Insurance Issue of the Week

Insurance Issue of the Week-51

Is it justified only Earthquake peril  for the Plinth & Foundations?

Under the Standard Fire & Special perils Policy, the Buildings are either covered  above plinth level or when Plinth & Foundations are covered ,  EQ peril is taken with the presumption that only due to this peril ,  the P & F’s are likely to be affected. The  insurance companies too , in their quotes , suggest taking only the EQ risk for plinth & foundations. However , the scenario has changed altogether for many type of industries ,

particularly the Textile Mills , where  large number of cables pass under the foundations

and in the event of any loss due to other perils like Fire & STFI , the claim payment is likely to be jeopardized. Therefore , in respect of Plinth & Foundations ,it is imperative to quote the rates for all perils and not confine the same to EQ only.

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