Fire and Consequential Loss Insurance - IC 57 Exam Study Notes

The cover in its widest form will include the following perils/covers: i. Compulsory: Fire and All Special Perils, Burglary (free), Machinery Breakdown / Boiler Explosion / Electronic Equipment Insurance, Fire loss of profit (Compulsor ii. Optional: Machinery Loss of Profit cover
Following clauses will have to be attached to the policy and the insured will have to adjust or provide additional sum insured where applicable i. Agreed Bank Clause; ii. ?Architects?, Surveyors? and Consulting Engineers? Fees Clause; iii. Designation of Property Clause; iv. Omission to Insure Additions, Alterations or Extensions Clause
Rating: Rates for this policy are based on: i. The detailed Risk Assessment Report of the Engineer; ii. Deductible opted by the insured; iii. Claims experience
Sum insured: The policy in so far as it relates to Buildings, Machinery, Furniture, Fixtures, Fittings and Electrical Installations shall be on Reinstatement Value Basis only, while the Stocks shall be covered on Market Value basis.
There is no Fire Tariff in the U.K. However, to have some uniformity, The Association of British Insurers (ABI) has issued a book 'The Recommended Practices, Wordings and Procedures relating to Material Damage.'

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