Page 190 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

and protected by excess of loss covers.

v) The Indian market has a Market Fire Pool
formed by the four subsidiaries and managed
by GIC. The companies are required to make a
cession of 30% of the balance, after obligatory
cession and net retention, to the Market Fire
Pool subject to maximum of the
predetermined amount based on either the
sum insured or the PML in respect of medium
sized risks and listed risks. The cessions to
Market Fire Pool are retained within India
and protected by excess of loss cover.

vi) For still larger risks ( listed risks), the surplus
after the cession to the Market Fire Pool is
ceded to first surplus treaty and any further
surplus amount is ceded to second surplus
treaty. This treaties are arranged by the four
subsidiary companies after deciding the
retention amounts. Any further balance is ceded
to the Market Surplus Treaty arranged by GIC
and there after if any, to Facultative Cover.

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