy and the rate for the process block is
y. - Presence of Kutcha construction may be
crore and atleast at one location sum insured

any circumstances
required for a short period b) Stocks undergoing
n previous to the loss is less than the amount

n recoverable by the insured shall be reduced in
t that ought to have been declared.
ore and the minimum retention shall be 80% of
g 15%. Previous experience is not available

(Previous 3 years means excluding current
VI & VII - Not applicable on Floater & Floater

The installation is maintained in an efficient
h an external agency is in force.
ed out continuously for 30 days or more.
or silent risk rate of Re. 0.60%0 whichever is
d is opted for voluntary deductible. i.e. SFSP &
ERED BLOCK (–) REDUCTION IN RATES FOR

OR KUTCHA CONSTRUCTION (LESS OR ADD)
OUNT FOR VOLUNTARY DEDUCTIBLE
G, EXPLOSION/IMPLOSION, AIRCRAFT
ALLIED PERILS (STFI), IMPACT DAMAGE,
AND/OR OVERFLOWING OF WATER TANKS
OF AUTMATIC SPRINKLER INSTALLATIONS,
ctual burning is NOT considered FIRE. Damage
ered as fire. Fire Damage to logs of wood which
olicy.
combustion ii) It is undergoing any heating or
ority
ayable i) smoke and heat ii) Scorching iii) Falling

in the discharge of their duties vi) Damages
Blowing of property to prevent spreading of fire
sure to weather
re results or not
sound, Implosion: Bursting Inward or collapse
n machinery, rupturing, shattering, cracking
only Domestic Boilers) - Other Boillers have to
erial or space devices (baloons, rockets, artificial

SURE WAVES ( Supersonic speed means above
ruption or cessation of any process or operations
stituted Authority or loss results from unlawful

lic peace)
yphoon, tempest, Hurricane, Tornade, Flood or

ption or other convulsions of nature. (Wherever
onvulsions of nature is covered and same
d to the Insured property due to impact by any

y a) Insured or any occupier of the premises or b)
g OWN Rail/Road Vehicles and articles dropped
s payable excluding a) Normal cracking,

ent of made up group c) coastal or river erosion
lition, construction, structural alterations or repair
ursting includes 'breaking apart' of water tanks,

acity and OVERFLOWING means the escape of
agencies
ss or destruction damage caused by a) repairs

of the Sprinkler Installation c) Defects in
E. (Accdiental burning of vegetation, grass etc.)
s - i.e. NIL Excess) Excess is applicable on bais
0,000
.25,000
Rs.5,00,000 (five lakhs)
Rs.25,00,000 (Twenty five lakhs)
Rs.50,00,000 (Ffity lakhs)
tion EXCLUDING a) Pollution or contamnation

amination
orks of Art an amount exceeding Rs10,000,
System records, Explosives etc unless
change of temparature
pparatus, fixture or fitting arising from or
elf heating or leakage of electricity whatever
re excluded but resulting fire damage to other
and Removal of Debris - Removal of debris

ping (1% of Claim amount). It excludes
(In Building &/ Machinery - Dismantling or
ion of any process or operation caused by any of
nature
ct lossess
her than insured premisess (Except machinery
ption or non-disclosure of any material particulars

or any any building there of
on of insured peril) , the company may agree to

dorsement of the policy
ange of trade or manufacture or nature of
ble interest except by will or operation of law
ed under Fire Policy, Fire policy covers excess
eriod scale. Insurer Option: 15 days notice + pro-

s, submission of claim Forms + other details
ot followed in practise), Compliance policy terms
xpiry of twelve months from the date of loss.

and deal with it as may be necessary and sell
range salvage affected property. Non Co-
red. (If insured withdraws claim in writing, Insured
duelnt, the claim is supported by a false

ment, replace or payment to the insured
e policy is less than value of the property on the
olicy covers more than one item of property each
e policy is less than value of the property on the

olicy covers
ntum, more than
Sole arbitrator one
is to beitem of property
appointed each
in writing
0 days of any party invoking arbitration the same
m Insurer and these two arbitrator will appoint
on)
ns must be written or printed

he currency of the policy. Upon settlement of
able the insured and same will be reduced from
SI shall stand reduced by the amount of loss)
emium. A) ARCHITECTS, SURVEYORS AND
ORATION OF STOCKS D) FOREST FIRE E)
S OR EXTENSION H) EARTHQUAKE (FIRE &
CONTIMATION COVER K) TEMPORARY
RANCE OF ADDITIONAL EXPENSES OF RENT
fFirst Loss basis) P) TERRORISM COVER.
rated 'per se'.

sured's premises are held covered
lishing and/or varnishing in furniture shops,
ps dealing in goods otherwise not provided', a
) - Minimum 3 Years - Maximum - No Restriction

count 10 yrs and above - 50%, No Refund for
ance. Instead of discount Insured can opt 10%
ND is allowed on Midterm cancellation as per
fes & Hotels, Shops (Non Hazardous), Shops

r other utilities at the above occupancies shall
atic sprinkler installation with its own independent
tallation shall be allowed 5% reduction on the
pirit/crackers/matches
nt products are manufactured in the same

detached.. Auxiliaries/miscellaneous
etc. in such cases shall carry highest rate of all
ain process if such operations are carried out
se”
ufacturing Risks
facturing Risks
e of materials
charging and like which do not materially alter
charging and like which do not materially alter
list of hazardous goods booklet) not exceeding
when the risk is rated under materials stored in

f Industrial/Manufacturing Risks)
verall.
wer House etc. shall be rated at par with the rate
Value on which
premium has to be
charged
Specified sum
insured not
exceeding 7.5% of
claim amount
Specified sum
insured upto
maximum 10% of
sum insured
Sum insured of stocks
Sum insured of
stocks
Specified sum insured
Policy Sum insured
Sum insured of
relative commodity
5% of sum insured
of BMA
Policy sum Insured
e covered by charging a
Value of stocks in
specified blocks
M/A value in
specified blocks.
Specified
sum
insured
Policy sum insured
Specified sum insured
Specified sum
insured
Specified sum
insured
efund of premium shall be made on the add-on

ously or replaced by a fresh insurance including
age rate in case of multiple products
3% of the claim amount) - Maximum 7.5% of
ured’s claim or estimate of loss in the event of
the superintendence of the reinstatement for the
% of Total SUM INSURED

wer failure consequent to damage at the
perature arising out of loss or damage to the cold

ed peril.
failure exceeds 24 hours.
of the Government, Municipal or Local Authority
or protecting any part of the supply
er to withhold or restrict or ration supply
ty insured directly caused by burning, whether
ds by Fire
period is less than 30%, a 50% discount on the
way that the loss experience for policy period

imum rate of Rs.15%o
nes, Stackers and the like and articles dropped
e. stocks
or Building, Plant, Machinery, FFF NOT for
5% of the Sum Insured by each item, in respect
nsured/included during the currency of the policy

paid on pro rata basis from the date of
ted.
e expiry of the policy, there shall be no refund of
e entire property in one complex / compound /

m Insured for this extension is identical to the
ue of the plinth and foundations of the
clude spoilage risk subject the following

and ii) Damage to Machinery, containers and
provided by a separate item of the SFSP Policy
same as those covered under the policy
in specified blocks, specified sums being
of a) Accidental leakage and contamination or b)
dependent agency for quality / purity,

mpty of stocks, required fresh certificate of
Rs. 60,000/- each loss.

ck insured hereby not exceeding 10% of the total
her premises for purposes of fabrication or
Rs. 60,000/- each loss.

ed
ATIVE ACCOMMODATION: Additional expenses
risks may be covered
Loss (Fire) Policy.
uction.
esently occupied. However, no restriction will
he alternative accommodation is taken in the
rther, in respect of the Owner-Occupant, the

occupation
lding and contents. Ii) the tenant to insure the
onably incurred by the insured consequent upon
rations, process, insurable interest is not
ing on all parties
e designation under which the property has been
hinery & FFF (not for stocks)
y Insured to Insurer
ended to cover additional cost of reinstatement

thority by incorporating the following clause in
A, B, C & D. The highest rate is charged for
nt can be given.
h 100%.
uch Fire Extinguisher Appliances Discount
ore at one location for property insurance,

Risks.
n-process, raw material etc.

