Page 151 - Fire Insurance Ebook IC 57

The Insurance Times

materials, proper arrangement of machinery and
processes, proper maintenance by repairs, overhaul and
lubrication, efficient supervision and healthy employer-
employee relationship.

g. Moral hazard - Assessment of moral hazard is a
difficult task. However, general observations are
made in respect of the efficiency, respectability and
commercial standing of the proposer, the period of
trading, previous business failures, quality of labour
etc.

h. Adequacy of sum insured - Although the inspector,
who makes the risk information report is not a
professional valuer, he expresses his opinion about the
amount proposed for insurance approximates the value
of the property, particularly buildings and machinery.

i. Insurance and loss experience - Information relating
to whether the insurance was declined or cancelled or
not renewed by other insurers. Particulars of previous
losses, if any, by fire or other perils, their causes, the

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