Page 169 - Fire Insurance Ebook IC 57

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sum insured and probable maximum loss. For this purpose, risks
are classified into
a) 'non-risk' booked,
b) 'risk-booked' and
c) 'listed' risks.

n The surplus after obligatory cessions in non-risk booked portfolio
is entirely retained by the companies and protected by excess of
loss cover.

n The Indian market also has a Market Fire Pool formed by all the
four companies which is being managed by GIC. Companies are
required to make a cession of 30% of the balance after obligatory
cessions and net retention to the Market Fire Pool subject to
maximum of predetermined amount either sum insured or PML in
respect of medium sized risks and listed risks. The cessions to
Market Fire Pool are retained in India subject to excess of loss
protection.

n In respect of still larger risks, the surplus after cession to the
Market Fire Pool is ceded to first surplus treaty and any further
surplus to the second surplus treaty.

n Surplus over gross capacity of the market is reinsured with GIC
facultatively and protected by Excess of Loss cover.

Prescribed returns to be sent to GIC

n Large Risk Advice. This form is used for entering Risk data at the
time of attachment of a new listed risk or modifications of existing
listed risk information.

n Policy copy.

n Endorsement data on the policy.

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