Insurance Clause will not be applicable.
y the insured and completed within 12 months

wed by the insurer,
policies(both failing which
manufacturing andthe loss will be
storage
The
of thepolicy
sum provides
insured. cover for 1) FIRE AND
d is opted for voluntary deductible.

rruption of project by an insured perils.
er can fix his liability in the case of major loss at a
hat extent of amount of claim settled.

y and Furnitures , Fixtures & fittings is based on
ro-rata average - excess
icable for Fire Insurance Business
ased properties only. (Situation Risks only)

e of will or operation of law is automatic)
ntract, Perils covered and Limitations of the Sum
oss of Profits (LOP)

nding Charges, ICOW (Increased cost of
ed perils
anding charges))
stoppped
maintain the business
eceivables
siness transacted
er
hinery etc in case of loss occurred). Can't be
Gross Profit
ty period * Annual Gross Profit / 12
mount of the Insured Standing Charges
nder SFSPerils Policy of AIFT
er the standard terms and conditions or at rates
he Tariff Advisory Committee (TAC)
m or percentage regardless of actual loss
t permitted e.g. issue of a policy covering
not allowed
ily be covered under CLOP
by the fire Material Damage Policy at an
cover, the specific exclusion must be attached to
pse of steam boilers.

ct of – a) Depreciation of Stock b) Bad debts
ay the fees of any person employed by an insured
ty under property damage is admitted

mated Gross Profit
allowed for difference of EGP - AGP, Maximum
eriod should be more than 12 months. Insured
s from expiry of policy (Same applicable for
ater supply: Maximum Indemnity 60 days,

er for damage to the jackwells of public water
and an equitable allowance made if any shortage

ng temporarily maintained from accumulated
s
ed under this extension
emises and should not be extended to cover
iers - 150% Loading
customers, customers premises located abroad &
ariff only: (i.e. 7 days of Standard Output /
um insured, period of indemnity, period of
d relative sum insured, e.g. Gross profit, wages

lity for any loss
he date of the damage
19 - Jun 2019 is Indemnity period i.e. loss
taken into account when arriving at the rate of

ious year periods will be taken for calculation for
ings
ts, the independent trading results of which are
OVER & ICOW of GROSS Profit shall apply
produced by applying the rate of gross profit for

to the relative Annual Turnover thereof, the
IN RESPECT OF REDUCTION IN TURNOVER
expenses will be reducted
ofit
receiver or permanently discontinued
debts owing to destruction of records,third party

of PD & BI
teration in addition/deletion of blocks, No on

hs from the date of payment, Policy and schedule
reinstatement
nity period (Separate for Continuous process,

e
ual method c) Period basis or Pro-rata basis d)

over provision ii) option to consolidate
disputes act 1947
other documentary evidence to support his claim
d it related to Quantity of commodity)
rading, Gross profit has basis will be Date of
ubs, hotels, private schools etc. (Gross Revenue

e of business)
yable to the insured for services rendered)
cess of 35% of Total Sum Insured

x exceeds 50 crores
e vapour as determined by means of Abel/Pensky
wise specified.
b) Electrical installation - To comply the rules laid
e capacity exceeding 30,000 K Litres

Class B - Flash Point above 23-65 degrees of C,
s D above 93oC
cy)
e covered. Minimum SI is 100 Crores (IRDA Has
Boiler Explosion, Electronic equipment,

ptional
ndatory
t value (Declaration of stocks is not applicable in
ce can be waived
ort of the Engineer b) deductibles opted by
unt subject to minimum of 5 lakhs, for Loss of
% discount, 20 L - 20% discount, 25 L - 25%
c, 14D GP -Min. 15 L - 10% discount, 21D GP -

Min. 30L - 25% discount
providing additional Sum Insured where
i. Agreed Bank Clause

any Engineer for each location together with
ii. Architects', Surveyors' and Consulting Engineers' Fees Clause

Storage details c) Operations d) Maintenance
eeping j) Probable Maximum Loss k) Age of the
Claims Experience for all covers/perils.
Profit detailed inspection o) Overall
iii. Designation of Property Clause
nt defect gradual deterioration deformation or

y or fuel systems or failure of the effluent
iv. Escalation clause
wet or dry rot fungus shrinkage evaporation loss

action of light vermin insects marring or
g of information shortage in supply or delivery of

v. Omission to Insure Additions, Alterations or Extensions Claus
vi. Temporary Removal of Stocks Clause
son acting on his behalf

indirect loss of any kind or description
ce of any of the following occurrences, namely:-

her war be declared or not) civil war
popular rising military rising insurrection rebellion
commandeering or requisition by any lawfully
e unlawful occupation of such building by any
ce of or contributed confiscation to by :-
ioactivity from any nuclear fuel or from any
n jewellery precious stones precious metals

ned as insured by this policy.
ust or on commission documents manuscripts
designs explosives
ans trailers railway locomotives or rolling stock
ule
nd materials or supplies in connection therewith
nts roads runways railway lines dams reservoirs
wharves mining property underground off-shore
ndergoing any process

uding materials and supplies therefore if directly
mage by a cause not otherwise excluded ensues
y building or place other than in which it is herein

oved for repairs, cleaning, renovation or other
is insured by or would for the existence of this

excess beyond the amount which would have
een effected.
on - LOP Clauses applicable
olicy :
Business Interruption (MBD/Boiler/EEI) - 20%
ms ration below 30% - Ranges from 5% initially
h IRDA
0 Crores to INR 2000 Crores
on and combined limited of ALOP and Material
n. of Rs.10,000/ and Max. of 500,000- for each

Min. of Rs.25,000/- and Max. 10,00,000/- for each
10,00,000/ and Max. 25,00,000- for each and
ES or ALL RISKS or NAMED EXCLUSIONS
CIES
in respect of Civil Engineering Projects, like

als, dams, hospitals, schools etc etc
orks involved is more than 50 % of the total
tely erected value of the property inclusive of

are to be taken into account for arriving at total
lful negligence 4) Cessation of work whether

ing of the property specified in the schedule from
e specified in the schedule. However, the
en over or put into service by the Principal prior
f which no notice has been received by the
ured may carry out the repair or replacement of
e in which case the Insurers will refund
less than 60 % of reworked premium.

