Page 284 - DMGT303_BANKING_AND_INSURANCE

Unit 13: General Insurance

 Loss, destruction or damage to any electrical and/or electronic machine, apparatus, fixtures Notes
or fitting (excluding fans and electrical wiring in dwellings) arising from or occasioned by
over-running, excessive pressure, short circuiting, arcing, self-heating, or leakage of
electricity, from whatever cause (lightning included).

Expenses necessarily incurred on:

(i) Architect's surveyor's and consulting engineer's fees and
(ii) Debris removal by the insured following a loss, destruction or damage to the property
insured by an insured peril in excess of 3% and 1% of the claim amount respectively.
Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage
or any kind or description whatsoever.
The clauses covered above are subject to the normal general conditions of the insurance company.

Add-on Covers

The insurers can issue the standard fire policy as per the new Fire Tariff along with added
benefits at the option of the policyholders by charging additional premium. These added benefits
or add on covers are as follows:
1. Architect's surveyor's and consulting engineer's fees (in excess of 3% of the claim amount).
2. Debris removal (in excess of 1% of the claim amount).
3. Deterioration of stocks in cold storage premises due to power failure following damage
due to an insured peril.
4. Forest fire.
5. Impact damage due to an insured's own vehicles, forklifts and the like and articles dropped
there from.
6. Spontaneous combustion.

7. Omission to insure additions, alterations or extensions.
8. Earthquake (fire and shock) as per minimum rates and excess applicable as specified in the
tariff.

Standard Policy Coverages

The tariff advisory committee has prescribed three types of fire coverages viz., Policy A, Policy
B, and Policy C.

Policy A

Fire Policy A covers the following perils
1. Fire
2. Lightning
3. Explosion/Implosion
4. Impact damage
5. Aircraft damage
6. Riot, strike and malicious and terrorist damage

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