There are also instances where some type of direct damage occurs that in turn triggers some type of consequential loss. FIRE CONSEQUENTIAL LOSS INSURANCE POLICY TARIFF . No Consequential Loss (Fire) Insurance Policy may be issued except under the standard terms and conditions or at rates lower than the rates provided in this Tariff without the specific approval of the Tariff Advisory Committee. A natural disaster such as a flood or fire would create a great deal of property damage.This direct damage would be covered under flood or fire insurance, allowing the business to repair the interior and exterior of the damaged building or buildings. Fire Consequential Loss insurance covers loss of profit upon business interruption due to fire or other extended perils covered under the Standard Fire policy. This website uses cookies and you agree to our use of the same if you continue browsing. Multiple Choice Questions Department of Financial Services. INSURANCE CLAIMS FOR LOSS OF PROFIT AND LOSS OF STOCK. Personal Lines Insurance. The unfortunate event of a fire may cause further financial losses as a result of the loss of your physical assets. Insurance Act defines fire insurance as follows: ―Fire insurance business means the business of effecting, otherwise than incidentally to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies.‖ Gross Profit is defined as the sum of Net Profit and insured standing charges. 113 CIN: U66010PN2000PLC015329 CONSEQUENTIAL LOSS (FIRE) INSURANCE POLICY ANNEXURE ‘A’ … Fire Protection: Please detail the Fire Protection which exists at the situation: 9.2. What is this product about ? Consequential Loss (Fire) Insurance Policy Page 1 of 11 Bajaj Allianz General Insurance Company Limited GE Plaza, Airport Road, Yerewada, Pune-411006, Reg. It specifically excludes any consequential loss. Insurance Claims: Problem and Solution # 15. There­fore, Insurance Company generally insists on taking a policy for Loss … Knowledge Centre Whatsapp us on 73045 24888 Contact Us Types of Fire Insurance in India. This policy cover against losses resulting from the interruption of or interference with the trading or business activity caused […] The Sum Insured is based on the gross profit of the business. Sony Ltd.’s Trading and Profit and Loss Account for the year ended 31st March 2011 were as follows: The company had taken out a fire policy for Rs 3,00,000 and a loss of profits policy for Rs 1,00,000 having an indemnity period of 6 months.  Following is a list of the broad exclusions and inclusions of the policy. Hence, for complete protection to the business enterprise and its profitability, Consequential Loss Insurance is very essential in addition to Fire Insurance. 3. This policy cover against losses resulting from the interruption of or interference with the trading or business activity caused by fire, lightning, If loss consequential to the loss of stock is also insured, the policy is known as loss of profit or consequential loss policy. When property is damaged by fire, the loss is said to be a(n) _____ loss. Product Info . 4. On the premise of the necessities, the following types of fire insurance policy can be availed, which are: Specific Policy: Under this policy, for a certain property, a specified sum insured is determined and in case of any loss, the compensation will be provided for the loss provided it is less than the determined amount. Fire Consequential Loss Policy Tariff This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and pursuant to the answers given in the Insured’s Proposal Form (or when the Insured applied for this insurance) and any other disclosures Consequential Loss Policy indemnifies the insured for loss of net profit, standing charges and increase in cost of working expenses resulting from an accident identifiable under fire and allied perils insurance policy. Insurance Times is pleased to announce the launching of Guide Book for Fire & Consequential Loss Insurance (IC57) for Associateship exam Non Life of Insurance Institute of India. Be sure to also read the general terms and conditions. Consequential Loss Insurance compensates for the revenue loss suffered by the enterprise. Any loss under the material damage policy will affect the business interruption insurance as this will lead to interruption in the business in terms of loss of production, sales and consequently earnings. So when the average clause applies, the Net claim for loss of stock shall be calculate by applying following formula: If there is no loss, there is no liability even if there is fire. Fire Hydrants/Hosereels (Yes/No) Sprinkler System (Yes/No) Fire Extinguishers (Yes/No) Fixed C02', Others (i.e. You may have to shut down your business temporarily to repair the damages. However, the following is only a list of mains and for a complete exhaustive list you must read