eriod whichever is less‟.
mpany by 15 days notice to that effect being

on demand a rateable proportion of the premium
covered by payment of additional premium as
%
ass items
own as Excess in the Schedule;
ns or lack of use or obsolescence or otherwise,
or workmanship, but this exclusion shall be

de loss of or damage to correctly executed items
nship;
truction unless resulting in physical loss or
deeds, evidence of debt, notes, securities,
he terms of delivery or completion under his

k of performance including consequential loss of
cies;
ne vessels or Machinery/Equipment mounted or
he basis of actual values to be declared by the

struction cost. Any increase or decrease in the
djustment
additional premium on the full amount of each
e period of Insurance. (REINSTATEMENT of
)
vage, total loss - the actual value of the property

ditions,Improvements are not recoverable)
(excluding air freight) are not covered by this

by the Company.
damage directly caused by its own explosion or
nging to or held in care custody or control of the

due to the construction of the items insured
at a separate Sum therefore has been entered in
y. This cover does not apply to
eric disturbances.
ls, lakes or sea.
nance. f) Insured Employees or Contract
ontract values (Roads), the have to covered
ey have to covered under TUNNELS
are subject of these General Regulations.
For Zone I-1.00%, Zone II-0.50%, Zone III & IV –

count applicable on EQ Rates also.
ove 100 Crores/50 Crores)
xtension of the policy Maximum 20%

KSHOP, Earthquake,
VER. SURROUNDING PROPERTY OF THE
Custom Duty will be on First Loss Basis, b) The
- has to be selected by the Insured at the
um Insured, Maintenance, Extended
R Sum Insured subject to Maximum of 25 Lakhs
ed at the inception of CAR policies before

of the premium under this extension. In case the
its/ Extended Maintenance Cover
SCE),
caused by, or arising out of, or aggravated by
,
here
h‟s testing),
r Salvage, depreciation and under insurance.

n EAR Rate
be divided into sub-units with the value, which
ss.
onsulting Engineers' Fees Clause
, Alterations or Extensions Clause

1
6
7
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
3
4
7
8
9
10
11
12
1
2
3
1
2
3
4
7
8
9
10
11
12
13
14
MOTOR TARIFF
GR 1: Insurance not provided for : Motor Insurance in India cannot be transacted outside the purview of the India Motor Tariff
specifically authorized by the TAC.
Motor Insurance includes Private Cars, Motorized Two Wheelers and Commercial Vehicles excluding vehicles running on rails
GR.2. Proposal Forms: Proposal Form as specified in Section 5 of the INDIA MOTOR TARIFF is required to be submitted by the in
to the insurer before the commencement of cover and at renewal in case of material alteration (IDV change mere declaration i
enough and Change of Insurer is Proposal is mandatory)
GR.3. Policy Forms:

Policies insuring Motor Vehicles are to be issued only as per the Standard Form(s) given in Section 6 of the INDIA MOTOR TARIF
(Policy types Liability and package policies)
GR.4. Extension of Geographical Area

The Geographical Area of Motor Policies may be extended to include
a) Bangladesh
b) Bhutan
c) Nepal
d) Pakistan
e) Sri Lanka
f) Maldives (Package 500, Liab Rs.100 Premium per annum including shrot period)
exclude cover for damage to the vehicle/ injury to its occupants/ TP liability in respect of the vehicle during air passage/ sea vo
the purpose of ferrying the vehicle to the extended Geographical Area
GR.5. Vintage Cars
Any car manufactured prior to 31-12-1940 and duly certified by the Vintage and Classic Car Club of India
GR.6. Classic Cars

Any car manufactured after 31-12-1940, but before 31-12-1970, is considered as a Classic Car by the Vintage and Classic Car Cl
India
GR.7. Valued Policies - Valued Polcies can be issued to Vintage Cars. (No deduction in claim amount)
GR.8. Insured‟s Declared Value (IDV): The IDV of the vehicle is to be fixed on the basis of manufacturer‟s listed selling price of
brand and model - Depreciation + Accessories which is not included in Invoice.
TL/CTL ; Total Loss / Construction Total Loss: aggregate cost of retrieval and / or repair of the vehicle subject to terms and cond
the policy exceeds 75% of the IDV.
IDV of vehicles beyond 5 years of age and of obsolete models of the vehicles ( i.e. models which the manufacturers have discon
to manufacture) is to be determined on the basis of an understanding between the insurer and the insured. (Market value bas
GR.9. Depreciation on Parts for Partial Loss Claims: 1.

1. Rate of depreciation for all rubber nylon/ plastic parts, tyres and tubes, batteries and air bags - 50%
2 Rate of depreciation for all fibre glass components - 30%
3. Rate of depreciation for all parts made of glass - Nil
4. Rate of depreciation for all other parts including wooden parts is to be as per the following schedule
AGE OF THE VEHICLE % OF DEPRECIATION
Not exceeding 6 months Nil
Exceeding 6 months but not exceeding 1 year 5%
Exceeding 1 year but not exceeding 2 years 10%
Exceeding 2 years but not exceeding 3 years 15%
Exceeding 10 years 50%
GR.10. Geographical Zones (for rating purpose) : Private Cars/ Motorized Two Wheelers / Commercial Vehicles rateable under S
4.C.1 and C.4.
Zone A: Ahmedabad, Bangalore, Chennai, Hyderabad , Kolkata, Mumbai, New Delhi and Pune.
Zone B: Rest of India
Commercial Vehicles excluding vehicles rateable under Section 4. C.1 and C.4.
Zone A - Chennai, Delhi / New Delhi, Kolkata, Mumbai
Zone B - All other State Capitals
Zone C - Rest of India
GR 11: Period of Insurance only 12 months (Adjustment with other renewals only short period policies on prorata only)
GR.12. Premium Rates for Short Period Cover: N.B.: 1.Extension of short period covers/short period renewals, for any reason, c
granted only by charging the premium for such extensions at the above mentioned short period rates.
N.B.:2. Short period covers/short period renewals for Liability Only Policies are not permissible.
GR Display of Premium: Liability and Package should be shown separately with each cover with discount/loading and rounding
nearest rupee
Premium calculations as per the guidelines of tariff only
No Installments (Full premium to be received before commencement of cover
Minimum Premium Rs. 100 (Rs.25 for Specially designed vehcicles for Blind/Handicapped/mentally challenged persons)
Transfer: TP Automatically transfer
Package: Within 14 days has be apply with Insurer in recorded delivery along with policy copy, sale letter, fresh proposal
NCB to be recovered, transfer fee - 50 + applicable taxes i.e. GST
Change of Vehicle: A vehicle insured under a policy can be substituted by another vehicle of the same class for the balance per
the policy subject to adjustment of premium, if any, on pro-rata basis from the date of substitution. (If substitution is not total
proof of liability insurance for the old vehicle is mandatory)
Vehicle Insurance in the joint names (Insured & Financier/lesses/hypothecation) is prohibited - GR 19 to 21
GR 22 - Cover Note - Form 52 (In terms fo Section 142 of MV Act) to be issued - Validity 60 days
GR 23 - Cover Note - Form 51 (In terms fo Section 141 of MV Act) to be issued
GR 24 - Cancellation and Double Insurance
Insurer - 7 days notice - Refund premium in prorata
Insured - 7 days notice - refund of premium in short period scales
No Claims reported & Retention of Minimum premium as per tariff, Liability is insured elsewhere, Insured should inform RTO
Double Insurance: Later policy to be cancelled and refund is on pro-rata
If Earlier policy has to be cancelled, short period scales (i.e. retaining premium) is applicable - Claim is arised no refund of prem
both policies
Fresh Certification Charges Rs. 50 (Generally Change of vehicle number, engine number and chassis number) - old certificate ha
collected
Original Cover Note/Certificate of Insurance lost/torn/defaced - Duplicate Covernote/certificate can be issued by collecting Rs.
and specially endorsed on Cover Note/Certificate of Insurance as DUPLICATE
GR 27 - NCB - Applicable only on package policies NOT on Motor Trade Policies (Road Transit Risks / Road Risks / Internal Risks)
policies which cover only Fire and / or Theft Risks.
NCB on Fire &/ Theft applicable only on Renewal of Fire &/Theft policies
insured becomes entitled to NCB only at the renewal of a policy after the expiry of the full duration of 12 months (No Claim is
reported) - Maximum 50% ( Slabs 0,20,25,35,45,50)
Sunset clause - before 01st Jul 2002 - Maximum 55% and 65%
Laidup extension - Previous years NCB to be entered
NCB - Follows the fortune clause
NCB validity on renewal is 90 days. (Sale and obtained NCB - Validity 3 years)
Legal heir automatically transferred
for Previous Insurer has to write within 21 days (Previous Insurer has to confirm within 30 days)
Basing on Declaration, NCB can be allowed next slab (If declaration is wrong, OD Claim can be forfeited)
GR.28. Automobile Association Membership Discount - Valid membership of Automobile associatons (East, West, Sourth, Uppe
Uttar Pradesh)
discount @ 5% of the Own Damage premium, subject to a maximum of Rs.200/- for a Private Car and maximum of Rs.50/- for
Motorized Two Wheeler may be allowed
Policies covering Fire and/or Theft risks only are not eligible for the discount.
Automobile membership is allowed during currency of policy - can be given discount on pro-rata, Automobile membership is c
during middle of the policy - Recovery of the same in pro-rata
Automobile membership can be taken by i) Individual ii) Joint names iii) Companies
GR.29. Discount for Vintage Cars: 25% of OD Premium, 50% of TP Premium discount may be allowed
GR-30 Discount for Anti-Theft Devices: Vehicles (other than those covered under Motor Trade policies) fitted with anti-theft de
approved by Automobile Research Association of India (ARAI), Pune and whose installation is duly certified by any of the Autom
Associations mentioned in GR.28 above are eligible for a discount of 2.5% on the OD component of premium subject to a maxi
Rs. 500/-.
GR.31. Concession for Laid-Up Vehicles - No Cash refund, fees Rs. 15 a) POI Extended for Laid up period or b) Premium is adjus
subsequent renewal
Package Policy: Fire and/or Theft as applicable during the period of such lay-up
No Laid up for Trade Policies, Except when the permits for vehicles are temporarily withheld or suspended by the Government
GR.32. Prohibition of mid-term inclusion/cancellation of extra benefits
Mid-term inclusion/cancellation of extra benefits shall not be permitted more than once during the currency of a policy
GR.33. Concessions for Specially Designed / Modified Vehicles for the Blind, Handicapped and Mentally challenged persons - 5
OD Premium subject to duly endorsed in RC by RTA
GR.34. Registration, use and Insurance

