Features
The scope of cover is limited to Burglary and House breaking only. The scope
is to be distinguished from other related perils like theft, larceny, Robbery,
Dacoity, which are all not covered by the definition.
Damage to property
by burglars is covered only when the insured is required to be made good. In other
words damage to own premises is not covered.
The claim amount reduces
sum insured every time a claim is paid. However the sum can be reinstated on payment
of pro rata additional premium.
Property insured is covered only when
it is lost from the insured premises and not from any other premises.
With regard to cash in locked safe, the key to the safe or strong room should
not be left in the premises overnight or at least anywhere near the safe.
Benefits
Banking insurance institutions will insist upon
both Fire policies and burglary insurance policies as collateral securities before
granting cash advances on the stocks of the insured.
In the cases, which
are of low value in high bulk, (such as cotton in bales, grain, sugar etc.) the
risk of loosing the entire stock on a single occasion is considered remote. It
is then ascertained the value that can be burgled as probable maximum loss and
the premium is charged for this Maximum probable loss while covering the entire
stock at risk. It is assumed that a second burglary may not follow immediately
or the insured may take additional security measures from its recurrence.
Policies can also be issued on declaration basis where the stocks undergo
wide fluctuations.
Claims
There is no policy excess.
In case of minor claims up to Rs.2500/- the insurer will accept the completed
claim form from insured and pay the claim. In all other cases, it is a policy
condition that police report must be lodged and FIR of police and non-detection
from the police must also be produced. The insurers will depute and obtain a survey
report even on the stolen goods to determine the proximate cause of the loss and
the quantum as also verification of stock books and other accounts.
Requirements
The proposal form containing very detailed information
on the location of the risk and claims history. Often inspection of the premises
and its neighborhood is considered very important. Premises located in isolated
areas or the adjoining premises are such which are not occupied in the night (like
educational institution or a place of worship) are not considered with favour.
Recommendations The
policy is indispensable, and more so when the property is pledged with a financial
institution. Normal security arrangements are necessary for an insurer to accept
the proposal for insurance. Even if elaborate security system is planned, the
cost of such system will not be as expensive as the premium paid for the Burglary
policy, as the risk is dispersed and distributed among the insuring public. In
any case, good security system will benefit the insured in fixing the premium
rating.
|