Given below are the steps you need to follow to file a claim under factory and warehouse insurance:
- Inform the Insurer: You will need to inform the insurer about the incident and the approximate loss incurred due to various factors mentioned in the policy.
- Complete the Claim Form: You might need to fill out a form to file your claim. Necessary documents or proofs might need to be attached to the form. Photographs and other similar receipts of purchasing would work as valid proof.
- Assessment Officer: If the insurer deems it necessary, he might visit your workplace. Inspection is an integral part of this process and this requires your full corporation.
- Fitment of Claim: If your claim is found to be fit by the insurer and the proofs are considered adequate, your claim will be accepted and you shall be asked to wait patiently for your fund.
It is important to note that there are various exclusions from the policy for example gradual deterioration of the factory due to factors like pollution or seepage.
In addition, your inability to corporate or misdemeanour on your part might lead to the annulment of the claim.
During inspection or investigation, if the assessor finds the cause of damage is gross negligence or a willful act or misconduct, the insurer will not entertain the claim request.
Case on Factory & Warehouse Insurance Claim
Mr Sharma was an owner of a steel factory. His workers used to overlook the everyday tasks because he seldom visited the place himself. He had his workplace insured under the factory and warehouse insurance policy.
Mr Sharma visited his factory to negotiate with some agitating workers. He found that they had damaged one of the installed transformers. They even tried to start a fire, which the guards extinguished with some effort. After the arrest of errant workers, he decided to file a claim with the insurer for the damages.
However, during the inspection the factory inspector found the damage to have been due to strike and rioting of the workers and favoured the claim for the damaged instrument, but an additional claim of damage to the goods due to restarting of the damaged transformer was rejected.