What are the disadvantages of third party fire and theft insurance?
What 15 are the disadvantages of third party fire and theft insurance for the year Subject to the conditions, exceptions and provisions stipulated in the document and its appendices, this type of insurance provides protection to compensate for losses and damages to property (buildings, contents, machinery and equipment, goods, consequential losses) resulting from fire and lightning risks, which can be insured through a typical fire insurance policy. Coverage can be expanded to include other types of risks within additional appendices issued with the original document.
Basic coverage: fire and thunderbolt.
Additional coverages: earthquakes, storms, tornadoes, floods, water damage, plane crashes, riots, strikes and intentional harm, as well as violent theft..etc).
An additional premium is calculated if any additional coverage mentioned above is included in the policy.
What 15 are the disadvantages of third party fire and theft insurance for the year insurance.post1 2023 The insurance premium is calculated on the basis of a percentage (per thousand) of the total insured amount, and is determined according to the nature of the building and other elements of risks and safety means.
What 15 are the disadvantages of third party fire and theft insurance for the year insurance.post1 2023 Profit loss insurances related to fire and allied natural hazards insurance policies
Many insurers, depending on the nature of their activity, wish to purchase somewhat specialized additional coverage such as “loss of profits” following a fire accident that may lead the insured to stop carrying out his commercial or industrial activities, which results in a high financial loss in addition to the material loss.
Accordingly, and taking into account the conditions and exceptions stipulated in the fire policy or in this additional insurance (if it differs from what is stated in the original policy), if the buildings or other properties owned by the insured are destroyed or damaged or used by the insured in the place of insurance or any other Part of it during the insurance period due to fire or any of the additional risks mentioned in the fire policy schedule, the insurance company will compensate the insured in the manner and limits set forth in the policy in relation to the loss in gross profit resulting from the decrease in sales and the increase in operating costs.
Fire insurance procedures
1- Issuance procedures
What 15 are the disadvantages of third party fire and theft insurance for the year insurance.post1 2023 What are the disadvantages of third party fire and theft insurance? Obtaining the insurance application: The insurance application can be obtained either through the company’s representative or through its approved agent or directly from the company.
Filling out the insurance application form: The insurance applicant fills out a special form that includes the details of the money to be insured and is signed by him to confirm the validity of the information recorded in the insurance application form.
On-site inspection: A representative of the company conducts a site inspection of the insurance shop to assess the risk and ensure the correctness of the information recorded in the insurance application form.
Pricing: The Issuance Department in the Fire Department studies the insurance application and the inspection report to estimate the appropriate price according to the degree of risk that the insurance company will bear.
Issuance of the insurance policy: The insurance premium is determined. The policy is prepared to include the agreed terms, details of the insured funds, their amounts, and the additional covers requested by the insured with the original policy. The insurance premium is paid and a copy of the policy is delivered to the insured.
2- Compensation proceduresWhat are the disadvantages of third party fire and theft insurance? Reporting of the accident: The insured informs the insurance company immediately upon the occurrence of the accident, and the application form for compensation is filled out with the details of the accident, the circumstances of its occurrence and the damages and losses resulting from it.
On-site inspection: A representative of the company performs a site inspection to estimate the damages and determine the cause of the accident. In the case of major damages, a loss adjuster approved by the company (especially in the case of major damages) conducts the inspection and prepares a detailed report on the damages and the causes of the accident.
Required Documents: The insured shall submit the following documents with his claim for compensation:-
Purchase invoices for damaged money, civil defense report, police report and criminal investigation of the accident.
Settlement of the amount of compensation: In light of the documents and the report of the inspector, the insurance expert, the claims department in the company studies the claim according to the terms of the insurance policy to ensure that it includes compensation, determine the value of the losses, and present the amount of compensation to the insured. In case of disagreement, the matter is referred to arbitration in accordance with the terms of the policy.
Payment of the compensation amount: The agreed compensation amount is paid to the insured and the release is signed by receiving the amount.