Page 121 - Fire Insurance Ebook IC 57

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c) Tariff extra for "Kutcha" construction if applicable, (to be
applied on a - b)

d) Discount for claims experience (to be applied on a - b + c)
e) Discount for FEA on protected blocks (to be applied on a - b + c)

Rating

n Fire insurance premium rating is based on certain basic principles.
n Firstly, the rate of premium must be commensurate with the

physical hazards involved.
n Secondly, classification of risks, based on hazards evaluation,

into homogeneous groups, is adopted. Each group comprises
risks exposed to more or less, the same degree of exposure.
n Thirdly, the rates of premium are based on the past loss experience
of each group.
n Fourthly, the principle of discrimination differentiates individual
risks within a group taking into account favourable and
unfavourable features present.

List of hazardous goods as provided in the Tariff

1. Celluloid Goods.
2. Coir loose.
3. Crackers & Fire works.
4. Explosives of any kind.
5. Hay / straw.
6. Hemp.
7. Jute loose.

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