Kutcha or Non Kutcha Construction under Fire Insurance? (Fire)
All India Fire Tariff (AIFT) prescribes that in case of “Kutcha” construction the premium will be loaded by certain amount but not defined what “non Kutcha” construction is. But the kutcha construction is defined in the tariff “ Building having walls and /or roof of wooden planks/thatched leaves and/or gre\ass of any kind /bamboo/plastic cloth/asphalt cloth/canvas/tarpaulin and the like shall be treated as of Kuthca construction for rating” . Hence, any fire policy covering building should mention either kutcha or non kutcha construction but the policy issued by various Insurers especially Private Insurers is showing Building as “Class I construction” which contravention to the terms and conditions of the policy. At the time of claim the Surveyor insist the Insured to prove that building is “Class I construction” as per National Building Construction Code (NBCC) which stipulates that Class I construction means that Steel, Wall and Roof are fire resistant for two to four hours which is very difficult for the insured to prove the same as a result the Insurer or Surveyour tries either to repudiate the claim or to settle the claim for lower amount.
Kindly ensure that in Fire insurance policy and the Building is included Class I construction is not mentioned by the Insurer.
It is noticed that some of the Insurers have issued policy to the “Green House/Poly house” with Building as Class 1 construction while it is made of plastic cloth and the premium to be loaded on account of Kutcha construction. Is it intentional or casual approach of the Insurer, is known to them only?