It is not permissible to insure any vehicle in the name of an insured not conforming to the name recorded as owner of the vehi
the vehicle registration document, excepting
i) in case of temporary substitution ii) in respect of Motor Trade Risk, or
iii) as provided in General Regulation Hire Purchase, Lessee & Hypothecation
GR.35. Use of Vehicles within Insured‟s Premises / Sites
(i) Use confined to own premises (Any clause of vehicle)- Where a vehicle is to be used in the insured's own premises to which
public have no general right of access and provided the vehicle is not licensed by the authorities concerned for general road us
policy may be issued at the applicable Tariff rate with a discount of 33 1/3%.
No Certificate of Insurance or Cover Note which includes a Certification is permitted to be issued in such cases
(ii) Use confined to Sites (Applicable to Goods Carrying Vehicles).
GR.36. Personal Accident (PA) Cover under Motor Policy

(not applicable to vehicles covered under Section E, F and G of Tariff for Commercial Vehicles) - This provision deals with Person
Accident cover and only the registered owner in person is entitled to the compulsory cover where he/she holds an effective dri
license. Hence compulsory PA cover cannot be granted where a vehicle is owned by a company, a partnership firm or a similar
corporate. (More than one vehicle is there, to be covered in ONE vehicle only) - Now Sum Insured is Rs.15,00,000 (Separate po
CPA is available)
B. Optional Personal Accident Cover for persons other than Owner-Driver
The cover under this section is limited to maximum Capital Sum Insured (CSI) of Rs. 2 lacs. per person..
PA Cover can be named, unnamed persons/passengers, drivers, cleaners, conductors, hirer
GR.37. Cover for vehicles imported without customs duty - 30% of loading on OD only if IDV is not included the import/custom
Policies issued to cover imported vehicles belonging to Embassies , Consulates etc.
GR.38. Vehicles requisitioned by Government

Vehicles requisitioned by the Government are automatically held covered during the period of requisition without any addition
premium.
GR.39. Third Party Property Damage (TPPD) Cover - Statutory limit is Rs. 6000
However, the insured can at the inception of the policy, opt to restrict to the TPPD cover to the statutory limit of Rs. 6000/- as p
in the M. V. Act. In such an event, the base TP premium applicable (before any loading/ discount ) may be reduced by Rs. 200/-
150/-, Rs. 100/- and Rs. 50/- for Class 1, 2, 3 and 4 as above respectively
Mid term change of TPPD limits is not permitted
Compulsory Deductibles
The above Compulsory Deductibles are also to be applied where restricted covers as specified under Fire &/ Theft risks are gra
Exclusions under (a) of Endorsement IMT- 21 may be reinstated in cover by payment of additional premium @15% of the total
OD premium (before application of any discount) and Endorsement IMT-23 is to be used for such reinstatement of excluded co
IMT 21 is not applicable for Private Cars/Two Wheelers/Taxis - Applicable only for GCV, PCV above 6 passengers
GR.41. Electrical / Electronic fittings - not included in Manufacturing selling price - 4% to be charged
GR.42. Use of CNG / LPG fuel - Bio Fuel - 4% of such kit charged subject to endorsed in RC - TP Rs.60 to be charged
GR.43. Fibre glass fuel tanks

All policies covering vehicles fitted with fibre glass fuel tanks will attract an additional premium of Rs. 50/- in the Own Damage
excepting vehicles rateable under Class D of Commercial Vehicles Tariff where the additional premium will be Rs. 100/-.
GR. 44. Vehicles used for Driving Tuitions

Vehicles used by Driving Schools recognized by the RTA for giving tuition, having double clutches and double brakes with profe
tutor accompanying the trainee - OD - Appplicable Tariff + 60% Loading - TP Rate - Tariff only
For vehicles used for driving tuitions the words “other than for the purpose of driving tuitions” are to be added after the words
reward” in the Policy Schedule/ Certificate of Insurance concerning “LIMITATIONS AS TO USE
GR. 45A Restricted cover for Fire and / or Theft Risks
(Only while the vehicle is in garage and not in use) - Applicable other than Misc & Spl type of vehicles (Class D) and all Trade
Rate Fire - 0.50% of IDV, Theft - 0.50% of IDV, Fire & Theft - 0.75% of IDV for OD
additional premium for Electronic,Electrical, Accessories, CNG/LPG Kits, CPA is applicable (Discount for Voluntary deductible is
applicable)
GR. 45B Restricted cover for Fire and / or Theft Risks
- Applicable other than Misc & Spl type of vehicles (Class D) and all Trade risks
Rate Fire - 25% of IDV, Theft - 30% of IDV, Fire & Theft -50% of IDV for OD
additional premium for Electronic,Electrical, Accessories, CNG/LPG Kits, CPA is applicable (Discount for Voluntary deductible is
applicable)
NCB, Automobile association discount is applicable
GR. 46. Vehicles driven by non-conventional source of power.

