9. Fire Consequential Loss Policy Tariff This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and pursuant to the answers given in the Insured’s Proposal Form (or when the Insured applied for this insurance) and any other disclosures This policy provides you with coverage for loss of pro˜ts, standing charges, wages or salaries on payroll basis and increase in cost of working due to business interruption as a result of ˜re and/or other extended perils. Fire Consequential Loss insurance covers loss of profit upon business interruption due to fire or other extended perils covered under the Standard Fire policy. Be sure to also read the general terms and conditions. Fire Hydrants/Hosereels (Yes/No) Sprinkler System (Yes/No) Fire Extinguishers (Yes/No) Fixed C02', Others (i.e. Insurance MCQ Personal Lines Insurance When property is damaged by fire, the loss is said to be a(n) _____ loss. Is there any back up Water Supply available? Knowledge Centre Whatsapp us on 73045 24888 Contact Us This optional extension to the Fire Insurance Policy is protects you in such a situation. You may have to shut down your business temporarily to repair the damages. 3. Question papers Insurance Institute of India. Multiple Choice Questions Department of Financial Services. Product Info . If loss consequential to the loss of stock is also insured, the policy is known as loss of profit or consequential loss policy. Code: Fire 02 . FIRE CONSEQUENTIAL LOSS INSURANCE POLICY TARIFF . Fire & Consequential Loss Insurance: Basic Principles and the Fire Policy; Add On Covers and Special Policies; Fire Hazards and Fire Prevention; Erstwhile Tariff – Rules and Rating; Documents; Underwriting; Claims – Legal & Procedural Aspects; Consequential Loss Insurance… Fire Consequential Loss Insurance. If there is no loss, there is no liability even if there is fire. This policy cover against losses resulting from the interruption of or interference with the trading or business activity caused […] Mcq On Fire Insurance related files: Insurance Multiple Choice Questions Flashcards by Jeremy IC 57 FIRE AND CONSEQUENTIAL LOSS INSURANCE CHAPTER 4 amp 5 INSURANCE LAW PRACTICE Insurance MCQ Questions and Solutions with Explanations FIRE AND SAFETY QUESTIONS FIRE AND SAFETY MULTIPLE CHOICE Chapter 1 GENERAL PRINCIPLES OF INSURANCE 2000: Add to Cart: IC-66: Marine Insurance Claims SmartPractice Mock Tests (500 MCQ) Last updated: May 2020: Rs. Be sure to also read the general terms and conditions.) There­fore, Insurance Company generally insists on taking a policy for Loss … Gross Profit is defined as the sum of Net Profit and insured standing charges. The loss of profit can be insured against by “Loss of Profit” or “Consequential Loss” policy. You are required to compute the consequential loss claim. 2000: Add to Cart: IC-60: Marine Cargo Insurance SmartPractice Mock Tests (500 MCQ) Last updated: May 2020: Rs. Insurance Times is pleased to announce the launching of Guide Book for Fire & Consequential Loss Insurance (IC57) for Associateship exam Non Life of Insurance Institute of India. Consequential Loss/Business Interruption insurance covers your losses due to business interruption, and fans assurance for the future. So when the average clause applies, the Net claim for loss of stock shall be calculate by applying following formula: Types of Fire Insurance in India. This insurance must be taken up together with the fire (material damage) policy. During this time, our Fire Consequential Loss Insurance policy will cover the losses caused by business interruption following a fire, so you can safeguard your business while you work on getting it back on track. Personal Lines Insurance. This policy cover against losses resulting from the interruption of or interference with the trading or business activity caused by fire, lightning,  Following is a list of the broad exclusions and inclusions of the policy. No Consequential Loss (Fire) Insurance Policy may be issued except under the standard terms and conditions or at rates lower than the rates provided in this Tariff without the specific approval of the Tariff Advisory Committee. Fire Protection: Please detail the Fire Protection which exists at the situation: 9.2. The Consequential Loss (Fire) Insurance policy is an extension of the material damage policy for protection against consequential damages caused by a fire. 3) Contract of Indemnity: Fire insurance is a contract of indemnity and the insurance company is liable only to the extent of actual loss suffered. We clarify the differences between consequential loss and consequential damage with real-life examples, so it’s easy for you to explain policy exclusions to clients. Any loss under the material damage policy will affect the business interruption insurance as this will lead to interruption in the business in terms of loss of production, sales and consequently earnings. When the loss is caused by an "act of God" It’s only a difference of two words – loss vs. damage – but it can be very confusing for your car insurance clients to understand. Ratio = Gross profit X 100 Sales **Average Clause: When value of estimated stock at the date of fire is greater than the value of stock insured for loss of stock policy with the insurance company then Net Claim shall be proportionate to the Stock insured. fire consequential loss insurance A relief for a new beginning. T he Consequential Loss Policy contains a Material Damage Proviso which states that a claim must be admitted in the Fire Policy before the loss in the Consequential Loss Policy is payable, as such a Fire Insurance policy must be in place in the event a claim arises. The unfortunate event of a fire may cause further financial losses as a result of the loss of your physical assets. What is this product about ? 