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Sunday, June 25, 2017

Fire Insurance

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Kenindia Assurance Company Limited offers various Insurance products in the market. These products may be classified into four categories as given below:

  • FIRE DOMESTIC INSURANCE
  • FIRE INDUSTRIAL (MATERIAL DAMAGE) INSURANCE
  • FIRE BUSINESS INTERRUPTION ( LOSS OF PROFITS)
  • INDUSTRIAL ALL RISKS

Under each class of Insurance, the basis of the contract are proposal forms, premiums are the basis for consideration of indemnity and upfront payment of full premiums is mandatory before commencement of cover. Under Fire Insurance, there are four categories of products offered.

FIRE DOMESTIC INSURANCE

This is offered to a residential and or private dwelling house or private flats including domestic outbuildings, landlord’s fixtures and fittings, walls, gates and fences under the same property. The insured will be indemnified against damage to the property as per values specified in proposal form if caused by the following:

  • Fire, lightening, thunderbolt, earthquake or volcanic eruption.
  • Explosion.
  • Riot and strike.
  • Aircraft or other aerial device.
  • Bursting or overflowing of water tank apparatus.
  • Theft accompanied by actual forcible and violent breaking into the building.
  • Impact to the building by any road vehicle or animal not belonging to the insured.
  • Storm and tempest.
  • Additional expenses incurred for alternative accommodation and loss of rent.
NOTE: The Insurance therein may be extended to include contents under section B. This may include furniture, fixtures, household goods and personal effects of every description the property of the insured or member of his family residing with him if covered under the policy.

FIRE INDUSTRIAL (MATERIAL DAMAGE) INSURANCE

This is a basic Fire policy. It covers the capital assets of the insured. This may include:

  • Buildings.
  • Stock in trade.
  • Furniture, fixtures and fittings.
  • Office equipment.

The cover is given against perils such as fire, lightening, limited explosion, aircraft and other aerial devices, strike, riot and locked up workers, malicious damage, earthquake or volcanic eruption, storm, tempest and floods, escape of water from any tank, apparatus or pipes, impact by any road vehicle or animal, bush fire, subterranean fire and spontaneous combustion.

FIRE BUSINESS INTERRUPTION ( LOSS OF PROFITS)

The cover (consequential loss) protects the insured from future earning capacity. It covers loss of profits due to reduction or complete stoppage of production following sudden and unforeseen damage including breakdown to plant or machinery. In the event of loss, what is at risk is the sales referred to as Turnover or sometimes Revenue. It seeks to make good the lost income (profit element) arising out of damage at the insured’s premises or elsewhere (e.g premises of the suppliers or customers) or by paying the additional expenditure arising from increase in cost of working to assist the insured to maintain his own income.

The perils, conditions and warranties in Fire material damage policy must be the same as those in the Fire business interruption policy. For a claim under business interruption to be admissible, the fire material damage claim has first to be admissible.

INDUSTRIAL ALL RISKS

This is a comprehensive Fire Policy which includes Fire material damage and business interruption. This is normally given after taking into consideration the volume of business and the huge sum insured. This may cover:

SECTION A - MATERIAL DAMAGE

  • Buildings.
  • Plant and machinery spares.
  • Office equipment, fixtures, furniture’s and fittings.
  • Other contents.
  • Stock in trade.
  • Customer’s property.

SECTION B – BUSINESS INTERRUPTION

  • Gross profit.
  • Increased cost of working.
  • Auditors Fees.
NOTE: With an indemnity period ranging between 6 months to 18 months, the policy may be extended to cover theft subject to terms, condition and warranties as specified in the policy.
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