the policy wordings - T he Consequential Loss Policy contains a Material Damage Proviso which states that a claim must be admitted in the Fire Policy before the loss in the Consequential Loss Policy is payable, as such a Fire Insurance policy must be in place in the event a claim arises. Always. Be sure to also read the general terms and conditions.) This optional extension to the Fire Insurance Policy is protects you in such a situation. This insurance must be taken up together with the fire (material damage) policy. The loss of profit can be insured against by “Loss of Profit” or “Consequential Loss” policy. fire consequential loss insurance A relief for a new beginning. During this time, our Fire Consequential Loss Insurance policy will cover the losses caused by business interruption following a fire, so you can safeguard your business while you work on getting it back on track. Fire & Consequential Loss Insurance: Basic Principles and the Fire Policy; Add On Covers and Special Policies; Fire Hazards and Fire Prevention; Erstwhile Tariff – Rules and Rating; Documents; Underwriting; Claims – Legal & Procedural Aspects; Consequential Loss Insurance… Deluge, Halon, Inergen ,FM200(R) etc. Insurance MCQ Personal Lines Insurance When property is damaged by fire, the loss is said to be a(n) _____ loss. Never. It’s only a difference of two words – loss vs. damage – but it can be very confusing for your car insurance clients to understand. overview fire consequential loss is property insurance that protects your business from loss of profits, rental, or standing charges or increases in the cost of working due to business interruption following a loss to fire … Insurance Claims Papers. no. consequential loss policy This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and pursuant to the answers given in the Insured’s Proposal Form (or when the Insured applied for this insurance) and any other disclosures made by the Insured between the time of submission of the Insured’s 2000: Add to Cart: IC-66: Marine Insurance Claims SmartPractice Mock Tests (500 MCQ) Last updated: May 2020: Rs. Allianz helps you to resume your business operation after a fire accident. 1. Fire and Consequential Loss Insurance SmartPractice Mock Tests (650 MCQ) Last reviewed: May 2020: Rs. In case of a major loss caused by Fire, there could be an interruption in business operation leading to reduction in turnover finally resulting in possible loss … Is there any back up Water Supply available? The Consequential Loss (Fire) Insurance policy is an extension of the material damage policy for protection against consequential damages caused by a fire. 3. 3) Contract of Indemnity: Fire insurance is a contract of indemnity and the insurance company is liable only to the extent of actual loss suffered. MEANING OF FIRE For purposes of insurance, fire means: 1. What is the source of the Water Supply at the situation? Mcq On Fire Insurance related files: Insurance Multiple Choice Questions Flashcards by Jeremy IC 57 FIRE AND CONSEQUENTIAL LOSS INSURANCE CHAPTER 4 amp 5 INSURANCE LAW PRACTICE Insurance MCQ Questions and Solutions with Explanations FIRE AND SAFETY QUESTIONS FIRE AND SAFETY MULTIPLE CHOICE Chapter 1 GENERAL PRINCIPLES OF INSURANCE 2. Consequential Loss/Business Interruption insurance covers your losses due to business interruption, and fans assurance for the future. Fire and Special Perils Policy compensates only for Material Damage to the insured property. This guide will be very helpful for candidates appearing in this examination. Tags: Previous year Solved Papers, Exam papers, Question papers, Question And Answers. We clarify the differences between consequential loss and consequential damage with real-life examples, so it’s easy for you to explain policy exclusions to clients. The insurer rarely admits a claim for consequential loss without admission of liability for loss of assets by fire. When the loss is caused by an "act of God" 2000: Add to Cart: IC-60: Marine Cargo Insurance SmartPractice Mock Tests (500 MCQ) Last updated: May 2020: Rs. MCQ Objective Guide Book for FIRE amp CONSEQUENTIAL LOSS. PRODUCT DISCLOSURE SHEET (Please read this Product Disclosure Sheet before you decide to take up the Fire Consequential Loss Insurance. When the loss is to insured property that has be removed because of endangerment by a peril insured against under the policy. What is this product about? Also known as consequential loss insurance, Fire Business Interruption Insurance provides indemnity to the insured in respect of loss of profit. 9. You are required to compute the consequential loss claim. When property is damaged by fire, the loss is said to be a(n) _____ loss. Such loss cannot be covered under fire policy. Question papers Insurance Institute of India. 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