What Is The Difference Between Fire Insurance Policy With All Risk Property Insurance Policy?

1. Fire Insurance Policy

a. Polis Fire = "Named Perils" Policy
Mentioned in the policy risks is guaranteed whatever the specifics:
• The main risk (main coverage)
Fire, Lightning, Explosion, Impact of Aircraft, and Smoke (Flexas).
• The risk of extension (extended coverage)
Riot Strike Malicious Damage (RSMD), Removal of Debris, Landslide, Flood, Earthquake (EQ).
• Risk is not guaranteed (exclusion).

b.Fire Policy
• Fire Policy (material damage)
• Policy LOP (LOP No guarantee, but with a separate policy)

2. Property All Risk Insurance Policy

a. Property All Risk Insurance Policy = "All Risks" Policy
In the policy did not expressly mention any risks that are guaranteed, as long as the risk is not excluded. In this case the specific mention is exclusion.

b. PAR Policy
• PAR Section I
• PAR Section I & II (May 1 alone section or sections 1 and 2)

Property All Risk Insurance Policy
1. Proposal Form / application form
Form application in insurance coverage, which contains questions that must be filled by the insured

2.  A Form:

ü  Munich Re / Wording.

ü  ABI (Association of British insurers)

ü   Other, issued by the brokers, more broadly (Tailor Made Policy).

3. Schedule
Part of the policy that clearly describes the data from the insured and the insured.

4. Endorsement = addendum
Attachment changes in the policy:
    Can expand the warranty
    Can narrow the assurance
    Changing the period, the address of coverage, etc.

5. Clause

An additional attached to a policy that can expand or narrow the warranties and guarantees contain provisions that must be performed by the insured.
For example:
    Expansion: Landslide guaranteed
    Refinement: The Flow of unsecured short

6. Warranties (guarantees / mandatory)
A requirement that complements the policy which contains a condition that must be met by the insured. There is:
    Do something (eg, suctioning dust regularly in yarn spinning mills).
    Not doing something (eg no smoking).

7. Policy Period
Indemnity period starts from the beginning of the period until the expiry of the policy (determined by the two sides). Start and end = 12 noon.

8. Indemnity Period
Period of time specified indemnity provided by the insured. Calculated from the accident up to a certain time.

Property All Risk Insurance Policy:

1. General Exclusions

    War, insurrection, revolution, the takeover of power, terrorism.
    Radiation, ionizing, radioactive nuclear contamination.
    Intentional / negligence the insured or a representative of the insured

2. General Condition

    Cancellation Policy

If there is a misrepresentation or non disclosure
• Coverage will cease if:
    Places have changed.
    The risk increases.
    Interests of the insured is not there (except with a will).
    Insured businesses liquidated / permanently discontinued.

• Warranty
    Apply during coverage period.
    If not complied with and causes the increased risk, the loss can not be paid.

• Reasonable Precaution (to prevent loss)
    Meet the underwriter recommendations.
    Fulfill obligations of the Act and manufactur recommendations.

• Right to Inspection
    Insurer entitled to review the risk at any time.
    Insured shall convey the information in detail.

• Claims Procedure, the insured must:
    Notify as soon as possible about the nature and extent of loss.
    Minimizing the amount of loss
    Willing to be inspected / surveyed by the insurer
    Prepare the necessary documentary evidence if the insurer.

• Fraud, policy becomes invalid

• 30 days after receiving the final report of the adjuster / proof of loss.
Insurer entitled to delay, if:

    There is a suspicion.
    Need inspection from the authorities.

• Interest
Interest payments will be made if there is negligence on the part of the insurer.

• Arbitration
    When there are differences in the amount paid? appointed arbitrator resolved the two parties.
    If the decision is not approved Arbritator, each party appointed an arbitrator.
    If the second arbitrator's decision is not approved, appointed an Umpire.

• Subrogation

The insured person agree any action to get compensation from other parties.
 Insurers are entitled to a subrogation right after / before the payment of compensation to the insured.

• Other Insurance (Rateable proportion)

• Period of Insurance
    Start and end = 12 noon
    Automatically renewed, unless the insurer / insured terminate with 30 days notice before.

• Average
Replaced = original, without any profit.
Rates of coverage for each item for physical damage will be stated separately subject to average.

• Deductible
Does not guarantee a specific amount as your own risk after the application of average condition.

• The price of coverage
There will be reduced by the payment of compensation.

3. Section I - Physical Damage

• Insurers give compensation in connection with losses due to unforseen, sudden and accidental damage by a cash payment, replacement, or repairment coverage up to a total price per item.

• Special Exception:

Ø  Property in the construction period.

Ø  Property in the repair, cleaning, renovation.

Ø  Property in transit by road, rail, air or water.

Ø  Guaranteed in the Marine Policy, Machinery Breakdown Policy.

Ø  Vehicles on land, sea, air, water, space, locomotives and the like.

Ø  Jewelry, precious stone, medallion, cape fur, rare items / works of art.

Ø  Standing timber, animals, mountains, fish, plants.

Ø  Land, roads, railways, dams, canals, cables, tunnels, bridges, pipelines, port, mining, offshore property.

Ø  Goods rental, credit and the like.

Ø  Directly / indirectly caused by:

ü  Delay, loss of markets, the failure of the installation.

ü  Dishonesty, fraud, deception.

ü  Rust, wear, corrosion, fungus, lice, wet, karing, insect larvae.

ü  Pollution, contamination

ü  Shrinkage, discoloration / taste, weight loss.

ü  The costs of maintenance / care.

ü  Errors in programming, labeling.

Ø  First Loss Insurance
Price coverage is only partial, because it is considered in the event of theft / risk is not lost / damaged all. Among other things:

Ø  Money and postage

Ø  Employees pedal cycles and others the personal effects.

Ø  Material value of documents, manuscripts and business books, patterns, models, prints, plans and designs.

Ø  Material costs of computer systems.

• Removal of Debris (ROD)
Guarantee the cost of cleaning the debris.

• Capital Addition
Policy ensures:

ü  Buildings, machinery and other equipment newly acquired

ü  Changes, additions, repairs to buildings and machinery

With the following provisions:

ü  The addition of not more than 5% of the price of coverage for each location.

ü  Notify the insured within 3 months and pay the additional premium.

4. Section II - Bussiness interruption

• When the insured business affected by the harm that was replaced in part I, then the insurer reimburse some expenses caused by the disorder.
Special Exception:

ü  The ban on reconstruction by the government

ü  The reduced quality of stock that does not come damaged, after the occurrence of risks.

ü  Loss of business due to delays / cancellation of permit / order.

ü  Inability to collect debts due to the destruction of records / bookkeeping.

ü  Fines, sanctions of the contract are not fulfilled as a result of the disaster.

ü  Loss of "Goodwill".

• The requirements that must be met for BI:

ü  Must close with other policies (Fire, Machinery Breakdown, Property All Risk).

ü  Dangers that cause must be the same

ü  The insurance company that covers it must be the same.