Page 128 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(vii) Matches
(viii)Methylated spirit
(ix) Nitro Cellulose Plastic
(x) Paints & Varnishes.

Q2. Discuss the principles of rating.

Ans. Rating is done separately for "Building" and "Contents".
The "Building"rate is applicable to pump-houses, garages,
compound walls, computers including computer system
records and ancillary equipment and/or other utilities.

There are some specific rules applicable for
"Contents" rating:
(i) Stocks belonging to the insured stored in the area

adjacent to the insured's premises are held covered.
(ii) Incidental operations such as grinding of lenses in

optical frame shops, polishing and varnishing in
furniture shops, occasional repairs etc are permitted.
(iii) The presence of hazardous goods in "non-hazardous"
shops, below 5% of the total stock value is allowed.
(iv) For seasonal storage of crackers in "non-hazardous"

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