Fire Insurance

What are the principles of fire insurance?

• Indemnity - It covers loss compensation only.
• Proximate cause - The accurate reason for the fire.
• Insurable interest -Proof that the policyholder is the owner of the property/belongings

Fire is a type of peril that causes financial loss and If you invest in standard fire insurance usually there are other perils covered too with it like a flood, storm, etc. This is a comprehensive type of insurance usually for factories or other businesses.

Who should take Fire Insurance?

Anyone who has an insurable interest in their property or belongings.

If you have taken property fire insurance for your factory, the coverage will Include the stock that's in it, and the structure only if you are the owner.

If its a rented property, the structure of the building will not be insured by your policy as there wouldn’t be an insurable interest

For any rented accommodation, the landlord is responsible for the structural damage

If you are taking loans, make sure to ask for insurance for the structure of the property too as banks usually ask if the structure is insured too.

What is covered under Fire Insurance?

1. Factory -

• Electrical installations like Machinery
• Stocks - finished good, semi-finished goods, and Raw material
• Other types of equipment

2. Home insurance - All personal belongings except expensive and precious items

3. Shops and hotels - furniture and stock

Which is not covered under fire insurance?

1. Earthquake
2. War
3. Terrorist
4. Caused by the Third-party - for example, your factory is on the ground floor and the fire was caused by someone of the first floor

PS - But these perils can be bought as a rider along with a standard fire insurance policy.

Pro Tip-

• You should be aware of the items you wanna cover so that you could calculate      the value of your belongings.
• Proof of insurable interest (ownership) should be there
• It's important to have fire safety equipment too, the quality of which would      also help you get a lower premium.

Things to declare

1. You would need to declare the kind of products that you want the insurer to secure, depending on which the premium will be decided, flammable materials premium would cost a lot more.
2. You would have to declare the previous loses you have had too,

Always take insurance equal to the value of the items you want to insure.

For instance, your Stock value is Rs 2 crore for which you took insurance of Rs 1 crore. You suffered a loss of 50% and because you took 1 core, ideally you should get Rs 50 lakh, but insurers work on a pro-rata basis. Since you have insured only half of the stock, your loss will be compensated for 50% too.

Hence, You will be entitled to get Rs 25 lakhs

Therefore, it's very important to cover the entire stock and not only a part of it.

Important Documents for Fire Insurance

• Fire department report
• Police report - this is crucial evidence that explains the cause of the fire
• Panchanama report - damage
• Evidence to establish the value of the stock
• Surveyor report

Once you inform your insurance company, they send a surveyor who makes a report, this Surveyor report is very important to evaluate your loss.

And if you have any objection with their report, you can also submit an objection letter to your insurer (Insurance samadhan can help you with this, click here to register)

Within 30 days of the surveyor visiting you, a discrepancy report for further information or claim acceptance will be sent to you.

Sometimes, the claim is not as per what you thought it would be, and it’s important to know that the offer you get from your insurer is not the final ultimatum, you don't have to accept it if you think you deserve better and we at insurance samadhan could help you with that too!

Register here if you have difficulties in raising complaints or claiming your money!

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here

When to buy a term insurance?

Term insurance plans are one of the best investment instruments that can be beneficial if you want to guarantee financial soundness for your family after your death. Every insurance company offers a range of term insurance options to choose from, each of them specially designed to suit the individual needs of every investor. A very valid question that often plagues investors is- when is the right time to buy term insurance plans? What makes this question all the more crucial is that most potential investors are oblivious to the prospects of early investments in term plans. The widespread notion is that term insurance plans are an excellent investment if your age is above 35 years, since they are well-settled by then. However, it is quite a misconception. On the contrary, the earlier you start investing in term insurance plans, the better it is. By investing in a good term insurance plan at a young age, you will have to incur lesser premium payout. Good investors usually Invest early in term insurance as their main goal to reap as much benefits as possible. Yet another reason in favor of starting early is that there are lesser diseases to riddle you. On the other hand, the older you get, the higher are your chances of being afflicted by various diseases, which in turn, lead to a rise in your premium. Let us take a look at the implications of availing term insurance plans at different stages of your life:

1.       Early twenties and unmarried: since in today’s times, most people choose to marry late, they are an added income to their existing families. Their expenses are much less, which makes it a conducive time to create a financial cushion for their later years. Another advantage is that, term insurance at this phase is quite affordable, and aids in tax-saving.

