Property Insurance

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If a misfortune befalls, take the following steps immediately:

  • Inform losses or damages immediately to the insurance company so that a competent surveyor can come to ascertain total losses
  • Give the estimated figures of damages
  • Give full corporation to surveyors by giving them all the necessary documents for assessment of the loss
  • Corporate with the insurer or their surveyor in all their activities of entering the premises, taking possession of properties, sorting, removing, etc.; without prejudice
  • Give information about all other insurance policies existing on the properties at the time of loss

Common documents required for filing claims under a Standard Fire and Special Peril Policy are:

  • Duly certified copy of the insurance policy along with the schedule and endorsements
  • Duly filled claim form
  • Newspaper report on the incident, if there is any
  • Photographs
  • Previous claim experience

In case of fire claim, here are some additional documents which are required:

  • Report submitted by the internal committee, which was constituted for investigating the cause of fire
  • Fire Brigade report
  • First Information Report (FIR)/Letter of intimation to the police station duly endorsed/Police Panchnama
  • Forensic reports on samples collected from the affected site
  • Final Investigation Report (FIR)

Flood Claims (additional document)

  • Metrological Report

Explosion Claims (additional document)

  • Factory Inspector’s Report

A claim for loss by fire must satisfy the following conditions:

  • The loss should be caused by the actual fire or ignition and not only by the high temperature
  • The ignition must be of the goods or of the premises where the goods are kept
  • The fire must be accidental and not intentional

Please note, the information given above is not exhaustive and therefore, you should contact the insurer or read the policy document for more information.

See – what is covered under a Fire Insurance Policy

Case Study

Rajesh had a flourishing cloth business in Surat when unfortunately a fire erupted in his factory last month and engulfed stock worth of crores. As the fire started during working hours, four workers also got injured in the accident. Rajesh appointed a three-member committee to know the reason of the fire and compute total loss. As he had a fire insurance policy, he approached the insurer to file a claim. On receiving the claim request from Rajesh, the insurer appointed a surveyor who visited the mill to know the extent of the damage. The surveyor talked to workers and fire brigade officers also to ensure that it was merely an accident and not the intentional activity. The surveyor submitted its report to the insurer who asked Rajesh to submit documents like fire brigade report, the final report of the three-member internal committee, a copy of the FIR, etc. The insurer carefully analyzed all the documents along with the surveyor’s report and settled the claim accordingly.