Fire Claims

FIRE CLAIMS Praveen Thakkar

Praveen Thakkar

1 11/13/09

Introduction  Important

Elements of Claim  We will cover step by step procedure of Loss Assessment of a Claim under Fire Policy.  Any specific areas of Interest of any one relating to this can be discussed at the end of session

Praveen Thakkar

2 11/13/09

Agenda  Elements

of Claim: 1 Policy Coverage 2 Quantification of loss 3 Valuation of loss

Praveen Thakkar

3 11/13/09

Agenda….. Step

by step Loss Assessment 1.Value at Risk 2.Reinstatment or Depreciation 3.Salvage 4.Under insurance 5.Policy Excess & Apportionment Praveen Thakkar

4 11/13/09

Elements of Claim: Policy Coverage  Insurable

Interest  Policy terms and conditions  Cause of Loss  Policy Endorsements if any T e x t Praveen Thakkar

5 11/13/09

Elements of Claim: Quantification of Loss  Physical

Verification  Documents at site of Fire  Accounting documents and records  Review of Extent of damage and segregation in to category  Exercise to include damage and un damage property Praveen Thakkar

6 11/13/09

Elements of Claim: Value of Loss  Verification

of item rates  Verification of invoices and payments  Adjustments for improvements, modvat, non indemnifiable component of cost

Praveen Thakkar

7 11/13/09

Loss Assessment: Value at Risk  Compute

total value of affected and unaffected property for the affected policy block.  Adjustment wherever necessary e.g. Depreciation, Obsolescence, Expiry of date of use etc.

Praveen Thakkar

8 11/13/09

Loss Assessment: Reinstatement & Depreciation  Reinstatement

value provision applies to Fixed Asset i.e. Building, P&M, FFF etc. For stocks market value is the basis of loss  It is necessary to have endorsement for RIV clause for policy on RIV basis  Insured has choice to accept loss on RIV or Depreciation basis  Depreciation depends on nature of Asset, past history, condition at the time of fire Praveen Thakkar

9 11/13/09

Loss Assessment : Salvage  Items

sensitive to deterioration  Item needing immediate action  Insured is the best buyer

Praveen Thakkar

10 11/13/09

Loss Assessment : Under Insurance  UI

for Reinstatement Value  UI for Depreciated Value

Praveen Thakkar

11 11/13/09

Loss Assessment : Policy Excess  Excess

for Standard Fire Policy  Excess for Natural Perils  Any other as applicable

Praveen Thakkar

12 11/13/09

Your Questions Please? Thank you

Praveen Thakkar

13 11/13/09