The most popular and applicable Asset Insurance policy probably in the world. Cover your belongings against the risk of Fire, Earthquake and other Natural Calamities, Riots, Stikes and Malicious Damage. Get a quick quote by submitting your requirement at https://squareinsurance.in/contact

1. Fire Insurance
Product Presentation

2. Spinners our Clients Throw...

3. Does my client need Fire Insurance
How do I tell him the
importance of Fire
Insurance??

4. Fire Insurance – Significance
Fire Insurance protects you from the damage :
 During or immediately following a fire caused by
Smoke, Heat, Scorching and falling walls.
 Due to Water or any other extinguishing media used
in putting out fire.
 Due to collapse of Floors and roofs consequent to
fire.
 To property whilst being removed from the burning
building in an effort to mitigate the loss.

5. Define Fire Insurance
So I can insure the entire
property of client under
Fire Insurance??

6. Insurable Property
Fire insurance primarily covers tangible
properties like
• Buildings
• Electrical installation in buildings
• Machinery, plant and equipment, accessories, etc.
• Goods (RM/WIP/Finished goods, packing materials etc)
• Goods in open
• Furniture, fixtures and fittings
• Pipelines (including contents) located
inside or outside the compound

7. Any Preferred segment to focus?
Who should be my focus
clients??

8. Our Approach
Referral
Preferred
Most Preferred
Risk
Segmentation

9. Risk Segmentation
Most Preferred
Dwellings
Building Under Construction
Engineering Workshops
Software Development
Preferred
Shops dealing in Non Hz
goods
Distilleries
Motor Vehicle Garages
Amusement parks
Referral
Plastic Goods Mfg
Cardboard Mfg
Chemicals Mfg
Cold Storages
Decline
Cotton Ginning
Match Factories
Beedi Factories
Jute Mills

10. Most Preferred Segment
Non Industrial Risks
• Dwellings, Office premises
• Hotels,Resorts,
Educational Institutes,
Hospitals
• Motor showrooms, large
garages (excluding stocks
stored in open)
• Petrol & Diesel & CNG
vending stations
• Auditorium, Stadium etc
Industrial Risks
• Superior quality roads –
• Engineering Workshops
(without Paint shops)
• Software Development
• Cement Grinding Units
• Water treatment plant etc
• Building under
Construction

11. Segments that can put me on fire!!
Few segments could be
very hazardous.what are
those? Do we cater to
them??

12. Decline Segment
Cotton ginning and Press
Jute Mills, Poly-foam Units
Timber merchants and Saw mills
Tobacco curing and drying
Standalone Stocks
Stocks of Traders, transporters
Spray Painting, Powder coating
Tobacco grinding/ crushing Manufacturing
Electric Transmission / Distribution Lines

13. What all perils we cover
along with Fire ?
Coverage

14. Fire Policy – 12 Standard Coverage
• Fire
• Lightning
• Explosion/Implosion
• Aircraft damage
• Storm, Cyclone, Hurricane,
Tornado, Flood
• Impact Damage
• Subsidence and Landslide
• Riots, Strikes,
• Malicious Damage
• Missile Testing Operations
• Leakage from Automatic
Sprinkler Installations
• Bush Fire
• Bursting and/ or
Overflowing of Water Tanks,
Apparatus & Pipes

15. Exclusions
Is there also an exclusion
list that I can share with
my client???

16. Fire Policy - General
Exclusions
•Compulsory Excess
•War & War group of perils
•Nuclear group of
perils
•Pollution and
Contamination
•Bullion or unset precious
stones, manuscripts etc
•Other specified exclusions
• Electrical or Mechanical
breakdowns
• Loss of earning, market or
other consequential loss etc
• Loss or Damage due to
Earthquake, Volcano or other
convulsions of nature

17. Can I differentiate myself
by giving additional
cover??
Can I offer extra on additional premium?

18. Fire Policy – Add-on Covers
Various Add-on cover available with additional
premium
Earthquake (fire and shock)
Terrorism
Impact damage due to insured's own vehicles
etc
Expediting Expenses
Omission to insure additions, alterations or
extensions
Fire Fighting Expenses
Removal of debris in excess of 1% of claim
amount