For rating of vehicles driven solely by any non-conventional source of power, like battery etc., and permitted by RTA s, referenc
be made to TAC. (Tariff amened in 2017 and guidelines is provided) - In 2015-16, E-Carts and E-Rickshaws ( Commercial Use )
category and rates are prescribed by IRDA in tune with MV Act Amendment 2015 for E-Vehicles
GR 48 - Submissionof StatisticsTAC under provisions of Section 64 UE of Insurance Act 1938 extensive statistical codes as provid
GR 49 - Interpretation authority - TAC - Binding on all
The limit under TPPD is in respect of any one claim or series of claims arising out of one event / occurrence.
SECTION II - Tariff for Private Cars

Applicability :(a) Private Car Type Vehicles (b) Motorized three wheeled vehicles (including motorized rickshaws / cabin body s
used for private purposes only)
Coverages:used for social, domestic and pleasure purposes and also for professional purposes (excluding the carriage of goods
than samples) of the insured or used by the insured's employees
excluding use for hire or reward, racing, pace making, reliability trial, speed testing and use for any purpose in connection with
Motor Trade.
Motorized three wheeled vehicles - 750 CC to 1000 CC - to be rated on the basis of minimum cubic capacity of 1000 cc.
If CC is Lessthan 750 CC - to be rated as Private Cars with 50% discount on Own Damage premium only (The amount should be
than of two wheeler of same CC)
Motorized three wheeled vehicles - for Goods Carriage own or Hire - Goods carrying vehicle tariff applicable under Commeric
vehicles
Motorized three wheeled vehicles - for own or Hire Passenger - Passenger carrying vehicle tariff applicable under commercial
Private Car Rating depends on - IDV, Age of vehicle, CC, Geographical zones
Provided that a person driving holds an effective driving license at the time of the accident and is not disqualified from holding
obtaining such a license. (person holding an effective Learner‟s license may also drive the vehicle and that such a person satisfi
requirements of Rule 3 of the Central Motor Vehicles Rules, 1989.)
Minimum values - < 1000 cc -15000, 1000 - 1500 cc - 20000, above 1500cc - 30000
Voluntary Deductibles - Rs. 2500 - 20% of OD Discount subject to Max. of Rs.750
EXTENSIONS: LL to Driver/Owner
LL to employees - (Not exceeding the maximum licenced seating capacity)
Trailers: Trailers to be used with any vehicle rateable under this tariff can not be insured separately and the scope of cover on t
trailer(s) is to correspond to the cover for the towing vehicle. (Each trailer separate registration number and IDV to cover the sa
Floater for trailers can NOT be issued
If trailer attached excess for each and every claim is Rs. 5000 for entire policy
Rallies held in India: Policies may be extended to include use of the insured vehicle in a particular rally organized by any recogn
motoring organization on payment of the following additional premium
Premium for OD: Rs. 60/- for the first day and Rs. 30/- for each succeeding day of the rally
Premium for TP: Rs. 25/- for the first day and Rs. 15/- for each succeeding day of the rally
During the Rallies: does not cover either the driver and / or the passengers carried in the vehicle or the promoters of the event
does not apply to speed tests, dexterity trials, hill climbs or motor racing (whether organized separately or included in the cour
rally).
Rally extensions may be further extended to include motor racing, speed tests, dexterity trials, hill climbs or motor racing (whe
organized separately or included in the course of a rally) by charging a loading of 300% of both Own Damage and Liability Only
premiums at Short Period rates for the duration of the rally, but with the exclusion of any cover in respect of either the owner-d
driver and / or passengers carried in the vehicle or the promoters of the event
(iv) Reliability Trials Conducted in India by Manufacturers of Vehicles in India
If such trials are to be insured, reference is to be made to TAC with the appropriate details.
Legal liability of defense officials under Army/Navy/Airforce regulations for bodily injury/death caused to soldiers/sailors/airme
employed as drivers by them in their private capacity whilst driving the vehicle insured (including mounting into, dismounting f
traveling in the vehicle) may be covered at an additional premium of Rs 100/- provided the drivers hold effective driving license
TWO WHEELERS
Coverages:used for social, domestic and pleasure purposes and also for professional purposes (excluding the carriage of goods
than samples) of the insured or used by the insured's employees
excluding use for hire or reward, racing, pace making, reliability trial, speed testing and use for any purpose in connection with
Motor Trade.
Minimum values - < 150 cc -5000, 150 - 350 cc - 6000, above 3500cc - 7000
(iii) If a two wheeler is used with a side car attached, 25% discount may be allowed on the Own Damage premium arrived at aft
addition of premium if any, for electric/electronic items and for use of CNG/LPG fuel.
(iv) A three wheeler designed for operation by physically handicapped persons should be rated as a two wheeler with side car.
Loss of accessories, the property of the Insured , by Theft may be covered at an additional premium @ 3% of the value of the
accessories specifically declared by the proposer / insured in the proposal form (Subject to Min. of Rs.50 Premium)
LL to driver / Employees may be covered
Rest all same as Private Car
COMMERCIAL VEHICLES (CVT - Commercial Vehicle Tariff)

SCOPE
A. Tariff for Goods Carrying Vehicles
A.1 Public Carriers - other than three wheelers
A.2 Private Carriers - other than three wheelers
A.3 Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles. (Public Carriers )
A.4 Goods Carrying Motorized Three Wheelers and Motorized Pedal Cycles. (Private Carriers)
B. Tariff for Trailers
C. Tariff for Vehicles used for carrying Passengers for Hire or Reward
C.1 Tariff for four wheeled vehicles and three wheeled vehicles used for carrying passengers for hire or reward with carrying ca
not exceeding 6 passengers.
C.2 Tariff for four (or more) wheeled passenger carrying vehicles with carrying capacity exceeding 6 passengers and three whee
passenger carrying vehicles with carrying capacity exceeding 17 passengers for hire or reward.
C.3 Tariff for motorized three wheeled passenger carrying vehicles with carrying capacity exceeding 6 passengers but not excee
passengers for hire or reward.
C.4 Tariff for motorized two wheelers used for carrying passengers for hire or reward.
D. Tariff for Miscellaneous and Special Type of vehicles
E. Tariff for Motor Trade -- Road Transit Risks only
F. Tariff for Motor Trade -- Road Risks only
G. Tariff for Motor Trade -- Internal Risks only
Passenger Carry vehicles (Two Zones) - C1 to C4

