Page 188 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

Pure burning cost = 1,18,000 x 100 = 2.145
55,00,000

Loaded burning cost with factor 100/70 = 2.145 x 100/
70 = 3.064 ( This is the rate for the cover)

There are some other types of Excess of Loss
covers:
i) Per Risk Cover - This is arranged to protect

loss affecting an individual risk e.g single fire
loss
ii) Per event Cover - This is arranged to protect
loss affecting more than one risk and arising due to
natural perils ,e.g floods, riots etc.

Reinsurers too sometimes need reinsurance protection
to limit their liabilities according to their financial
conditions. They then reinsure themselves to protect
their portfolio. This is called retrocession.

Q9. Write a note on Indian fire reinsurance
program.

Ans. The Indian Fire Reinsurance programme is reviewed

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