19. Fire Policy – Add-on Covers
Spoilage Material Damage
Leakage & Contamination
Loss of Rent / Additional Expenses of Rent
Architects, Surveyors & Consultant Engineer Fee
Debris removal

20. What is Sum Insured??
and what is basis for the
same
Can I decide on Insured value?

21. What is Sum Insured?
It is the limit of liability under the policy. It represents the
actual value of the property insured.
The responsibility of deciding the sum insured is always
the insured’s. Insurer/Advisor can only guide.
If there is over-insurance- NO benefit to the insured; If there
is under-insurance - the claim amount will be
proportionately reduced by applying pro-rata average
Value at which the damaged
Property can be reinstated
or replaced by new property
Reinstatement Value (RIV) Market Value
Value at which property of the
same age and condition can be
bought or sold

22. Test Your Memory

23. Review Question - 1
Which of the following are covered under Fire
Policy?
Volcano Damage
War damage
Explosion
None of the Above
Explosion

24. Review Question - 2
Which of the following are excluded from Fire
Policy list?
Market Loss
Storm, Cyclone
Tank Bursting
Market loss
Landslide

25. Review Question - 3
Which of the following are considered for
add-on covers?
Terrorism
Spoilage material damage
Temporary removal of
stock
All of the above

26. Occupancy Classification – Hazard
Grades
Hazard grade Hazard level
1 Non Combustible
2 Low Hazard
3
Medium Hazard
4
5
Intermediate Hazard
6
7 High Hazard
8 Very High hazard
9 Severe Hazard
10 Storage Risks
Various occupancies under fire have been classified into 10 hazard
grades based on severity of fire hazard and other risk factors.

27. Occupancy Segmentation
Based on the nature of occupancies, hazard grade and claims
experience, various occupancies have been classified into
following four segments –
Most Preferred –
• Low hazard grade occupancies
• Target segment
• Objective to increase the
market share
Preferred –
• Primarily industrial & few non
industrial occupancies
• Medium hazard grades
• Due diligence in terms of
acceptance
• Application of deductible and
warranties
Decline –
• Occupancies which are not to
be underwritten
Referral –
• Need to be referred to
authorized underwriters
• High hazard and high
exposure.

28. Fire Insurance – what are Rating
parameters?
Rating is done on the basis of Occupancy & Location
Exposure
What is Occupancy? – It is the activity carried out at the
premises for e.g. automobile manufacturing, office premises.
etc
Occupancy indicates inherent process hazard
Occupancies are classified as
A)Non Industrial Risks
B)Industrial/Manufacturing Risks
C)Utilities
D)Storage / Warehouse Risks
E)Tank farms / Gas holders

29. Rate Calculation
Technical Rate Calculation
1) Basic Rate for Occupancies
Less – STFI/ RSMD deletion rates, if STFI/ RSMD perils are
deleted
2) Basic Rate without STFI/RSMD
Less – Loading/ Discounting on the risk features like FEA,
Claims experience, Type of construction, Physical Risk
Rating etc
3) Technical Risk Rate

30. How to Prepare quotes??
What all information do I
gather from client to
prepare quotes?

31. Basic information to collect
•Information Required
• Client Name
• Sum Insured and block wise values (Proportion of
stocks)
• Risk Location, layout of the unit
• Occupancy of the risk
• Claims Experience of the past 5 years
• Add-on covers required
• Fire Protection Measures
• Risk Inspection report
Detailed Information sheet

32. Fire Policy – General Provisions
• Policy applicable for land-based properties
• Policy cancellation
• at the option of insured – Short Period Basis
• at the option of the insurer – Pro-rata Basis
• Mid-term change in Sum Insured
• increase – Premium collection on Pro-rata Basis
• decrease – Premium refund on Short Period Basis
• Floater/Declaration/ Floater Declaration Policies
for stocks

33. General provisions – contd.…
• Block-wise Sum Insured to be shown in the policy
•Building
•Machinery and accessories
•Stock and Stock-in-Process and
•Furniture and other contents
• STFI and/or RSMD Perils can be deleted at the
inception of policy
• Long-term policies can be issued only for
Dwellings
• Short-term policies can be issued with short
period rates

