Fire Insurance Claim Procedure 2011

Fire Insurance Claim Procedure 2011 ..     .

1. Notice of Loss : When the loss. occurs due to fare, the known should give notice to the insurer. There fore. insurer cannot be liable to meet a claim unless he receives a notice of claim from tie insured Hence the insurer immediately after the occurrence of a fire should give a notice of loss to the insurer to register the claim of loss by fare.

2. Evidence of Loss : The notice of loss should be accompanied by the evidence of loss, the time, place and circumstances under which the loss (inured. He should mention the role played by him to mitigate the loss. To claim the loss, the insured must have taken necessary stem to mitigate the loss.

3. Formal Claim Form : On receipt of notice, the and. sends a claim form to be insurer The insured should submit this form along with the details and evidence to be insurer to enable the insurer to determine the claim. This form contains all details of the damaged property and the market value of the damaged property sometimes the insured is required to send affidavit along with the claim form.

4. Inspection of Loss. : After receiving the claim form, the loss is inspected by the experts known as 'Surveyors' or 'Valuers'. The surveyors estimate tie value of loss and send their report to the insurer, regarding. the nature and causes of fire They also carry out salvage   .

Orations and after taking account the value of salvage is reduced from the about if claim of the insured agrees to retain the salvage with him.

        5. Ascertainment in Loss : After inspection of the site of loss and other information collected, the surveyors ascertain the total extant of loss to determine the liability of the insurer. While ascertaining the loss the surveyors take into account the time of fare, number of policies taken for the said subject-matter and cause of fire. then the surveyors calculate the loss according to the conditions of the fire policy.

6. Average Clause : In ascertaining the value of loss, the surveys ' have to see that whether the policy is subject to an average clause. If there is an average clause, the undamaged property is also to be valued.

In case of average policy the insurer is liable to pay the only such proportion of the loss as the so insured bears to the total value of the property. ' 

7. Estimation of Claim : If the fire occurs more the one time   ' the currency of one fire policy the insurer is not liable to pay more the the maximum amount insured unless the insured has paid .   extra premium. If the subject-matter of insurance has insured with more .

than one insurers, the the claim is to be settled through the use of contribution clause and the liability of each insurer is limited to a ratable proportion. Sometimes, there is a damage and destruction of account all and records due to fire and therefore, the claim cannot be determined In such cases, the value of stock and the value of loss is estimated by preparing Trading and Profit and Loss Account. the past ratio of boss profit is applied to current year also and the boss pas profit is estimated. On the basis of this the surveyors will assess the amount of loss.

. 8. payment of Claim : After ascertaining the amount of actual loss the surveyors take a declaration from the insured regarding the acceptance of claim and the send the she along watts their report to to: insurer. the insurer then verifies the claim as per the conditions of the policy nod settles the claim in accordance with the term of fee click. the claim may be settled by cash payment or replacement of insured property or reinstatement.

9. Rejection of Claim : In some cases the insurance company may reject the claim. Generally, in the following cases the claim may be rejected : (1) If there is no insurable interest at the time of loss or at the time of taking click, (2) When the principle of utmost go faith is not observed, (3) When he loss has arisen from the ills excluded   from the policy, (4) If the loss had occurs due to the defect in the insured property which has not disclosed at the time of taking a fire policy, (5) If the insured has not taken all the possible steps to mitigate the loss etc.