Property Insurance

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The declaration policy is designed to give better protection in cases where the stock fluctuates from time to time. Under the declaration of fire insurance policy, the insured takes out insurance for the maximum amount. And, which he considers would be at risk during the period of the policy. On a fixed date of every month or a specific period, the insured furnishes a declaration of the amount.


The paid premium is provisional to 75% of the annual premium amount. The determination of the exact annual premium is on the average of these declarations; If the premium is higher than the provisional premium already paid. Then, the insured has to pay the difference to the insurer. On the other hand, if the premium so calculated turns out lesser than the premium already paid, they would return the excess to the policyholder.


The declaration must be made on a specified day or within the next 14 days. Otherwise, would consider the sum insured as the declared value.


The great advantage of the Declaration fire insurance policy is the limitation of premium to the actual amount at risk irrespective of the sum insured. The value of risk is the average of each day of the month or the highest value of risk during the month. So, the adjustment of the Premium is at the expiry of the policy.


A declaration fire insurance policy is not available for

  1. short period,
  2. stock in process, and
  3. stock at the railway siding.


The policy would issue only to reputed concerns as declaration offers scope for fraud because the insured may pay a lesser premium by undervaluing the stock.