Page 26 - RMAI July-September 2018

July - September 2018

business premises policy covers not only loss of the “fire” insurance in view of both the elements
insured property, but also damages to such property 'ignition', and 'accident' being present. In other
and damage to the premises caused by burglars. words, there is said to be a fire within the meaning of
Cash Insurance : For covering loss of cash whilst it is in fire insurance when – (a) there is actual ignition, (b)
transit or at counters or in the safe. The policy may be the property is one which ought not to have been on
extended to cover infidelity of employees as also riot, fire, and (c) the fire is purely accidental or fortuitous in
strike and terrorism perils. original, as far as the insured is concerned.

Engineering Insurance : Insurance protection is Direct consequences of Fire covered under the scope
available for construction, erection, commissioning, of Fire Policy are (a) Damage during or immediately
test run, operation, expansion etc of a plant, following a fire caused by (i) smoke (ii) scorching (iii)
machinery or equipment. Provides coverage for own falling walls (b) damage caused by Fire Brigade in the
damage as well as to surrounding property, coverage discharge of their duties e.g., (i) Damage caused by
for bodily injury to employees, to the third parties etc. water, and (ii) Damage caused by flowing up the
Engineering Boiler Explosion Insurance is for steam property to prevent spreading of fire, and (c) Damage
generating vessels like boilers, economizers, super- to property removed from a burning building caused
heaters etc. Contractors' All Risks Policy is designed to by exposure to weather provided the removal was
protect the civil contractors against the damage to or made in an endeavor to mitigate the loss.
destruction of various civil engineering projects Standard Fire and Special Perils Policy (Material
undertaken by them which includes accidental Damage) covers perils of fire excluding destruction or
damage to civil construction works. Contractors Plant damage caused to the property insured by (a-i) its
and Machinery insurance is for construction Plant and own fermentation, natural heating or spontaneous
Machinery which are essential used at project sites. combustion (a-ii) its undergoing any heating or drying
Machinery Breakdown Insurance cover is available to process and (b) burning of property insured by order
take care of the loss of or damage to plant and of any Public Authority.
machinery due to accidental failure caused by
Marine Insurance : The business of effecting contracts
electrical or mechanical breakdown. Deterioration of
of insurance upon vessels of any description,
Stock insurance (Refrigeration Plant Insurance) is a including cargoes, freights and other interests which
follow up cover to Machinery Breakdown Insurance
may be legally insured, in or relation to such vessels,
and cover deterioration of goods stored in cold
cargoes and freights, goods, wares, merchandise and
storage which might arise due to a breakdown of property of whatsoever description insured for any
refrigerating machinery.
transit by land or water, or both, whether or not
Engineering Electronic Equipments Insurance including warehouse risks or similar risks in addition
provides all risks protection for loss or damage to to or as incidental to such transit and includes any
electronic equipments such as computers, telephone other risks customarily included among the risks
exchanges and equipments used in business, insured against in marine insurance policies. In
hospitals, audio-visual equipment.
common language the cover is available for exports,
Fire Insurance : Fire connotes actual ignition under imports and inland transits of raw materials, plant,
accidental or fortuitous circumstances so far as its machinery and accessories and finished products,
coverage under the fire insurance is concerned. vessels and freight and such other interests.
Spontaneous combustion, fermentation or heating or
Motor Insurance : For covering the vehicles against
scorching without ignition is not a fire. A fire lighted theft, accidental damage and third party liability.
for a definite purpose, say, for warming or
Insurance of Liability :
manufacturing is not a fire as understood in the fire
insurance parlance if it is confined within its own Directors and Officers Liability Insurance :
limits. If such fire breaks out of its bounds and ignites The Directors and Officers of Companies may become
other property, then the loss is within the scope of liable to pay damages for wrongful acts such as failure

RISK MANAGEMENT ASSOCIATION OF INDIA 25