What points to keep in mind while buying the policy?
- Coverage of a minimum 3 sections is compulsory, including Section 1 Part A.
- The insured premises are required not to be ‘kutcha’ construction, as per the guidelines outlined in the Fire Tariff.
- The insurance coverage offered for Fire and Burglary Sections is provided only on a First Loss Basis, with the insured amount representing 50% limit of total value at risk. Underinsurance would be applicable in case the value at risk is below the said parameter.
- Claim settlement for sections 1, 2 and 3 shall be on a Market Value basis only.
- For Sections 1 and 2, the insurer’s liability in case of loss and/or damage to jewellery shall not exceed 20% of the sum insured as per the guidelines set in the said sections. The jewellery items’ Market Value shall form the basis of claim settlement.
- In order to claim coverage for Personal Accident and Critical Illness Sections, the age limit of the claimants can be between 5-65 years only.
- Under Section 6, the coverage for tractors shall be on a comprehensive basis, i.e. Own Damage along with Third Party Liability.
- Insurance cover for tractors older than 10 years is to be avoided.