Goods Carrying,all commercial vehicles (other than PCV) is Three Zones
Commercial Vehicles Rating depends on - IDV, Age of vehicle, GVW/Carrying Capacity, Geographical zones
VEHICLES DESIGNED AS COMMERCIAL VEHICLES AND USED FOR COMMERCIAL AND PRIVATE PURPOSES (EXCLUDING USE FOR
REWARD).
The appropriate rate under the CVT is to be charged with a loading of 25%. Policy Form for Commercial Vehicles with Endorsem
IMT- 34 is to be used. - If Commercial is Extended to PRIVATE PURPOSES 25% Loading
Public Passenger Service Vehicles in which space is provided for the carriage of goods in place of some of the seats, the basic ra
be that given under Class C for a normal bus of similar size without such goods carrying space
Provided, however, that the goods carrying space so created does not reduce the normal licensed seating capacity by more tha
If the limit of 20% is exceeded, the case is to be referred to the TAC for special rating
all PCV Vehicles has to covered for passenger upto permitted
LL for Non-fare paying passenger, passengers, employees (In accordance with WC Act i.e. As defined in WC Act)
Motor Trade policies can't covered Workmen as defined in WC Act
LL to Driver, Cleaner, Conductor
Geographic Area: India (In Trade Policies - OD Cover - within 160 kms of Insured Premisess)
(In Trade Certificates - within 80 kms of Insured Premisess - Can be extended to 120 kms with additional premium 15%
GVW above 12000 kgs - for every additional 100 kgs - Rs.27 is charged
Where more than one trailer is owned but not more than one trailer is towed at a time, the basis of rating is the basis of "1 tra
towed" and this must be applied to all trailers. The premium so calculated must be charged on all trailers owned by and/or in
possession of the insured
No concession for "Vehicles Laid Up" is permissible in respect of Trailers
C. TARIFF FOR VEHICLES USED FOR CARRYING PASSENGERS FOR HIRE OR REWARD
i. Tariff for taxis or Private Car Type Vehicles plying for public hire.
ii. Tariff for Private Taxis let out on private hire direct from the owner with or without meters and driven by the owner or an em
of the owner.
iii. Tariff for Private Car Type Vehicles let out on private hire and driven by the hirer or any driver with hirer‟s permission.
iv. Tariff for Private Car Type Vehicles owned by hotels and hired by them to their guests
Policies covering vehicles on hire and driven by the hirer or any driver with hirer‟s permission may be extended to cover theft a
conversion risks at an additional premium @ 1.5% on IDV
Legal Liability under Workmen‟s Compensation Act, in respect of the carriage of more than six employees (excluding the Drive
Goods Carrying Vehicles.
(b) Package Policy – Loss Damage or liability arising from negligence of owner or of his employee and of Hirer or Hirer‟s emplo
an additional premium of Rs.125/-.
Misc. & Special type of policies Overturning risk is covered additionally
TARIFF FOR MOTOR TRADE - ROAD TRANSIT RISKS ONLY (CLASS E)

either separate Policies or Declaration Policies
B. „Liability Only‟ premium

i) Distance not exceeding 2400Kms: Rs. 1055/-
ii) Distance exceeding 2400 Kms : Rs.1268/-
3. Additional rate for deletion of 50% Limitation Clause in respect of damage to tyres.
An additional premium of 1% of the basic OD premium subject to a minimum premium of Rs. 5/- per chassis/vehicle per trip sh
charged if the 50% limitation clause in respect of damage to tyres is to be deleted (With brand new vehicles with brand new ty
TARIFF FOR MOTOR TRADE - ROAD RISK ONLY (CLASS - F) - for demo purposes - unregistered vehicles
2. Policies may be issued to Motor Trade on a named Driver or Trade Certificate basis
All steam-driven vehicles are excluded
LOAN OR HIRE OF VEHICLES TO CUSTOMERS BY MOTOR DEALERS.

(a) Cars of Private car type
Cars of private car type let out by motor dealers on loan or hire to customers when their (customer's) vehicles are under repair
the same dealers may be insured under a private car policy (Standard Form) on a declaration basis at the following rates :-
Package Policy Cover may be provided at the rate of Rs. 12/- per car per day, for a period not exceeding 12 months, with a mini
premium of Rs. 330/-.
If "Liability Only" cover is required, it may be provided at the Rate of Re. 2/- per car per day, for a period not exceeding 12 mon
with a minimum premium of Rs. 175/-
Policies may be extended to cover driving for purposes of demonstration by persons not in the employ of the insured while
accompanied by the insured or an employee of the insured for an additional premium of 12% of----------.
d) Tuition - Driving Extension (Applicable only to Policies issued on the Named Driver Basis)
G. TARIFF FOR MOTOR TRADE - INTERNAL RISKS ONLY
(CLASS G)
Risks of Motor Manufacturers and Motor Assembly Factories and risks comprising solely Motor Body Builders and Petrol Filling
are not subject to this Tariff.
Rates applicable for superficial area occupied by the insured for the purpose of Motor Trade business not exceeding 2000 sq. m
(If 2000 sq meters above, additional premium is chargeable)
Premium for Package policies : - 0.28% on wages + Rs.150

Premium for Liability Only policies : 0.28% on wages
1. Showroom
Where premises are occupied as Showrooms only 50% of the above rates are to be charged.
2. Open-air Car Parks
Open-air Car parks adjoining but outside motor trader's premises as defined above may be covered but only 50% of the superfi
area of such car parks is to be used for premium calculation purposes.
Third Party Liability for loss of or damage to the motor vehicles or other property by Fire is not subject to the Motor Trade Inte
Risks Tariff and may not be added to a Policy there under
5. Work away from Premises.

Internal Risks Policies may be extended to cover the liability of the Insured arising out of work away from his own premises at a
additional premium of 0.065% on the total wages subject to a minimum additional premium of Rs. 50/-.
SECTION I - DAMAGE
Subject to the Limits of liability the Company will indemnify the insured against damage to any insured vehicle (including its
accessories whilst thereon) the property of the insured or any member of the insured's family or household caused by acciden
external and visible means and occurring in or on the premises.
under Section of Motor trade policies does not cover any TPL, STFI Perils, EQ Perils, RSMD, Fire and Explosion, Burglary , Theft
Long term Policies introduced by IRDA- Private Car - 3 years, Two wheelers - 5 years
Bundle Policies (1+3 for Private Car, 1+5 for Two Wheelers, 3+3 for Private Car, 5+5 for Two wheelers) Introduced
SAOD (Stand alone OD Cover) is introduced from 01-sep-2019
IRDA Mandated QR Code for all the policies issued on or after NOV 2016
New channel for selling of vehicles i.e. MISP (Motor Insurance Service Provider)
In TP Rates other than tariff items, following is added

