Page 99 - Misc Ebook IC 78

Miscellaneous Insurance

populated areas are safer and hence better risks
than those premises situated in lonely areas.

(iii) Occupancy - if the premises is occupied throughout
the year there is less chance of burglary and hence
is a better risk than an unoccupied premises. If
unoccupied for few hours of the day then those hours
need to be mentioned.

(iv) Safety measures-adequate measures taken for the
safety of the insured property is a better risk than
the premises where there are no such measures
taken. The presence of a security guard or watch
man improves the quality of risk.

(v) Past history - the past claims history and insurances
history gives a fair idea about the risk.

Q2.b) Explain the circumstances under which 'first
loss' policies are issued by an Insurer in
burglary insurance.

Ans. 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

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