3. Read this Product Disclosure Sheet before you decide to take up the Fire Consequential Loss Insurance Policy. Never. Fire and Consequential Loss Insurance SmartPractice Mock Tests (650 MCQ) Last reviewed: May 2020: Rs. Always. Also known as consequential loss insurance, Fire Business Interruption Insurance provides indemnity to the insured in respect of loss of profit. Insurance claim can be studied under two parts as under:-• Claim for loss of stock • Claim for loss of profit 2. When property is damaged by fire, the loss is said to be a(n) _____ loss. overview fire consequential loss is property insurance that protects your business from loss of profits, rental, or standing charges or increases in the cost of working due to business interruption following a loss to fire … What is this product about? Such loss cannot be covered under fire policy. Consequential Loss (Fire) Insurance Policy Page 1 of 11 Bajaj Allianz General Insurance Company Limited GE Plaza, Airport Road, Yerewada, Pune-411006, Reg. A fire might do very little damage to the buildings or the contents, yet the interruption of business might be very significant. There are also instances where some type of direct damage occurs that in turn triggers some type of consequential loss. 113 CIN: U66010PN2000PLC015329 CONSEQUENTIAL LOSS (FIRE) INSURANCE POLICY ANNEXURE ‘A’ … 2. Insurance Claims: Problem and Solution # 15. MEANING OF FIRE For purposes of insurance, fire means: 1. Coverage: consequential loss policy This Policy is issued in consideration of the payment of premium as specified in the Policy Schedule and pursuant to the answers given in the Insured’s Proposal Form (or when the Insured applied for this insurance) and any other disclosures made by the Insured between the time of submission of the Insured’s Fire and Special Perils Policy compensates only for Material Damage to the insured property. In case of a major loss caused by Fire, there could be an interruption in business operation leading to reduction in turnover finally resulting in possible loss … This website uses cookies and you agree to our use of the same if you continue browsing. Example: If the property is insured for Rs 20 lakhs under fire insurance and it is damaged by fire to the extent of Rs. Normal G.P. This guide will be very helpful for candidates appearing in this examination. Tags: Previous year Solved Papers, Exam papers, Question papers, Question And Answers. What is the source of the Water Supply at the situation? Hence, for complete protection to the business enterprise and its profitability, Consequential Loss Insurance is very essential in addition to Fire Insurance. Insurance Act defines fire insurance as follows: ―Fire insurance business means the business of effecting, otherwise than incidentally to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies.‖ Allianz helps you to resume your business operation after a fire accident. Page 2 of 6 For this purpose an act of terrorism means an act, including but not limited to the use of force or violence and/or the threat thereof, of any person or group(s) of persons, whether acting alone or on behalf of or 1. When the loss is to insured property that has be removed because of endangerment by a peril insured against under the policy. On the premise of the necessities, the following types of fire insurance policy can be availed, which are: Specific Policy: Under this policy, for a certain property, a specified sum insured is determined and in case of any loss, the compensation will be provided for the loss provided it is less than the determined amount. Sony Ltd.’s Trading and Profit and Loss Account for the year ended 31st March 2011 were as follows: The company had taken out a fire policy for Rs 3,00,000 and a loss of profits policy for Rs 1,00,000 having an indemnity period of 6 months. Consequential Loss Insurance compensates for the revenue loss suffered by the enterprise. Consequential Loss Fire Insurance by HDFC ERGO helps protect your business by covering property damage and losses you incur to your business following a fire. The insurer rarely admits a claim for consequential loss without admission of liability for loss of assets by fire. 4. INSURANCE CLAIMS FOR LOSS OF PROFIT AND LOSS OF STOCK. MCQ Objective Guide Book for FIRE amp CONSEQUENTIAL LOSS. It specifically excludes any consequential loss. Insurance Claims Papers. The Sum Insured is based on the gross profit of the business. When property is damaged by fire, the loss is said to be a(n) _____ loss. However, the following is only a list of mains and for a complete exhaustive list you must read the policy wordings - no. A natural disaster such as a flood or fire would create a great deal of property damage.This direct damage would be covered under flood or fire insurance, allowing the business to repair the interior and exterior of the damaged building or buildings. PRODUCT DISCLOSURE SHEET (Please read this Product Disclosure Sheet before you decide to take up the Fire Consequential Loss Insurance. Deluge, Halon, Inergen ,FM200(R) etc. SELF TEST QUESTIONS Multiple Choice Questions. 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