Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

The Tariff classifies ?Flammable? materials into Classes A, B, C, D according to their flash point.
Silent Risks: The risk is deemed silent only if all the hydrocarbon / flammable materials / combustible materials have been removed and it has been purged (i.e. all apparatus and piping have been thoroughly cleane before the inception of silent period and would continue to be so throughout the silent period.
Rating: The basic rate for each petrochemical plant is arrived at on the basis of the following factors: i. Properties of chemicals; ii. Quantity of flammable materials handled; iii. Type of each identifiable process / operation; iv. Temperature and Pressure; v. Material of construction
Excess Clause: The insurance does not cover 5% of the claim amount subject to minimum of Rs. 5 lakhs resulting from each and every loss in material damage insurance for all perils. The excess is applicable per event and per insured.
All industrial risks (other than risks rateable under Petrochemical Tariff) having overall Sum Insured of Rs. 100 crores and above in one or more locations in India shall be eligible for Industrial All Risks Policy.

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