PRACTICE OF FIRE INSURANCE IN INDIA

In India, under fire insurance policy, in addition to fire, other perils are also included and the policy is known as “Standard Fire and Allied Perils Policy”.

The perils specified in the fire policy are:

1. Fire: It has been explained as above.
2. Lightning: Any lightning due to cloud burst may damage the property and the same will be covered under the fire policy.
3. Explosion / Implosion: Sudden change in the temperature in any plant & machinery or exposure to atmospheric pressure may result into loss and the same will be covered under fire policy.
4. Aircraft Damage: Any damage to the property due to any droppings by aircraft or by itself will also be covered under the fire policy.
5. Riot, Strike and Malicious Damage (RSMD): Any damage to the property due to public or strike by employees or malicious damage (intentional damage) by any person will be covered under this policy.
6. Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation (STFI): The property damage due to any of these storms and flood will also be covered under this policy. The meaning of these perils lies in different intensity of the storms. Flood not only means the leakage of water through river but also accumulation of water due to heavy rains in the premises.
7. Impact Damage: Damage to the property due to impact by any Rail / Road vehicle or animal by direct contact, but not belonging to or owned by the Insured or any occupier of the premises or their employees while acting in the course of their employment.
8. Subsidence and Landslide including Rock Slide Destruction or damage caused by Subsidence of part of the site on which the property stands or Land slide / Rock slide.
9. Bursting and/or overflowing of Water Tanks, Apparatus and Pipes: If due to bursting or overflowing of water from the water tanks installed in the premises of the policyholder any damage or loss to the property of the policyholder is caused, it will be covered under this policy.
10. Missile Testing Operations: Any loss or damage due to missile testing by the Govt. or otherwise will be covered under this policy.
11. Leakage from Automatic Sprinkler Installations : In most of the organizations as a fire protection measure, automatic sprinkler system is installed. If due to non–usage of the sprinkler system or otherwise it starts leaking and damages the property, then it will be covered under the fire insurance policy.
12. Bush Fire: It means fire spread from the bushes (small fire) but will not include forest fire.

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