Do’s before filing the claim
1. Inform the insurer immediately
Notify the insurance company, broker or agent as soon as the fire occurs. Delay in intimation can create doubts and may affect claim processing. Under the current policyholder protection framework, insurers are expected to guide policyholders on claim procedures and maintain transparent claim handling practices. (IRDAI)
2. Take emergency steps to minimise loss
Arrange firefighting, isolate unaffected stock, shut down utilities where required, and prevent further damage. The insured is expected to act prudently, as if uninsured.
3. Inform police and fire brigade
Obtain the Fire Brigade Report and, where applicable, the police intimation/FIR or station diary entry. These documents are important for proving the occurrence, cause and scale of loss.
4. Preserve the affected site until survey
Do not disturb damaged machinery, stock, raw material, finished goods, electrical panels, documents or debris unless safety requires it. The surveyor must be able to inspect the actual loss condition.
5. Photograph and video record everything
Capture the factory premises, affected sections, damaged machinery, stock, electrical installations, firefighting efforts, salvage, debris and unaffected areas. Keep date-wise records.
6. Cooperate fully with the surveyor
A licensed surveyor/loss assessor is required to assess and validate losses with professional competence, objectivity and integrity. Provide full access to records, premises, production details and explanations. (Department of Financial Services)
7. Prepare a structured claim file
Maintain one central claim file with copies of all communications, documents submitted, acknowledge-ments, surveyor queries and replies.
8. Segregate damaged and undamaged stock
Separate burnt, partially damaged, water-damaged and unaffected stock. Label them clearly. Do not dispose of salvage without insurer/surveyor approval.
9. Reconstruct records if destroyed
If accounting records, invoices or stock registers are damaged in fire, reconstruct them using GST returns, bank statements, purchase invoices, sales records, ERP backups, production records, CA certificates and supplier/customer confirmations.
10. Check policy coverage carefully
Review sum insured, location covered, stock declaration clause, reinstatement value clause, underinsurance, excess, add-on covers, business interruption cover, spontaneous combustion, electrical damage, debris removal, architect/surveyor fees and other extensions.
Documents usually required
For a manufacturing unit, the insurer/surveyor may ask for:
| Area | Key Documents Required |
|---|---|
| Building Loss | Building plan, ownership/lease documents, repair estimates, contractor quotations |
| Production Records | Daily production register, batch records, power consumption details, job work records |
| Salvage | Salvage inventory, photographs, disposal approvals, sale details |
| Business Interruption | Turnover records, gross profit calculations, standing charges (if claimed), proof of production stoppage |
| Area | Key Documents |
|---|---|
| Building Loss | • Building plan • Ownership/lease documents • Repair estimate • Contractor quotation |
| Production Records | • Daily production register • Batch records • Power consumption details • Job work records |
| Salvage | • Salvage inventory • Photographs • Disposal approval • Sale details |
| Business Interruption | • Turnover records • Gross profit calculation • Standing charges (if claimed) • Proof of production stoppage |
Don’ts while filing the claim
1. Do not delay claim intimation
Late reporting can weaken the claim, especially where the cause of fire, extent of damage or salvage condition becomes difficult to verify.
2. Do not start major repairs without approval
Emergency repairs for safety may be necessary, but major replacement, dismantling or disposal should be done only after informing the insurer/surveyor.
3. Do not throw away damaged goods or debris
Even burnt or damaged material may have evidentiary and salvage value. Disposal without approval may lead to dispute.
4. Do not inflate the claim amount
Avoid exaggerated stock quantities, inflated repair estimates or unsupported replacement values. Overstatement can damage credibility and may lead to repudiation or prolonged investigation.
5. Do not submit incomplete or inconsistent records
Mismatch between stock register, GST returns, bank stock statements, audited accounts and production records is a common reason for claim disputes.
6. Do not hide previous fire incidents or safety lapses
Suppressing facts such as earlier fire losses, non-functional fire extinguishers, unauthorised storage or change in occupancy can create serious coverage issues.
7. Do not admit liability or give speculative statements
Avoid guessing the cause of fire in writing. Use factual language such as “cause is under investigation” unless confirmed by competent authority.
8. Do not ignore policy conditions
Manufacturing policies may include warranties or conditions related to fire protection systems, hazardous storage, electrical maintenance, housekeeping or occupancy. Non-compliance can affect admissibility.
9. Do not rely only on oral communication
Every important submission, clarification, approval or request should be documented by email or letter.
10. Do not treat the surveyor as an opponent
The surveyor’s role is to assess and validate the loss. A cooperative, transparent approach usually helps faster and more accurate claim settlement.
Practical claim strategy for manufacturing units
The claim should be presented in a clear, evidence-based and item-wise manner. Manufacturing fire claims often become complicated because stock may include raw material, work-in-progress, finished goods, consumables, packing material and machinery parts. The safest approach is to prepare separate loss statements for building, plant and machinery, stock, electrical installations, furniture/fixtures, debris removal and business interruption, wherever applicable.
A good claim file should answer four questions clearly: What happened? What was damaged? What is the value of loss? How is the value supported by records? This reduces back-and-forth queries and improves the chances of smooth settlement.
