Page 423 - IC38 GENERAL INSURANCE

Summary

a) Fire insurance policy is suitable for commercial establishments as well as for
the owner of property, and for individuals / financial institutions who have
financial interest in the property.

b) Variants of fire policy include:

 Market value basis policy
 Rreinstatement value policies
 Declaration policy
 Floater policy

c) Consequential Loss (CL) Policy or Business Interruption (BI) policy provides
indemnity for loss of what is termed as gross profit – which includes Net
Profit plus Standing Charges along with the increased cost of working
incurred by the insured to get the business back to normalcy, as soon as
possible to reduce the final loss.

d) Burglary policy is meant for business premises like factories, shops, offices,
warehouses and go-downs which may contain stocks, goods, furniture
fixtures and cash in a locked safe which can be stolen.

e) Money insurance policy is designed to cover the losses that may occur while
cash cheques/postal orders/postal stamps are being handled.

f) Money insurance policy provides cover under two sections: transit section
and premises section.

g) Fidelity guarantee insurance indemnifies employers against the financial loss
suffered by them due to fraud or dishonesty of their employees by forgery,
embezzlement, larceny, misappropriation and default.

h) Types of fidelity guarantee policy include: individual policy, collective
floating policy, positions policy and blanket policy.

i) Bankers indemnity policy is a comprehensive cover, drafted for the banks,
NBFC's and other institutions who deal with operations involving money,
considering the special risks faced by them regarding money and securities.

j) The major policies that fall under engineering insurance include:

 Contractors All Risks Policy
 Contractors Plant & Machinery Policy
 Erection All Risks Policy
 Machinery Breakdown Policy
 Boiler and Pressure Plant Policy
 Machinery Loss of Profits Policy
 Deterioration of Stock Policy
 Electronic Equipment Policy
 Advance Loss of Profit Cover

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