{"id":274,"date":"2020-04-07T16:55:13","date_gmt":"2020-04-07T16:55:13","guid":{"rendered":"https:\/\/sudhirkumarjain.com\/shop\/?p=274"},"modified":"2020-04-09T08:04:32","modified_gmt":"2020-04-09T08:04:32","slug":"insurance-issue-of-the-week-4-fire","status":"publish","type":"post","link":"https:\/\/sudhirkumarjain.com\/shop\/insurance-issue-of-the-week\/insurance-issue-of-the-week-4-fire\/","title":{"rendered":"Insurance Issue of the week-4 (Fire)"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][vc_column_text]<\/p>\n<h1><u>Coverage of Boundary wall under Standard Fire and Special Perils Insurance Policy (SFSP) <\/u><\/h1>\n<h1>Whether boundary wall is included in the building, if the word boundary wall is not specifically mentioned in the policy?<\/h1>\n<p>As per regulation 7 of All India Fire tariff, it is not permissible to issue a policy, covering only certain portion of a building. No separate premium rates are defined for the boundary wall in the current tariff wef 1\/4\/2001, as compared to previous tariff. Hence, the principle of\u00a0 <strong><em>\u201cper se\u201d<\/em><\/strong> will be applicable as <strong>\u201cone occupation one rate\u201d<\/strong> on the boundary wall also.<\/p>\n<p>It is observed that in various claims of boundary wall, damaged due to flood, the boundary wall was not specifically mentioned in the policy &amp; the Surveyor\u2019s are being reluctant to recommend the claim on the pretext it is not part of the building even if the boundary wall is capitalized with building and \u201cDesignated Property\u00a0 Clause\u201d is included.<\/p>\n<p>Further, TAC issued a circular no. FT\/26\/2001 dated 21\/12\/2001 namely <strong>\u201cRating of Compound Walls, Fencing and Crematoriums\u201d <\/strong>where the normal Boundary wall\u2019s rate is defined as Rs 1.50 per mili <strong>Section V \u201cUtilities located outside the Compounds of industry \/manufacturing risks\u201d . <\/strong>The question arises whether the regulation 7 \u201cno partial insurance\u201d will be applicable or the circular of different rate will be applicable.<\/p>\n<p>The legal interpretation taken by Maharashtra State Commission\u00a0 as Building includes boundary wall relied on the Supreme Court\u2019s judgment in case of Municipal Corporation of Greater Bombay Vs India Oil Corporation.<\/p>\n<p>The Insurers do not apply this decision in each and every case, therefore, it is suggested that boundary wall may be specified separately and the benefit of rate may be availed, if fire rate is higher that Boundary wall rate.<\/p>\n<p><strong>Interesting incident:<\/strong> One of our clients asked to insure the building under <strong>\u201cBurglary insurance\u201d <\/strong>also<strong>. <\/strong>The undersigned was shocked on the insurance policy of burglary desired by him. On query, he replied that very frequently the nearby villagers are removing the bricks say 500 to 1000 at night and they have to rebuild and incurring heavy expenses as availability of labour is very poor. To cover such risks the burglary insurance is required at least some expenses are recovered. I explained him that the insurer may put excess clause to avoid such losses. Therefore, the burglary policy is not recommended.<\/p>\n<p>Waiting for your valuable suggestions and comments.[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] Coverage of Boundary wall under Standard Fire and Special Perils Insurance Policy (SFSP) Whether boundary wall is included in<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[24],"tags":[],"class_list":["post-274","post","type-post","status-publish","format-standard","hentry","category-insurance-issue-of-the-week"],"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"","_links":{"self":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts\/274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/comments?post=274"}],"version-history":[{"count":1,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts\/274\/revisions"}],"predecessor-version":[{"id":275,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/posts\/274\/revisions\/275"}],"wp:attachment":[{"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/media?parent=274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/categories?post=274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sudhirkumarjain.com\/shop\/wp-json\/wp\/v2\/tags?post=274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}