Page 166 - Misc Ebook IC 78

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Q2. Write a detailed note on Burglary First Loss
Insurance including the following aspects :

Ans.
(i) Type of property - 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.

(ii) Fixing of sum insured - 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

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