Page 126 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

basis of incurred claims ratio of
(a) all policies covering the Insured's interest

on the principle of one risk- one rate.
(b) of the preceding 3 policy periods.

d. Fire extinguishing appliances discount - FEA
discount can be granted as per scale, subject to the
following :

(i) System shall be erected and tested as per the
relevant regulations.

(ii) Certificate from Professionals confirming the
efficiency of the system and its compliance with
the Rules submitted by the insured.

(iii) The installation is maintained in efficient working
order at all times and an Annual Maintenance
Contract with an external agency should be in force.

The specific rates based on the type of Fire Extinguishing
system used is provided in the tariff.

The computation is done in the following sequence:

(i) Basic Rate

(ii) Reduction in rates for deletion of STFI & RSMTD

perils

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