A fire insurance policy has an average clause mentioned in it which takes care of the cases of under-insurance. If insured the assets in the fire insurance policy, for less than their full value, the insured requires to bear a proportion of the loss according to the average clause mentioned in the policy document. Since […]
What are the Moral Hazards in Fire Insurance?
The purpose of fire insurance is to offer you financial coverage in case of loss or damage due to fire. Further, a fire insurance policy comprises hazard, which is a condition that increases the chances of risk in an insured peril. There is a physical hazard and moral hazard; here we are talking about moral […]
What is 50:50 Clause in Construction All-Risk Insurance Policy?
As a building developer or contractor, it is necessary for you to safeguard your capital investments and work in progress or material which are bought for use in the project against various types of losses or damages. Here you will get a better idea about the 50:50 Clause in the construction of all-risk insurance policies. […]
How is Proximate Cause Determined in a Fire Insurance Policy?
Proximate Cause is an important principle of insurance, which helps in deciding how the loss or damage happens and whether it is the result of an insured peril or not. The important point to consider here is that the proximate cause is the only nearest cause and not the remote cause. It mainly revolves around […]
What are Some Items Typically Excluded From Property Insurance Policy?
Property insurance is an umbrella term that comprises various insurance policies like an office insurance policy, construction all-risk policy, engineering all-risk policy, factory & warehouse insurance, motor fleet insurance, art insurance, etc. So, What are some items excluded from Property Insurance Policy? Though, the purpose of property insurance is to offer complete coverage against various […]
What is Claims Series Clause in Construction all Risk Policy?
As per the claims series clause in Construction all Risk Policy, where a series of losses or damages or bodily injuries and deaths happen due to factors that are directly or indirectly related, then claims for such losses shall be added together and treated as one claim. We consider such claims as made at a […]
What to Do Under an Office Insurance If An Insured Person Meets With An Accident?
Office package policy also has provisions for personal accident cover for the insured. All provisions of personal accident cover offered in the office package policy are similar to a standalone personal accident policy. Meaning, the following are covered: Death due to accident Permanent Total Disability Permanent Partial Disability Temporary total disability Hospitalization expenses incurred due […]
Different Principles Applicable to Different Types of Fire Insurance Policies
A fire insurance policy compensates the policyholder for the loss or damage that arises due to fire. It gives financial security to the insured by shielding him/her from losses or damages caused by fire. There are some principles or fundamental doctrines of Fire insurance guiding different types of fire policies under its purview. Various principles […]
What is the economic importance of contractor’s all-risk insurance?
The construction all-risk insurance policy plays an important role in the economy by providing stability to the functioning of the process. Following is the economic importance of a contractor’s all-risk insurance policy: Provides Security Construction projects are massive, and they include big numbers. Hence, any loss or damage to the property may result in some […]
How are assets valued under a property insurance policy?
The purpose of a property insurance policy is to help a policyholder gets a replacement for lost or damaged goods. However, to make extensive use of the policy, it is inevitable to know how are assets valued under a property insurance policy. Let’s look at different ways on the basis of which assets are […]