The general exclusions under fire insurance policy

There are nine exclusions under the policy. They are:

1. 5% (or minimum Rs.10,000) of each and every claim resulting from the operation of Lightning/ STFI/ Subsidence & Landslide including Rockslide covered under the policy, and the first Rs.10,000 for loss under other perils. This is an ‘excess’ or ‘deductible’.
2. Loss or damage caused by war, civil war and kindred perils.
3. Loss or damage directly or indirectly caused to the property insured by nuclear risks.
4. Loss or damage caused to the insured property by pollution or contamination.
5. Loss or damage to bullion or unset precious stones, curios or works of art, for amount exceeding Rs.10,000, manuscripts, plans drawings, securities, obligations, any kind of documents, stamps, coins, paper money, cheques, books of accounts, business books, computer system records and explosives. How ever, some of these properties may be covered subject to special terms and conditions.
6. Loss or damage to the stocks in cold storage premises caused by change of temperature, though deterioration of stocks in cold storage premises due to power failure may be covered by an endorsement.
7. Loss or damage to any electrical/ electronic machines, apparatus, fixtures and fittings arising from over running, excessive pressure, short circuiting, arcing, self-heating or leakage of electricity etc. These risks are called Electrical Risks. These risks can be covered under Machinery Insurance.
8. Expenses incurred on (i) Architects, Surveyors and Consulting Engineers fees and (ii) Debris Removal necessarily incurred by the insured following a loss by an insured peril in excess of 3% and 1% of the claim amount respectively.
9. Loss of earnings, loss by delay, loss of market or other consequential/indirect loss or damage of any kind. The fire policy covers only material damage. However, some of the consequential losses can be covered under a separate consequential loss policy.

Extracts from “Guide for Fire Consequential Loss Insurance  (IC-57)” by Dr. Rakesh Agarwal. Copyright of Sashi Publications, Kolkata www.sashipublications.com and www.bimabazaar.com