Fire Insurance

Fire Insurance 2011 Fire Insurance 

1. Floating Policy : This policy is taken to cover one or more kinds of goods at one time under one sum assured for one premium.

This policy is useful to cover fluctuating stocks in deferent localities.

These policies are taken by big businessmen whose goods are spread at warehouse, port or railway station. It is occult for such businessmen to take specific policy for each type of goods. In this situation floating policy is very useful as it coves all goods at various localities..

 2. Average policy : This click contains the average clause, the amount of indemnity is determined with reference to the value of the property insured. If the policy is taken for the lesser amount than the value of the property, insured will get the lesser amount and will compensate the loss in that proportion. When the property is insured for the .|11 value of the proof, the insured is protected to the extent of his total loss.

3. Excess Policy : When the stack of business fluctuates from time to time, it is unable for him to take one policy or specific policy. Under this case, the insured may take two policies, namely 'first loss policy' and 'Excess policy. 'First loss policy' covers the stock below the minimum level and for the stock which exceeds the minimal level 'Excess Policy' is taken. value of excess. stock is declared even month average clause also applies to this policy.

4 Declaration Policy : It is the policy which gives better protection where the stock fluctuates from time to time. Under the declaration policy, the insured takes out an insurance for the maximum about which he considers necessary. On fixed date of every month the insured furnishes a declaration of the amount. ne great advantage of this policy is that the premium is limited to the actual amount at risk reflexive of the sum insured.

5. Adjustable Policy : This policy is nothing but an ordinary policy on the stock of the businessman with liberty to the insured to vary at his opinion. ne premium is adjustable pro-rata according to the variation of the stock. This policy is issued for a definite term on ti z existing stock. The premium is calculated in the ordinary manner alibi is paid in full at the inception of the policy. Whenever, there is variation in the stock, the insured irdbrms the insurer. When the insurer receives such information, the premium is adjusted on a pro-rata basis.

Thus, .the policy amount will be changeable from time to time.