Property Insurance

Policies include Bharat Griha Raksha, Bharat Sookshma Udyam Suraksha, Bharat Laghu Udyam Suraksha, Standard Fire & Special Perils, Burglary & House Breaking, All Risks Policies, and package policies for house owners and shopkeepers.

Sum insured can be fixed based on Market Value (MV) or Reinstatement Value (RIV). MV accounts for depreciation, while RIV covers the cost of replacement without depreciation. RIV is typically allowed only for fixed assets, not for stocks or stock in process.

The cost depends on factors such as the perils covered, value of items, usage of premises, location, building construction, and occupancy. Premium rates may vary between insurers.

Industrial units or offices maintain books of accounts showing asset values. For dwellings, one should take stock of assets under categories like furniture, fixtures, clothing, electronics, etc., to determine the sum insured.

Fire and other perils can cause significant damage to buildings. Multi-storey buildings have been completely destroyed by fire, floods, riots, or acts of terrorism. Insuring your building is crucial to protect against such losses.

Yes, you can request cancellation. If you cancel, the insurer will retain premium on a short period scale and refund the balance. If the insurer cancels, a pro-rata refund will be given.

Take precautions to prevent or aggravate the loss, inform the insurance company and fire brigade, cooperate with the surveyor, shift unaffected assets to safety, and submit a completed claim form and required documents.

No. Compensation is based on the current market value or reinstatement value of the property. Over-insuring results in unnecessary premium payments, while under-insuring leads to proportionate compensation.

Generally, fire insurance does not cover items like jewellery, ornaments, art works, etc., unless specifically requested and subject to valuation.

Each insurer will pay the loss amount in proportion to their respective policies. The principle of indemnity ensures the insured is compensated for actual loss only, not for profit.

Salvage refers to partly damaged goods or wrecks that become the property of the insurer after settling a claim. The amount realized through salvage disposal offsets the insurer’s losses.

A Marine Cargo policy covers goods against transit risks. You can choose a ‘Basic Cover’ or an ‘All Risks’ cover for broader protection.

This depends on the sale contract terms (e.g., FOB, C&F, CIF). Responsibility for arranging insurance varies accordingly.

An ‘All Risks’ policy covers jewelry. Ensure correct valuation and proof of valuation for claims.

Yes, a burglary insurance policy covers goods against burglary risk. Ensure continuous coverage and inform the insurer if the house is unoccupied for an extended period.

As per the MSMED Act, 2006, micro enterprises have investments in plant and machinery up to Rs. 25 lakh, small enterprises up to Rs. 5 crore, and medium enterprises up to Rs. 10 crore.

Depreciation in insurance refers to the reduction in the value of an insured item due to factors such as age, wear and tear, and obsolescence. When calculating the payout for a claim, insurance companies take into account the depreciation of the insured item to determine its current market value or actual cash value (ACV). This means that the payout may be less than the replacement cost of the item.