2.        Term insurance plans are one of the best investment instruments that can be beneficial if you want to guarantee financial soundness for your family after your death. Every insurance company offers a range of term insurance options to choose from, each of them specially designed to suit the individual needs of every investor. A very valid question that often plagues investors is- when is the right time to buy term insurance plans? What makes this question all the more crucial is that most potential investors are oblivious to the prospects of early investments in term plans. The widespread notion is that term insurance plans are an excellent investment if your age is above 35 years, since they are well-settled by then. However, it is quite a misconception. On the contrary, the earlier you start investing in term insurance plans, the better it is. By investing in a good term insurance plan at a young age, you will have to incur lesser premium payout. Good investors usually Invest early in term insurance as their main goal to reap as much benefits as possible. Yet another reason in favor of starting early is that there are lesser diseases to riddle you. On the other hand, the older you get, the higher are your chances of being afflicted by various diseases, which in turn, lead to a rise in your premium. Let us take a look at the implications of availing term insurance plans at different stages of your life:

1.       Early twenties and unmarried: since in today’s times, most people choose to marry late, they are an added income to their existing families. Their expenses are much less, which makes it a conducive time to create a financial cushion for their later years. Another advantage is that, term insurance at this phase is quite affordable, and aids in tax-saving.

2.       Mid/late twenties and married: this is a crucial stage, as you have just embarked on, or are soon going to start a new journey of life. If you are a newlywed, this is the perfect time to invest, which will pave the way for reliable financial backing for your family which is bound to grow over the course of a few years. However, note that at this phase the term insurance plan should have more coverage as compared to your previous investments. With the growing responsibilities of a parent, you need to spare ample thought to your children’s education, extra-curricular activities, medical expenses, and so on. Make sure that your long-term debts are covered and you get enough security for yourself and your family with a higher protection term policy.

3.       Retirement plans: although this is quite an unfit time to buy term insurance plans, once your kids get into college or begin to pursue higher education, it is always advisable to start planning for your twilight years. You can settle for a few good pension plans that will secure funds for you and your lifestyle once your retired life begins. You should also take into consideration that in the event of your premature demise, how your family will support their lifestyles. this is a crucial stage, as you have just embarked on, or are soon going to start a new journey of life. If you are a newlywed, this is the perfect time to invest, which will pave the way for reliable financial backing for your family which is bound to grow over the course of a few years. However, note that at this phase the term insurance plan should have more coverage as compared to your previous investments. With the growing responsibilities of a parent, you need to spare ample thought to your children’s education, extra-curricular activities, medical expenses, and so on. Make sure that your long-term debts are covered and you get enough security for yourself and your family with a higher protection term policy.

3.       Retirement plans: although this is quite an unfit time to buy term insurance plans, once your kids get into college or begin to pursue higher education, it is always advisable to start planning for your twilight years. You can settle for a few good pension plans that will secure funds for you and your lifestyle once your retired life begins. You should also take into consideration that in the event of your premature demise, how your family will support their lifestyles. 

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here

How Can You Safeguard Yourself from Insurance Related Fraud?

Insurance related fraud is a problem that is rearing its head in India and the number of instances is only going up regularly. The commonest way of deceiving people is when scamsters pretend to be representatives from the IRDA. These people usually masquerade as representatives of the IRDA (Insurance Regulatory & Development Authority). Existing life insurance customers are called by these fraudsters and told that they can get an IRDA bonus for their policies but have to buy a new policy in order to get this bonus after a few months.

Watch this Video and know how to identify Insurance Fraud Calls

This is totally fraudulent. There are no such bonuses given by IRDA and it is not engaged in selling insurance policies or other financial schemes. In case you get these calls, immediately file a complaint to the Police Station while providing all details of the phone call you received. Do not have blind faith in your insurance agent. Always conduct an extensive background verification, particularly of his/her unique code. This is given by the IRDAI for every agent/broker who is authorized. Life insurance plans are never recommended to customers by the IRDAI and switching between plans is something that is avoidable.

Always have a copy of personal identification cards and documents of your insurance agent along with the number, contact number and address along with all necessary policy papers. Do not leave vital policy documents in the hands of your insurance agent. Always make sure that insurance premium payments are made via demand draft, cheque or online payments. Cheques should never be made out in the name of the insurance agent and do not pay any premiums in cash. You should directly issue the cheque in the name of the insurance company. 

To reach us at InsuranceSamadhan.com –

Call us at – 844 844 0626

Mail us at – corporate@insurancesamadhan.com

Register your insurance complaint here