When the subject matter of insurance is lost or damaged in fire, the insured
victim looks towards the insurance company
for rehabilitating himself. Generally
the following procedure is adopted while settling the claims under fire
insurance. (1) NOTICE OF LOSS: First of all the insured , immediately after the occurrence of a fire, has to send a
notice of loss to the insurance company. This notice enables the insurer to
take such measures to determine the
cause of loss, estimate the extent of
loss and deal with the salvage. This notice need not be in writing, it may be
verbal i.e by telephone or personal call. The notice need out be given by the
insured personally and may be given by on his behalf.
Notice given to agents
does not discharge the insured from his duty unless expressly allowed to do so and the failure of the agents to transmit the message to insurers, may give grounds for repudiation of
liability. (2) EVIDENCE OF LOSS: If possible
the evidence of loss and other details such as time, place and circumstance
under which the loss occurred, may be sent along with the notice of loss to the
insurer. Besides he should send
particulars about the preventive measures
taken by the him during fire to mitigate
the loss. The duty of providing
full particulars and proof of loss
rests entirely upon the insured.
(3) POLICE REPORT IN CASE OF ARSON: In case, the loss or damage due to
fire is caused by arson (I e act of
setting something on fire intentionally and unlawfully by an unscrupulous
person), the matter will have to be brought to the knowledge of the nearby
Police Station. Even if there is a slight
suspicion of anybody’s involvement in this arson, the same should be
mentioned in the complaint report
submitted in the police Station. The
Police officials will after making
proper investigation issue a report. Such report has to be submitted to
the insurer. If the fire-brigade was summoned, the brigade records should also be produced with the insurer .
FORMAL CLAIM FROM: After having received the notice of fire loss a claim
from is issued by the insurer to the insured and he is a requested to return it after completing and giving therein all the information about
the loss. The claim form contains the
following information. (a) Name of the insured, Policy number and address. (b)
Date, time cause and circumstances of the fire.
( C ) Details of damaged property.
(d) Sound value of the property at the time of fire, where the insurance
consists of several items, a declaration is required of the values of each item under which the
claim is made. (e) Amount claimed after
deduction of salvage value. (f)
Situation and occupancy of the premises in which the fire occurred. (g)
Capacity in which the insured claims whether
as owner mortgage the like. (h)
If any others person is the interested in the property damaged, and. (I) If
any other insurance is in force upon such property. In case
the amount of the loss is small and the claim issimple and straight
forward,. the insurer will admit the claim and send the cheque in full settlement without further enquiry. (5) INSPECTION OF LOSS: If the loss is know
or expected to be large and serious the
insurer will depute a independent loss surveyor to ascertain the cause and extent of loss. the surveyor, would inspect the
damaged property or goods at the scene of fire and contact the insured his
neighbours, employees and other persons connected with the fire and
collect the desired information .
This investigation enables the surveyor to have an idea of the nature and a extent of loss and origin and cause of fire. The surveyor also prepares a detailed item wise list of the property or goods left at the scene of fire and get it attested by the insured in order to avoid any attempt of exaggerated claim by the insured at some large stage. Besides the surveyor also carry out salvage operations. I. e , the wreckage of the property or goods having some scrap value, will be taken into the account to reduce the net cost of the claim. If the insured wants to retain the salvage an appropriate amount is subtracted from the amount of the claim. The damage and undamaged goods have to be separated in order to avoid any further loss due to fire.
This investigation enables the surveyor to have an idea of the nature and a extent of loss and origin and cause of fire. The surveyor also prepares a detailed item wise list of the property or goods left at the scene of fire and get it attested by the insured in order to avoid any attempt of exaggerated claim by the insured at some large stage. Besides the surveyor also carry out salvage operations. I. e , the wreckage of the property or goods having some scrap value, will be taken into the account to reduce the net cost of the claim. If the insured wants to retain the salvage an appropriate amount is subtracted from the amount of the claim. The damage and undamaged goods have to be separated in order to avoid any further loss due to fire.