This type of insurance provides protection to compensate for losses and damage to movable and immovable property of the danger caused by fire, theft and cover the risks of riots, disturbances, fire caused by the electrical contact, collision of vehicles, malicious acts, self-ignition, explosion, earthquakes, volcanoes, rain, floods, wind, cyclones, hurricanes, explosion of water pipes, water tanks overflowing, aircraft and objects falling from aircrafts and the sky.
To report the accident
The insured must inform the police first, then inform the company with a written notification immediately, then bring the report of the police and the competent authorities stating the circumstances and circumstances of the accident and the value of the loss.
Location detection
The company’s representative conducts an on-site inspection to carry out the damages and determine the causes of the accident and the value of the loss. In the case of major damages, the approved loss adjuster (licensed by the insurance controller) conducts the inspection and prepares a detailed report on the causes of the accident and the value of the loss.
A – Natural risks: it means risks caused by nature (hazards):
B – Social Risk, risk caused by human, includes:
C – Chemical risks:
Risks a rise from chemical interactions or chemical explosion or material deterioration.
D – Miscellaneous risk:
Including several risks:
There are a number of fire insurance policies, a number of factors are considered before deciding about the kinds of policies to be taken.
These factors are:
(1) The type of risk involved.
(2) The nature of the property to be insured.
(3) The contents of the property.
(4) Occupancy hazards.
(5) Exposure hazards.
(6) The time element.
1\ Value document:
In this policy the value of the subject-matter is agreed upon at the time of taking up the policy. The insurer agrees to pay a pre-determined amount if the subject-matter is destroyed or damaged by fire.
The principle of indemnity is not applicable to this policy. The agreed value may be more or less than the market value at the time of loss.
These policies are generally issued for those goods or property whose value cannot be determined after their loss or damage, these goods may include arts works, jewelry, paintings, etc.
2\ Floating Policy:
A floating policy is taken up to cover the risk of goods lying at different places with one insurance sum with a maximum limit of liability at all sites together.
The goods should belong to the same person and one policy is very useful to those businessmen who are engaged in import and exports of goods and,
3\ All Risks Policy:
This policy differs from the standard policy by not specifying the covered risk because the covered risk is not defined.
A policy may be taken up to all types of risks, including fire-a policy may be issued to cover risk like fire, explosion, lightening, burglary, riots, labor disturbances etc. this is called a comprehensive policy or all risk policy.
4\ Declaration Policy:
The excess policy contributes to only a ratable proportion of the loss because if the amount of excess stock exceeds the sum set in the excess policy the businessman shall not have a full cover owing to average condition, moreover if the first loss policy was also subject to average condition the assured will be at a loss.
The declaration policy shall give a better protection in such cases where the stock fluctuates from time to time under the declaration policy, the insured takes out insurance for the maximum amount that he considers would be at risk during the period of the policy.
The insured shall furnish a declaration of the amount every month in a fixed date or a specific period.
The premium is provisionally paid to 75% of the premium amount.
Practically, the annual premium is determined on the average of these declarations, if the premium is higher than the provisional premium already paid, the insured has to pay the difference to the insurer.
On the other hand, if the premium so calculated is lesser than the premium already paid, the excess is returned to the policy holder.
5\ Replacement value policy:
Replacement value generally means that the policy holder shall receive the full value of what it would cost to replace/ repair the dwelling, with respect to personal property, the insured shall not deduct the depreciation.
This policy provides coverage against property damage caused by fire or other covered perils. The basic version of a replacement value policy covers the cost of replacement, reconstruction or repair beyond what is outlined in the policy.
6\ Typical Insurance Policy Standard:
This policy has specific value to the amount of insurance that is fixed in the insurance.
For a fixed premium for the period of insurance it is subjected to adjustment according to the request of insured under the extension.
Definition of risks covered by the insurance policy:
It is the risk that has been described in the insurance policy as a covered risk, the coverage is classified as follows:
Basic coverage:
– Risk of lightning.
– Risk of fire resulting from explosion.
– Risk of fire caused by self-ignition.
Natural consequences coverage:
(1) Damage caused by smoke from the fire or the impact of the heat generated by the fire.
(2) The collapse of walls, ceilings and floors fall and damage caused by this collapse.
Coverage of Inevitable Consequences:
(1) Damage resulted from firefighting operation (using of water, foam and powder).
(2) Damage caused by firefighters’ attempts to reduce the influence of fire, such as breakage operations to break into flames.
The risks excluded from the insurance policy are:
Property and risks that are not covered by insurance except by an explicit text and an additional premium:
Risks not mentioned in the insurance policy
It is the risk that was not mentioned in the policy at all (neither a covered risk nor an excluded risk), and therefore it is not covered by the policy unless the risk results from a risk covered by the policy (the inevitable consequences of fire). And implicitly, the fire insurance policy does not cover civil liability towards third parties (the third party).
Fire hazards
They are direct risks that are attached to and integrated with the fire policy to give the insured the greatest amount of protection. It is covered for an additional premium, as follows:
The realization of the insured risk is followed by other indirect and intangible losses regardless of property damage, and the consequential risk insurance gives the insured additional protection as it is covered for an additional premium associated with the fire insurance policy.
This type of insurance is combined with fire insurance, and it is important in the possibility of continuing the activity of the facility in light of the interruption of production from an insured risk that has been achieved and is considered one of the peripheral risks or risks allied with fire and the loss of profits from the indirect losses of fire that lead to losses that have an impact on the various activities Economic, which represents the profits that could have been achieved from the sale of the produced units had the fire not occurred.
Likewise, the fixed expenses incurred by the insured despite the interruption of production, such as rent, salaries and additional expenses that must be spent in return for maintaining the workflow. With the necessity of insurance from fire against capital losses to guarantee the capital, the framework of this guarantee is incomplete and is not complete except with insurance against the loss of profits. Accordingly, we find that both are complementary to the other, as they provide a guarantee for the capital.
The loss of profits is secured by an additional premium and with special conditions related to the period of restoring the facility to its productive state.
Perils not covered by insurance (absolute exception):
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The misconception about denouncing euphoria and glorifying pain has already arisen, and I will show you the details so that you can discover the truth and basis of that human happiness. No one rejects, hates, or avoids feeling happy, but thanks to this.
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