Fire insurance and its importance 2023 Fire insurance is one of the important insurance products offered by the insurance market to the public, as it plays a role in preserving their property and responsibilities towards others, as well as protecting public property by compensating for damages that occur in the wake of the insured dangers.
Fire insurance and its importance 2023The emergence of fire insurance began in Britain and Central Europe during the sixteenth and seventeenth centuries with the emergence of craftsmen and the formation of their own associations, where fire insurance at that stage was limited to helping the owner of the craft who wanted to protect his property from the fire from the damage it incurs.
Fire insurance and its importance 2023 In the wake of the industrial revolution and the emergence of new inventions and the transformation of industry from manual to automatic, and its need for protection from all damages, then the demand for insurance against fire risk increased.
Insurance against fire risk in Egypt has more than one form in the documents issued by companies, there are documents for insurance against the risk of fire first, which is the general fire document and it is issued for all property, whether factory, house, shop or office, and it covers damages caused by the effects of fire, and second These documents are a fire and additional dangers document, and the third one that includes a fire risk is the family protection document.
The fire insurance premiums in the last period for the year 2014/2015 amounted to an amount of 1353526 and increased in 2015/2016 to an amount of 1447700 by 106%, and the compensation in 2014/2015 amounted to 748504 and increased to 842550 by 112%.
Fire 10 insurance and its importance 2023 insurance.post1 Fire insurance and its importance 2023 The list of industries for which compensation for fire accidents was paid during the previous years also topped the list as follows:
Paper 15% and plastic by 14%, followed by foodstuffs by 12%, where electrical diamonds lead the causes of fire in those industries, followed by mechanical fire, then explosion and self-ignition.
There is no doubt that this requires the subscribers, before issuing the document, to ensure the availability of ventilation means and electricity wires, in addition to periodic maintenance, inspection and follow-up by industrial security, and the presence of general follow-up on cables and electricity connections, and the cooling of gas tanks.
The high degree of insurance awareness among individuals and the adoption of safety measures to preserve their property, especially after a number of them were exposed to fire accidents resulting from high temperatures or an electrical circuit.
Insurance experts stressed the need for insurance companies to follow some inevitable recommendations to reduce the size of losses in the fire insurance branch during the coming period. Clients with bad results in the fire insurance branch, in addition to the pivotal role played by the risk management in insurance companies, should study the possible results of insurance coverage for those industries, stressing the strictness of the reinsurers in accepting these documents.
Fire insurance and its importance 2023 It is worth noting that international reinsurance companies have put together a list of industries with high risk in fire insurance policies, which include paper, plastic and foam. Reinsurance companies do not accept only a very small percentage of insurance policies on these industries, provided that insurance companies operating in the Egyptian market bear the largest proportion of the costs. those documents.
The role of the union
The Egyptian Insurance Federation, through the General Fire Committee, has developed a set of recommendations that must be taken into account to avoid or reduce the size of fire losses, as follows:
1. Paying attention to collecting and analyzing information about the risk to be subscribed in in light of the availability of data provided by the client and conducting the necessary technical inspection.
2. Moral danger
There are some factors that must be taken into account, whether when requesting insurance or inspection, which help to avoid some of the effects of moral hazard, including:
§ Operating status of production lines (Is the factory stopped / working at full production capacity / working at half capacity due to lack of demand).
§ Incoming and outgoing records and expiry dates, are they continuous, or are there always incoming merchandise and there is no expense?
§ The general appearance of the facility, the extent of regularity of work in the facility, the management style, and the general appearance of the facility.
§ Is the validity of the existing goods about to expire??.
§ Are the merchandise models outdated compared to the ones in the market?
§ The financial position of the facility.
§ The volume of loans from the amount of insurance in favor of banks or financiers.
§ The rate of change in the loan amounts and the extent of the decrease or stability of the loan value.
§ The client’s reputation and financial position.
3- Ensuring that the inspector covers all the technically required points, in particular the adequacy of the means of prevention and their suitability for the type of activity.
4- The extent to which a specialized and trained industrial security team is actually present to prevent and reduce the occurrence of danger and to deal with the accident if it occurs.
5- Interest in knowing the type of buildings from which the activity or danger is constructed.
6- On-site maintenance system (electrical maintenance – maintenance of machines – maintenance of protective equipment …).
7- Follow the sound technical foundations in storage required for each type of activity.
8- Smoking is the second most common cause of fires after electricity.
9- Commitment to implement all recommendations of the inspected expert.
10- Awareness and training of workers and making them have a sense of security and familiarizing them with what may cause fires as a result of wrong behaviors and correct and early intervention by workers reduces losses.
11- Periodic inspection of fire-fighting equipment. And make sure of its effectiveness when needed.
12- Periodic inspection of safety procedures at the site, which limits the possibility of
fire. Regular maintenance – smoking – hot works.
13- Hygiene procedures and internal system followed in stores and their organization.
The most dangerous activities were also divided and special controls were set for each activity (wood – paper – foam – linen – oils – chemicals – plastics).
