What is the Claims Process in a Fire Insurance Policy?

Claims Process in a Fire Insurance Policy

A fire accident can bring your factory to a standstill for several months or even years. During this time, the business not only suffers from damage to various assets but also from the loss of profit as you will be unable to run the business due to damage to the plant and machinery.

Fortunately, there are adequate insurances available to protect yourself in such a scenario. A Fire Insurance Policy along with a Business Interruption Insurance Policy are extremely important to secure your factory assets.

There are many business owners who are not aware about the Claims Process in a Fire Insurance Policy. This article explains the Claims Process in a Standard Fire and Special Perils Insurance Policy in detail in case of a fire accident.

What is a Fire Insurance Policy?

A Fire Insurance Policy provides reimbursement to the Insured Party for any damage to the Insured Assets on account of Perils covered under the Policy. A Fire Insurance Policy provides coverage against various types of perils such as Fire, Explosion, Earthquakes, Storm, Tempest, Floods, Inundation etc.

You can read our detailed blogpost on coverages in a Fire Insurance Policy to learn more on various perils covered in a Fire Insurance Policy.

There are different types of Fire Insurance Policies in India and business owners should choose one depending on their risk exposures.

A Fire Insurance Policy is also known as a Standard Fire and Special Perils Policy (SFSP Policy)

What is the Claims Process in a Fire Insurance Policy?

If there is a fire accident on your insured property, the Insured should immediately follow these steps with regards to the Fire Insurance Policy:

Intimate the Insurance Company about a Claim in your Fire Insurance Policy

Once there is a fire accident on the insured property, the first step is to contact the fire brigade and the police immediately to help control the situation and minimize loss and damages. This is a crucial step which needs to be done immediately, because any delay in contacting the fire brigade can be used by the Fire Insurance Company against your claim as a deliberate delay.

The next step is to inform the Fire Insurance Company about the fire accident as soon as possible and to register a claim under the Fire Insurance Policy. You can register a claim under the Fire Insurance Policy by taking the assistance of your Fire Insurance Broker and submitting a proof of loss claim detailing the assets that were damaged or destroyed.

The Insured Party should provide the following information to the Fire Insurance Company in the Fire Insurance Claims Request:

  1. Date and Time of the Incident
  2. Location of the Fire Incident
  3. Loss or Damage to Assets
  4. Brief Description of the Fire Accident
  5. Any injuries sustained because of the incident
  6. Police FIR Copy

Estimate Total Losses under the Fire Insurance Policy

It is essential to submit an estimate of the total losses to the Fire Insurance Company. The Insured needs to create an estimate of the losses incurred following the fire accident and keep them ready before the surveyor visits your premises. The Insured Party should also ensure that:

  • Burnt Items are not disposed
  • Damaged Assets are not repaired without the approval of the Fire Insurance Company
  • Evidence of the damaged assets has to be preserved for the Surveyor

Surveyor’s Loss Estimation under the Fire Insurance Policy

Once a claim is registered under the Fire Insurance Policy, the Insurance Company appoints a surveyor who assesses the damage at the Insured Property. The claim estimation amount is based on the surveyor’s report. Hence, the Insured should fully co-operate with the surveyor to enable smooth processing of the Fire Insurance Claim.

Finally, the Insured needs to submit a completed claim form including the proof of loss like the photographs of the damaged property and the estimated repair cost based on the assessment made by an independent authority.

Ask For an Advance Against the Total Claim Amount

The Insured can also be eligible to get an advance from the Fire Insurance Claim Amount to deal with immediate expenses which need to be incurred following a Fire Accident as part of the Fire Insurance Policy. This advance amount is deducted from the total claim amount; hence the Insured should be careful to purchase only the essential requirements after confirming the advance amount with the Fire Insurance Company.

What are the Documents required to make a Claim under a Fire Insurance Policy?

The Insured needs to produce following documents to the Fire Insurance Company to make a claim under the Fire Insurance Policy:

  1. A Copy of the Fire Insurance Policy
  2. Duly filled Fire Insurance Claim Form
  3. Photographs of the Damaged Site
  4. Forensic reports
  5. Reports of the fire brigade (if necessary)
  6. Investigation report
  7. Police FIR Report
  8. Newspaper Report of the Fire Accident if available

Additional Documents Required in case of a Flood Claim

Metrological Report

Additional Documents Required in case of an Explosion Claim

Factory Inspector’s Report

Claims Assistance for Fire Insurance Policy!

The importance of a Fire Insurance Policy cannot be understated, and every business owner should secure the assets by purchasing a Fire Insurance Policy. The business owner should also make sure to include the appropriate add-on covers in his Fire Insurance Policy and should also read the exclusions in a Fire Insurance Policy thoroughly to ensure comprehensive Fire Insurance Coverage.

Qian is an experienced Fire Insurance Broker in India. We have tie-ups with top Fire Insurance Companies in India and can assist you with the best Fire Insurance Quotes. We would also be glad to assist you with your Fire Insurance Claims.

If you have any queries about your Fire Insurance Policy, we at Qian would be happy to assist. You can email us at insurance@qian.co.in or call us on 022-22044989.

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