Insurance Uncovered

The following are some of the frequently asked questions on property insurance, compiled from IRDAI’s website:

Why should I insure my building?

Fire and other perils (normally covered under a fire insurance policy) can cause loss/damage to buildings. There have been instances of fire accidents that have completely destroyed multi-storey buildings. Floods can also bring about devastating losses. Similarly, riots and acts of terrorism can result in huge losses to human lives as well as properties.

What will be the cost of a fire insurance policy?

The cost of a fire insurance policy or the premium can depend on the:

• Perils to be covered

• Value of the items covered

• Usage of the premises proposed for insurance

• Location details of the premises proposed for insurance

• Construction of building and occupancy

Consequent to the de-tariffing of the non-life insurance segment (except for motor third party insurance where premium rates are laid down by IRDA), premium rates charged by each insurer may differ. However, they should have been filed with IRDA under the File and Use procedure.

In case of loss, what are the obligations of the insured?

Every insured is expected to behave as though he is uninsured. Take all precautions to prevent/aggravate the loss. Inform the insurance company, which has to be given an opportunity to inspect the damages. The fire brigade will assist you in putting out the fire.

During fire fighting, any damage caused to other insured property by water, will be paid by the insurance company. Extend co-operation to the surveyor while inspecting and assessing the loss. If the surveyor is likely to arrive late, take photos and shift unaffected assets to a place of safety. Give completed claim form and documents as required by the insurer in support of your claim. After repairs/replacement, submit bills to the insurer.

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