Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

If insurance is cancelled at the option of i. The insured: Retention of premium shall be at short period scale, ii. The insurer: Refund of premium shall be on pro-rata basis.
Pro-rata refund of premium may be allowed if a policy is cancelled i. On account of a Government order, or ii. On completion of a 'Building in course of construction, or iii. Where building is demolished
Generally, it is not permissible to grant mid-term cover for STFI and/or RSMTD perils. However, where such covers are granted mid-term, the following provisions shall apply: i. Insurers must receive specific advice from the insured accompanied by payment of additional premium in cash or by a demand draft, ii. The cover shall be granted for the entire property under one or more policies, iii. Cover shall commence 15 days after the receipt of premium, iv. Premium rates shall be charged on short period scale on full sum insured for the balance period i.e., up to the expiry of the policy.
Mid-term increase in sum insured is allowed on pro-rata basis, while decrease in Sum insured is permitted on short period basis.
Risks in Multiple Occupancy Industrial Estate shall be rated 'Per Se'.

Important Points for IC 57 - Fire and Consequential Loss Insurance Exam