Fire Insurance is a contract between the insurer and the insured to compensate for the loss which occurs by the fire in return of the consideration (Premium) which is paid by the insured.
When any loss occurs in the fire then insured should inform the insurer about the loss. After knowing the loss, insurer appoints the assessor to examine the facts and to determine the claim amount. The assessor is empowered to make necessary arrangements on behalf of the insurer.
The assessor takes the following steps to check the whole things:
- He visits the site and collects the correct information about the incident.
- He determines the origin and cause of damage.
- He checks whether the Fire Insurance Policy is in force on the date of the incident.
- Loss or damage is by the peril insured by the policy.
- The property affected by the loss is same as insured under the policy.
- Notice of loss is received without any delay.
The insured are advised to separate the undamaged part from the damaged part to reduce the possibilities of further damage and to evaluate the amount of loss correctly.
After the initial check up, a number is allotted to the claim and entered in the register of claims. A separate docket is opened for filling the claim papers. Then a claim form is issued to the policyholder which requires the following information.
- Description of circumstances of the loss such as Date & place of the event.
- Description about the cause of fire
- Damage caused by the fire, value of asset at the time of fire & value of salvage and the claim amount.
- Name of other insurance provider on that property and the statement of that insurance, policy number with sum assured.
- Value of all the property.