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