Page 10 - Misc Ebook IC 78

The Insurance Times

Q1. (a) What is Burglary First Loss Insurance ?
Explain in details aspects of rating, fixing
the sum insured, types of property
covered and application of condition of
average under this insurance.

(b) List out the questions which appear in a
Burglary Insurance Claim Form.

Ans.a) First Loss Insurance is not a full value insurance. The
Sum Insured under this insurance represents a maximum
probable loss of the property that might be possible to
be burgled. Burglary beyond this limit would be
practically impossible. For certain bulk commodities
stored in loose like sulphur, rock phosphate, very heavy
machineries etc, the total loss for them is practically
impossible.

The proposer, in these cases chooses a maximum
probable percentage of the full value of the property as
the sum insurance beyond which there is almost
negligible chance of burglary. If the insurers agree to
such a request, a First Loss Policy is issued. The policy
insures the property for a specific sum only, which is

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