34. Clauses
My client refers to so
many clauses..Can I have
a list of all relevant fire
clauses??

35. Fire policy clauses
• Agreed Bank Clause
• Contract Price insurance Clause
• Designation of Property Clause
• Re-instatement Value clause
• Local Authorities Clause
• Escalation Clause
• Architects, Surveyors and Consulting Engineers Fees (upto
3% of the claim amount)
• Removal of Debris following damage (upto 1% of the claim
amount)
• Floater Clause
• Declaration Clause
• Voluntary Deductible Clause

36. The ICICI Lombard Advantage
Efficient Claims Management
Preliminary report within 72 Hrs from return of site
Interim report to facilitate On Account Payment
Site Visit within 24 hrs of Intimation
Time depending upon location, in any case not exceeding 48hrs
Final report within 15 working days from submission of
documents /information
Web Based Claims Intimation Portal

37. Fire claims procedure
• Summon fire brigade
• Take internal fire fighting measures till fire brigade
arrives
• Inform insurer for survey
• Leave the damaged/destroyed items for survey/
inspection
• Take photographs of damaged property

38. Additional Steps
• Obtain estimate of loss for different items like fixed assets
and stocks
• Take risk minimization measures like shifting of stocks and
temporary repairs of buildings to prevent aggravation of
further losses.
• Early disposal of salvage

39. Fire claims
Documentation
• Claim intimation to Insurers
• Completed Claim Form
• Occurrence & meteorological Report
• Fire Brigade Report
• First Information Report (FIR) and Final report from Police
• Estimate of loss
• Insurance Register /Books of Accounts for Surveyor’s
verification
• Survey Report
• Bills/Invoices for reinstatement in respect of Building loss

40. Claims Procedure
Loss Occurrence
& Intimation
Initial Loss Assessment (ILA) &
Letter of Requirement (LOR)
provided to the Insured
Submission of Documents
by the Insured
Final Survey Report released
by Surveyor
Settlement of Claim by
releasing the Final Payment
Surveyor Deputed
On-account Payment made for
High Value Claims subject to
Admissibility of Claim

41. Claims & Loss Management
In the event of a Loss occurring, management of the claim is of significant importance
Notice of Loss –
The primary responsibility in the event of a loss occurring at the premises of the Insured, is a
formal intimation of Claim to be made to the Insurance Company at the earliest.
 Call Centre 24*7
 Direct Intimation to Relationship Manager
Immediate Deputation of Surveyor may help in minimizing the Loss
 Network of Surveyors & Investigators
 Partner - Cunningham Lindsey International Pvt. Ltd. – 2nd Largest Surveying Co. in
the World
 A Surveyor is deputed within 24 hours of Loss Intimation.

42. Claims & Loss Management
Claims Evaluation –
IRDA governs that all Claims in excess of Rs. 20,000/- have to be surveyed, assessed &
adjusted by a Third Party Surveying Agency.
A preliminary report called as the Initial Loss Assessment (ILA) is released by the
Surveyor.
Also, a Letter of Requirement (LOR) stating all the documents necessary for processing of
the Claim is provided to the Insured.
Cause of Loss Analysis is done by the Surveyor & informed to both the Insurer & Insured.

43. Claims & Loss Management
Documentation –
q True Copy of Policy with schedule/endorsements/clauses
q Incident Note
q Claim Form/ Claim Bill
q Final Investigation Report
q Fire Brigade Report
q Photographs
q Cost of Re-instatement with adequate supporting
q Financial Records/ Proof for adequacy of Insurance
q Other Relevant Documents pertaining to the Loss Situation
On-Account Payment –
In case of High Value Claims, we believe in assisting the Insured with an Interim Payment as a
relief measure. This is subject to Admission of Liability in the Claim.

44. Claims & Loss Management
qFinal Survey Report –
qBased on the Documents submitted by the Insured, the Final Survey Report is released
by the Surveyor outlining the Details of the Loss and the Assessment of the Claim.
qSettlement –
qBased on the Documents submitted by the Insured, the Final Survey Report is released
by the Surveyor outlining the Details of the Loss and the Assessment of the Claim.
qTimely Disbursement of Claim Payments for losses within the scope of the policy
coverages is of prime importance.
Loss Minimization Advice:
Our Experience of Losses & Practices
in the same Industry are shared with the Insured towards betterment of the Risk.