Page 198 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

determined by an evaluation of the exposure to
loss in respect to the risk concerned, but
independent to the actual claims experience of
that risk.

These are typically those risks where the
occurrence of a loss is an uncommon event or
where there are very few data to statistically
support rating. The exposure rating may be
derived from rates of similar risks in other
markets or may be based on hazard evaluation
done for risk management. E.g insurance for
earthquake risks, public liability insurance for
hazardous occupancy etc. (c) Insurances of large
risks - Large risks are insurances for total sum
insured of Rs 2,500 crores or more at one
location or Rs 100 crores or more per event for
liability insurance.

This are typically those insurances that are designed
for individual large clients and where the rates, terms
and conditions are determined by referring to the

Sashi Publications - www.sashipublications.com 211

Copyright@ The Insurance Times. 09883398055 / 09883380339