Rates for Electric Private Cars or Two Wheelers
Rates for Quadricycle is added
District Commission upto One Crore - State Commission 1 Crore - 10 Crores - National Commission - above 10 Crores
District Commission to State Commission - Appeal - 45 days -
State Commission to Appeal National Commission - Appeal - 30 days
National Commission to Supreme Cout - Appeal within 30 days
Appeals Distrcit - HC - SC
MACT - 90 - 90
WC - 60 -60
Cons 30-30 - 30
vided under Section - 8 of this tariff
Consensus ad idem - Common Intention
ejusdem generis - Rules for construction of documents and words used therein - Of same kind
ØRes ipsa Loquiter: Things speak for itself
Volunti Non Fit Injuria: A person voluntarily is running the risk for his life. (Voluntarily consenting to run the risk)
Respondent Superior: Employer is liable for the acts of employees performed
Uberrimae fides - utmost goodfaith
Audi Alteram Partem - Hear the other side
Preponderanace of Probability - Standard proof required in Departmental enquiry
g to run the risk)
Fire
1 Actual ignition under accidental circumstances is known as Fire.
2 Fire business has been detariffed from 1st January, 2007. (for only Rates, Terms and conditions
3 Standard Fire and Special Perils Policy with the permitted “Add-on” covers if any can be issued.
Storm, Tempest, Flood and Inundation group of perils and/or Riot, Strike, Malicious Damage peri
can be excluded from the scope of the policy.
4
5 Any risk which has not been provided for in the Tariff shall be referred to the Committee for Ratin
2.50%0policies
Valued shall beare charged.
not issued in Fire, however it can be issued in the case of Curious, Works of
Machinery and the like subject to the valuation certificate being submitted and found acceptable
6
7 Minimum premium per policy is Rs.100-00 except for risks rateable under Sec.III.
8 Minimum premium for Tiny sector Industries is Rs. 50-00 per policy.
9 If the Policy is taken for a period not exceeding 15 days 10% of the annual rate is charged.
10 If the Policy is taken for a period not exceeding 1 month 15% of the annual rate is charged.
11 If the Policy is taken for exceeding 9 months, the full annual rate is charged.
12 Generally Midterm is not permissible to grant mid-term cover for STFI perils. However, it can be
after 15Insurance
13 Partial days fromisthe notdate of receipt
allowed in FireofInsurance
premium except
in cash.in a particular machinery such as Boiler
14 Standard Fire and Special Perils Policy covers 12 perils. FIRE, LIGHTENING, EXPLOSION/IMP
15 DAMAGE,
There are 15 STORM
add on&coversALLIED PERILS,
which IMPACTupon
can covered DAMAGE,
paymentSUBSIDENCE AND LANDLISED
of extra premium. A) ARCHITECT INC
CONSULTING
16 The extension ofENGINEERS
Loss of RentFESS
underB)Fire
REMOVAL
Policy canOFonly
DEBIRS C) DETERIORATION
be given to the owner of theOF STOCK
Building.
17 There are 13 exclusion in Standard Fire and Special Perils Policy
18 If the policy is cancelled at the request of insured Short Period Premium will be charged, if it is ca
19 rata Premium
In case willis be
a policy charged.
cancelled on account of a Government Order or on completion of a building in
where building are demolished,
20 Escalation Clause – The percentage pro-rata
mayrefund or premium
be selected may only
upto 25% be allowed.
and the additional premium
the full
21 Sum rate oncan
Insured such be selected percentage
fixed on a) Market Valueincrease. The increase
b) Reinstatement of escalation
Value & c) Bookwill be available p
Value.
22 Long term policy can be issued to Dwelling
23 Excess – a) The first 5% of each and every claim arising out of Act of God Perils subject to a min
24 The first 10,000-00
According for each
to Fire Tariff and
– there areevery
four claim arisingZone,
Earthquake out ofnamely
other perils c) 3%
as Zone A, excess
B, C & is
D.applied to
The high
A and
25 In the lower
multiple rate isPer
occupancy charged for Zone
Se rating D.
is applied.
26 Silent Risk – Factories where no manufacturing/storage activities are carried out continuously for
27 No discount is applicable on Silent risks.
28 Retention of the premium shall be based on the appropriate storage rate or silent risk rate of Re.
for the
29 For silentConstruction
Kutcha risk. the premium is loaded with additional rate of Rs.4.0%.
30 For issuing a Declaration Policy under Fire, minimum sum insured is Rs.1 crore and atleast at on
31 should
It is notnot be less than
permission Rs. 25
to issued lacs.
declaration policy in respect of a) Insurance required for a short per
process 3) Stocks at Railway sidings.
32 Minimum retention of premium in Declaration Policy is 50%.
33 Floater Declaration Policy can be issued, minimum sum insured is Rs.2 crore and the minimum r
annualthe
34 Upon premium.
basis of claim experience the premium can be loaded or discount can be given.
35 Maximum Discount for better claim experience is 15%.
36 If the incurred claim ratio is beyond 500%, the premium can be loaded with 100%.
37 Other types of discounts are available in Fire for improvement of the risk such Fire Extinguisher
38 can be maximum
Computation 15%
of Risk – BASIC RATE (-) 5 % REDUCTION FOR SPRINKLERED BLOCK (–) RED
DELETION OF STFI
39 Mega Risks - Risks having AND/OR RSMD
total PERILS,ofIFRs.
sum isnured OPTED (+) LOADING
2,500-00 FORat
crores or more KUTCHA CONSTR
one location for
damage and business interruption combined are known as Mega Risks.
40 List of Hazardous goods can be classified into three categories.
41 Ommission to insure – This clause provides protection to the insured in case he fails to cover a c
machinery/building
42 Reinstatement ValuetoPolicies
insuredcan
subject to payment
be not be issuedoftoadditional premium
cover Stock, @ 5% of theraw
Stock-in-process, original pre
materia
43 If the policy is taken on Reinstatement Value, it does not mean that Under Insurance Clause will
44 Under Reinstatement Value Policy – Reinstatement must be carried out by the insured and comp
45 the destruction
Industrial or damage,
All Risks or within
Policy – This such extended
is a package time may for
cover designed be industrial
allowed bypolicies(both
the insurer, manufac
failing w
with an overall
46 Industrial sumPolicy(Section-II)-
All Risks sum assured of Rs. 100 crores
It allows underand above. upto
insurance The 15%
policyofprovides
the sum cover for 1)
insured.
47 Calculation of under insurance – Sum insured/Market value X Loss
48 Voluntary Deductibles – Suitable discount can be considered, if the insured is opted for voluntary
49 Advance Loss of Profit Policy covers – Loss of projected profit due to interruption of project by a
50 P M L – Probable Maximum Loss – This is a calculation by which an insurer can fix his liability in
particular
51 In the casetime.
of a loss under the Fire Policy, the sum insured is reduced to that extent of amount o
52 The fixing of sum insured under Fire Policy for Building, Plant & Machinery and Furnitures , Fixtu
Market Value
53 Sequence or Reinstatement
of Claim settlement - Value.
Assessed loss - depreciation - salvage - pro-rata average - exce
54 General Law of Contract, Common Law, Indian Contracts Act 1872 is applicable for Fire
55 Fire Insurance Business is Defined in Section 2 of Insruance Act 193
56 Unless otherwise specifically provided for, Fire tariff is applicable to land-based p
General Law of Contract, Common Law, Indian Contracts Act 1872 is applicable for Fire
Rates, Terms and conditions are defined as Erstwhile tariff)
covers if any can be issued.
Strike, Malicious Damage perils at inception of of the policy
ed to the Committee for Rating. Provisional rate of Rs.

he case of Curious, Works of Art, Manuscripts, Obsolete
bmitted and found acceptable by the insurer.
under Sec.III.
.
e annual rate is charged.
e annual rate is charged.
charged.
TFI perils. However, it can be taken but the risk will start
ular machinery such as Boiler.
HTENING, EXPLOSION/IMPLOSION, AIRCRAFT
DENCE AND LANDLISED
xtra premium. INCLUDING
A) ARCHITECTS, ROCK SLIDE,
SURVEYORS AND
DETERIORATION OF STOCKS
o the owner of the Building. D) FOREST FIRE E)
mium will be charged, if it is cancelled by the insured Pro-

on completion of a building in course of construction or
lyallowed.
and the additional premium will be charged at 50% of
fueescalation
& c) Bookwill be available proportionately from the date
Value.
of God Perils subject to a minimum of Rs. 10,000-00 b)

rils c) 3%
s Zone A, excess
B, C & is
D.applied to Architects,
The highest Surveyors
rate is charged for and
Zone
re carried out continuously for 30 days or more.
e rate or silent risk rate of Re. 0.60%0 whichever is higher

of Rs.4.0%.
s Rs.1 crore and atleast at one location sum insured
urance required for a short period b) Stocks undergoing
Rs.2 crore and the minimum retention shall be 80% of the

discount can be given.
ded with 100%.

