Page 179 - Fire Insurance Ebook IC 57

The Insurance Times

damage by fire, smoke and water. E.g, some
goods like crockery, watches etc, though
themselves are non hazardous are easily
perishable, so attract lower limits.

(iii) Fire protection system, i.e the nature and number
of fire extinguishing appliances, fire brigade facilities,
sprinkler installation, etc are to be considered. For
risks carrying discounts due to FEA factors, the
sanctioned limits are increased.

(iv) The risk situation is considered from three points
of view. They are : (a) the degree of exposure
hazard existing from adjacent/contiguous properties.
(b) the actual situation , i.e, whether the places are
cities, towns or mofussils, and (c) conflagration
hazard, i.e the hazard from the adjoining buildings
of the insured premises.

Q4. What are the objects of reinsurance

Ans. The objects of Reinsurance are :
(i) Wider distribution of risks.
(ii) Limitation of liability to an amount proportionate to
their finances.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 192

Copyright@ The Insurance Times. 09883398055 / 09883380339