Fire insurance is a specialized form of insurance beyond property insurance and is designed to cover the cost of replacement, reconstruction or repair beyond what is covered by the property insurance policy. This insurance policy typically contains general exclusions, such as war, nuclear risks, and similar perils.
Claim Settling Process –
(1) Intimation to Insurance Company: The insured must give immediate intimation to the insurance company regarding the loss. The necessary details like the day, date, time and causes of fire and in case of marine insurance, ship, and voyage have taken should be mentioned.
(2) Assessment of the loss: The insured makes an assessment of the actual loss. Such an assessment is required to fill the claim forms correctly in respect of the loss of goods or properly.
(3)Submission of the claim form: The insured must fill all possible details in the claim form. He must lodge the claim form within 15 days of the fire to claim compensation. In case of marine insurance the insured should lodge a claim with the following documents:
- Original Insurance Policy,
- Copy of Bill of Lading,
- A copy of the Commercial Invoice,
- A copy of the packing list,
- Survey report,
- Claim Bill.
Delay in a submission of claim form may result in non-acceptance of the claim.
(4) Evidence of Claim: Along with the claim form, the insured must send certain proof of tire and other records, if available and if necessary. The evidence should enable the insurance company to determine the amount of loss.
(5) Verification of Form: The claim form along with the supporting evidence is verified by the insurance company. The insurance company then appoints the surveyors to conduct an assessment of the actual loss.
(5) Survey: After the receipt of the form, and necessary verification, the insurance Company appoints the surveyors to assess the actual loss. The surveyors conduct the necessary investigations. They investigate into the cause of a fire, the actual amount of property lost and other relevant details.
The surveyors then make the report of their findings and assessment of the loss.
(7) Landing Remarks: In case of Marine insurance, the insured should obtain landing remarks, from the port authorities, if the survey report is not obtained.
(8) Appointment of the arbitrator: There may be a dispute regarding the amount of claim. In such case, an arbitrator is appointed, acceptable to both the parties, to settle the amount of dying less.
(9) Settlement of Claims: If there is no dispute between the two parties, as to the amount of loss, the insurance company then makes necessary payment to the insured.