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Classification of Fire Insurance Policy

1. Specific policy: Under such policy, the specific amount of money as indemnification is provided. For example, the specific policy of fire insurance is purchased at TK. 40,000. If the loss occurred by fire destruction at TK. 30,000, the insured will get TK. 40,000 as indemnification. But if the amount of loss is TK. 50,000 the insured will get the same amount TK.40, 000 under such policy.

2. Floating policy: One owner, several assets, positioned in several places ( factory, inventory, store, port, transportation)-for such criteria the integrated policy which has taken for protecting the risk rather than individual policy, is called floating policy. For such policy, average premium is considered. 3. Restatement policy: Under this policy, for indemnification not to provide money but to remake or repurchase the assets which are destroyed by fire. This policy is issued for equipment, machineries or infrastructure. 4. Electric clause policy: The infrastructure, factory, stores, inventory and other properties could be destroyed by electric short-circuits. In order to protect from such risk, the policy insured used to collect from the insurer is called electric clause policy. 5. Blanket policy: Several subject matters but positioned in one place ( raw materials, goods, packaging, equipment-machineries, furniture etc positioned in a factory)- for such criteria the integrated policy which has taken for protecting the risk rather than individual policy, is called floating policy.

Few Important words used in Fire Insurance: 1. Miss-description: Various information are provided by the insurer and the insured in the fire insurance policy, which should be relevant and full information. For this reason, the word Missdescription is used to mention. 2. Exclusion: It means leaving or eliminating something. In case of fire insurance policy, exclusion means to exclude several subject-matters for which the policy is not insured. Like Earthquake, natural hazards, riots or commotion. Black or illegal assets. Fire-works. 3. Fraud: It indicates the punishment against fraud. In fire insurance, if the insured provides fake information or destroys assets intentionally, in this manner the policy will be dismissed.

4. Claim: After occurring risk by fire destruction, the insured used to claim for indemnification. Thats why in insurance Claim is another important common word. But In fire insurance, there are several ways to claim for indemnification After occurring loss, the insured should provide a statement of loss to the insurer. The report should provide within thirty days of occurring the loss. Should attach the proper evidence of the loss. 5. Mafashwal discount: The discount is provided to the mafashwal or rural areas people to be interested in taking fire insurance policy. As the level of risk is comparatively low in mafashwal area than urban, such discount on premium is provided.