e risk such Fire Extinguisher Appliances Discount which
RINKLERED BLOCK (–) REDUCTION IN RATES FOR
DING FORat
s or more KUTCHA CONSTRUCTION
one location (LESS ORmaterial
for property insurance, ADD)
Risks.
ed in case he fails to cover a certain part of the
mium @ 5% of theraw
Stock-in-process, original premium
material etc. at the inception of
Under Insurance Clause will not be applicable.
d out by the insured and completed within 12 months after
lowed bypolicies(both
dustrial the insurer, manufacturing
failing which the loss
and will befacilities)
storage settled
oe 15%
policyofprovides
the sum cover for 1) FIRE AND SPECIAL PERILS
insured.
s
insured is opted for voluntary deductible.
to interruption of project by an insured perils.
n insurer can fix his liability in the case of major loss at a
ced to that extent of amount of claim settled.
chinery and Furnitures , Fixtures & fittings is based on
age - pro-rata average - excess
Act 1872 is applicable for Fire Insurance Business
Section 2 of Insruance Act 1938
is applicable to land-based properties only.
Sl.No Add-On Cover
1 Architects, Surveyors and Consulting Engineers

Fees ( in excess of 3% claim amount)
2 Removal of Debris (in excess of 1% claim

amount)
3 (A) Deterioration of Stocks in Cold Storage

premises due to accidental power failure
consequent to damage at the premises of Power
Station due to an insured peril
(B) Deterioration of stocks in cold storage
premises due to change in temperature arising out
of loss or damage to the cold storage
machinery(ies) in the Insured’s premises due to
operation of insured peril.
4 Forest Fire
5 Impact Damage due to Insured’s own Rail/Road

Vehicles, Fork lifts, Cranes, Stackers and the like
and articles dropped therefrom.
6 Spontaneous Combustion
Category I goods
Category II goods
6
Category III goods

Category IV goods
7 Omission to Insure additions, alteration or

extensions
8 Earthquake (Fire and
Shock)
Zone I
Zone II
Zone III
Zone IV
Note :- Dwelling, offices, hotels, shops etc rateable under S

charging a uniform rate of Re 0.10%0 regardless of the zon
9 Spoilage Stocks in specified blocks
Material
Damage
Cover 5 times the Policy Rate
Machinery, Containers & Equipments in specifi

2.5 times the Policy Rate
10 Leakage And
Contamination Cover
Where the tanks are within
the Insured’s own premises
Where the tanks are located
elsewhere
11 Temporary Removal of Stocks
Clause
12 Loss Of Rent clause
13 Insurance Of Additional Expenses of

Rent For An Alternative Accommodation
14 Start up Expenses

Rates applicable Value on which premium
has to be charged
nd Consulting Engineers Policy Rate Specified sum insured

aim amount) not exceeding 7.5% of
claim amount
n excess of 1% claim Policy Rate Specified sum insured
upto maximum 10% of
sum insured
Stocks in Cold Storage 25% of Policy Rate Sum insured of stocks
cidental power failure
t the premises of Power
peril
stocks in cold storage Policy Rate Sum insured of stocks
n temperature arising out
to the cold storage
nsured’s premises due to
.
Minimum Rs. 5 per Specified sum insured
mille
Insured’s own Rail/Road 5% of Policy Rate Policy Sum insured
nes, Stackers and the like
efrom.
Combustion Sum insured of relative
Rs.0.25%o commodity
Rs.0.50%o
Sum insured of relative
commodity
Rs.0.75%o
Rs.1.00%o
ditions, alteration or Policy Rate 5% of sum insured of

BMA
Policy sum Insured
Rs.1.00%o
Rs.0.50%o
Rs.0.20%o
Rs.0.10%o
hotels, shops etc rateable under Section III of the tariff can be covered by
f Re 0.10%0 regardless of the zones
ecified blocks Value of stocks in
specified blocks
olicy Rate
M/A value in specified
blocks.
ontainers & Equipments in specified blocks
Policy Rate
Leakage Leakage & Specified sum

Cover only Contamination insured
Rs.5%o Rs.10%o
Rs.6%o Rs.12%o
10% of policy Rate Policy sum

insured
Policy Rate Specified
sum insured
sum insured
sum insured

PE2020

Caricato da

Informazioni sul documento

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

PE2020

Caricato da

Copyright:

Formati disponibili

Fire

25 Risks in Multiple Occupancy Industrial Estate shall be rated `Per se'

Staff Canteen in a factory the boiler is considered to be a domestic boiler

The burden of proving is on Insured

MISSILE TESTING OPERATIONS: Conducted by Government and their agencies

LEAKAGE FROM AUTOMATIC SPRINKLER INSTALLATION: Exluding loss or destruction dama

30 There are 13 exclusion in Standard Fire and Special Perils Policy

x Contribution: More than one policy covering the same property.

SECTION III (Dwellings, Offices, Hotels & Shops)

Operations such as packing/selecting/assorting/mending/stitching/battery charging and like which

Sl.No Add-On Cover Rates applicable Value on which

4 Forest Fire Minimum Rs. 5 per mille Specified sum insured

7 Omission to Insure additions, alteration or Policy Rate 5% of sum insured

9 Spoilage Stocks in specified blocks Value of stocks in

Where the tanks are located Rs.6%o Rs.12%o

13 Insurance Of Additional Expenses of Rent Policy Rate

14 Start up Expenses Policy Rate

CLOP Policy having 7 conditions (Alteration made in Business/Premiss, Alteration in addition/del

8 Mutual aid schemes

IAR (Industrial All Risks Policy)

d) i) coastal or river erosion

5) Damage directly or indirectly caused by or arising from or in consequence of or contributed co

I. PROJECT INSURANCE or CONSTRUCTION PHASE or TIME POLICIES or ALL RISKS or N

INSTALLED MACHINERY or OPERATIONAL PHASE or ANNUAL POLICIES

CONTRACTORS ALL RISK INSURANCE

9 Packing materials of anykind is not payable

MAJOR PERILS/AOG Perils –

SECTION II: THIRD PARTY LIABILITY -

21 All SUB-CONTRACTS FORMING PART OF A PROJECT - Sub-Contracts are subject of these G

28 In case deletion of Maintenance Visits/Extended Maintenance Cover availed at the inception of C

31 In SCE SI - Preoperative expenses are not considered

e: Heat, Fuel and an Oxidizing agent (Usually

Terms and conditions are defined as Erstwhile

s if any can be issued.

he Committee for Rating. Provisional rate of Rs.

es higher than those given under the tariff.

ls. However, it can be taken but the risk will start

chinery such as Boiler. (Plinth , foundations can

4.0%. (Temporary Sheds for Monsoon protection

Premium in Short period scale

sured throughout the period of the policy in return

ured - Specified locations only covered - highest

re covered under floater policy, no floater extra is

crore and atleast at one location sum insured

required for a short period b) Stocks undergoing

n previous to the loss is less than the amount

ore and the minimum retention shall be 80% of

g 15%. Previous experience is not available

VI & VII - Not applicable on Floater & Floater

ed out continuously for 30 days or more.

or silent risk rate of Re. 0.60%0 whichever is

d is opted for voluntary deductible. i.e. SFSP &

ERED BLOCK (–) REDUCTION IN RATES FOR

ayable i) smoke and heat ii) Scorching iii) Falling

erial or space devices (baloons, rockets, artificial

ruption or cessation of any process or operations

stituted Authority or loss results from unlawful

yphoon, tempest, Hurricane, Tornade, Flood or

d to the Insured property due to impact by any

s payable excluding a) Normal cracking,

ursting includes 'breaking apart' of water tanks,

ss or destruction damage caused by a) repairs

s - i.e. NIL Excess) Excess is applicable on bais

tion EXCLUDING a) Pollution or contamnation