Page 28 - RMAI July-September 2018

July - September 2018

connotes a form of Profit Insurance which, in II. Inform about loss to the Policy Issuing Office over
principle, follows the characteristics of Consequential telephone, mobile, whatsApp, mail, fax giving details
Loss Policy but is issued in advance of actual of the occurrence, estimate of loss and the Policy
commencement of business. The financial Number.
consequences of this stoppage or interruption of any III. Write in detail about claim to the insurer as soon as
earning or manufacturing operation normally leads to possible (at the most within 14 days)
delay of commissioning of a project under erection
IV. Submit duly completed claim form
and may effect – (i) liquidity, (ii) profitability, and (iii)
V. Cooperate with the appointed Surveyor /
growth. Advance Loss of Profit cover offers protection
Investigator for completing the survey/investigation
in respect of fixed cost/standing charges, estimated
net profit, loss and increased cost of working as a and assessment of the loss.
result of an insured peril occurring during the period VI. Preserve the damaged items for survey
of insurance, subject to the initial time exclusions in VII. Give immediate notice to such parties who may
the policy. have been responsible for happening of the loss or

Guidelines for Policy Holders on issuance of Policy damage to the property in order to protect the
Documents: recovery rights.

1. Verify the policy documents issued by the insurers. VIII. Give details of other insurances if any affected on
Check whether the same covers all the properties and the property and in force at the time of loss.
the perils which were intended to be insured. IX. Quote Policy number in the initial communication

2. Check the values declared for insurance. It may be and Claim number in subsequent communications.
on market value or on reinstatement value. In case of X. Wherever any criminal action/death or bodily
fixed assets, the policy can be extended to get injury to any person is involved, Police authorities
indemnity on Reinstatement Value basis. The sum should be informed immediately.
insured should represent the cost of reinstatement as XI. In case of fire, Fire Brigade to be advised
on date of reinstatement. immediately
3. Revise the values to offset inflation and exchange XII. In case of Personal Accident immediate notice
rate fluctuations. should be given to the insurer.
4. Inform the insurers of any additions, alterations XIII. In case of Hospitalization immediate details of
immediately and get the Policy suitably endorsed by insurance policy to be provided to Hospital for
paying additional premium, if required. obtaining cash-less facility.
5. Maintain electrical installation and Fire Fighting XIV. In case of liability claim, no reply to be given in
Equipment in conformity with the regulations. response to any notice without the prior written
approval of the insurers.
6. Take a note of renewal date and send renewal
instructions to the insurers in advance with the XV. In case of Act of God claim, obtain necessary
premium to ensure continuous insurance protection. Meteorological Report from local or nearest
meteorological office.
Managing the Business Insurance Claims :
XVI. In case of theft claim inform to Police Authority
Requirements in respect of Claims in any Business and obtain First Information Report as also court
Insurance Policy:
approved Final Report.
In all cases of occurrence of events which may result Regardless of organizations' size and trade / business
in loss or damage to the insured property and may or industry category, all organizations share one thing
result in a claim, the insured must :
in common – the realization that the complexity of
I. Take steps to protect the property from further the modern world demands responsible planning for
damage. the future.

RISK MANAGEMENT ASSOCIATION OF INDIA 27