Takaful Fire Cover
This is a cover which provides protection of your valuable assets from unexpected fire and lighting damages. The policy covers the damage of buildings, fixtures and fittings as well as internal contents like furniture and electrical equipment walls, gates and fences.
What Do We Cover?
The fire policy covers all physical assets, including the building and physical property within the building such as the
- Buildings, Fixtures & Fittings - Including walls, gates and fences
- Contents – Furniture, Machinery, Electrical goods, Stocks, etc.
In addition to the above the following expenses incurred are also covered :
- Removal of debris
- Loss of rent / Alternative accommodation
- Architect’s, Surveyor’s & Consulting Engineer’s Fees
The Basic Fire Policy covers,
Fire and Lightning
What do we mean by fire?
- There must be an actual fire or ignition.
- Something which ought not to be on fire, should have ignited accidentally
- The fire must be accidental in origin.
Other incidental damages caused by ‘fire’ is also considered as fire damage.
- Damage by smoke or heat from the actual fire
- Water damage in extinguishing the fire
- Damage caused by Insured / Firemen / other helpers in extinguishing / preventing the spread of fire or to rescue any life or to save the property.
- Collapse of any part of the building, walls, roofs, etc. (not affected by the Fire) due to collapse of any part of building.
- Damage to other property in the burning building or in the surrounding property- insured under the same policy- (not affected by the fire) due to collapse of any part of the building.
This is covered under the Fire cover including damages caused by lightning, irrespective of it causing a fire.
Risks not covered unless specifically included;
- Goods held in trust or on commission
- Bullion or unset precious stones
- Any curio or work of art for an amount exceeding Rs.1, 000/-
- Manuscripts, plans, drawings, designs, patterns or moulds.
- Securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of account or other business books, or computer system records
- Earthquake, volcanic eruption or other convulsions of nature.
- Cyclone, storm, tempest, typhoon, hurricane, tornado or other atmospheric disturbances.
- War perils – whether war be declared or not
- Mutiny, riot, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law/ state of siege or events
- Explosion ( except gas used for domestic purposes)
- By its own fermentation, natural heating or spontaneous combustion or by its undergoing any heating / drying process.
- Burning of property by order of any Public Authority.
- Subterranean fire.
- By nuclear weapons, ionizing radiations or contaminations by radioactivity.
- By burning forests, bush, pampas, patnas, prairie or jungle (whether accidental or not) and clearing of lands by fire.
- Loss by theft during or after the occurrence of fire.
- Damage to electrical items / installations by over-running, short-circuiting, excessive pressure, leakage of electricity, self heating etc. (Lightning included.)
By payment of an additional contribution for the following perils can also be covered (Damage by Fire or Otherwise)
- Riot and Strike
- Malicious Damage
- Terrorism (can be obtained only in conjunction with SRCC cover)
- Earthquake and related perils - Volcanic Eruption and Seaquake
- Cyclone, Storm and Tempest (CST) and related perils - Tornado, Hurricane, Typhoon, Hailstorm
- Flood and related perils – Tsunami and Tidal Waves (can be obtained only in conjunction with CST)
- Impact Damage
- Aircraft Damage
- Spontaneous Combustion
- Damage by falling trees
- Sprinkler Leakage
- Electrical Inclusion (Burn marks to be visible)
- Bursting or overflowing of water tanks, Apparatus and Pipes
On what basis should the property be insured for?
- Buildings, Fixtures and Fittings – On reinstatement value basis
- Building under construction – On estimated completed value of the building
- Plants, Machinery, Utensils, Furniture and Fittings, Equipment and tools – On reinstatement value basis
- Merchandise and Stocks –
- Wholesalers and Retailers Stock-in-Trade - Cost price to the Insured
- Manufacturers Stock –
- Raw Materials – Cost price to the Insured
- Work-in-progress and finished goods – Cost price + Cost of manufacture
- Goods held-in-trust – Either Reinstatement value OR Cost price (as per agreement)
Factors to consider for analyzing the risk
- Occupation / Nature of Business
- Adjoining and Surrounding Premises
- Construction of Building Door/ Walls/ Roof/Lighting
- Nature of Goods and raw materials stored
- Loss prevention / minimization methods
- Condition of electric wiring and drainage system