Fire and Engineering

• Risk Surveys for clients that help in controlling the risk exposure and managing them in a professional manner. In the long run, the clients benefit from this in terms of the "better insurance pricing" and "low loss incidents".
• Our Policy *wordings *not only bring clarity in the insurance programme, but also give flexibility to the client to pick and choose covers, suitable to exposures. Add on covers supports the exigencies of the today’s insurance requirements and meet some special insurance demands, which make the product wholesome and comprehensive.
• Our Global Insurance Program addresses the client’s insurance requirement for their assets spread worldwide and is well supported through network of offices in more than 140 countries.

Our Global Insurance Program

"Global Insurance Programme" is our unique selling proposition attracting the clients, who have their spread of business in various countries. This brings a lot of comfort for the clients to mandate just one insurer like us to manage their world wide insurance requirements.

The geographical spread of our operating offices in every corner of the world makes the management of this insurance requirement hassle free, cost effective and concurrent with the overall expectations of the programme. Multinational / Global Programme written out of India provides insurance cover for the risk located outside Indian Territory along with the insurance for Indian assets.

It ensures consistency in coverage and risk philosophy. Thus, it is ideal to have a Multinational Insurance Program devised for assets located outside India.

The program could be tailor-made to suit the requirements and also comply with the local regulations. The Global Master Program provides the following benefits:

• Uniform coverage, consistent with Corporate Risk Management Philosophy. Thus, a uniform worldwide risk management program.
• Lower cost as a result of "Bulk Buying Power", thus controlling insurance costs.
• Premiums and claims could be paid locally.
• Improved management control and complete communication.
• Tailored to suit client’s needs.
• Uniform service levels.
• Centralized control of worldwide insurance exposures.
• Consistent coverage for all operations worldwide.

Eligibility: Clients who have assets outside India along with Indian assets and want to ensure consistent coverage across their units globally

Risk Engineering Survey The purpose of this section is to give the reader an overview of risk engineering survey provided to our underwriters and the clients. We recruit the engineers, mostly as members of the property department and engage them in property surveys on behalf of the local underwriting group. The philosophy of risk engineering is to supplement the efforts of the underwriters in realizing the set ‘profit and growth’ by providing technical support to them per se, and by providing value addition to the client’s risk management process. It is often said that the risk engineers are the ‘eyes and ears’ of the property underwriter who needs to underwrite the risk after fully understanding a risk. To put it succinctly the main objectives of risk engineering is to assess the quality of risk and to enable underwriter to write the risk and arrange suitable reinsurance Program. While smaller and not so complex risks can be assessed based on the proposal forms or based on the producer’s report, it will be difficult / unreliable to do so in case of major accounts and the cost of an error in underwriting such major risks would far outweigh the cost of a survey. Remotely assessing the risk without visiting the same is nearly impossible as each risk or account is unique by itself based on the process, the practices and the people.

The survey is taken up based on the ‘survey request’ received from the underwriter for both property damage and business interruption risks. The survey intends to serve the underwriter and the client in respect of the following ways.

• To make an on site study and evaluation of the various exposures like fire, flood and specific exposures if any, incorporating various underwriting information in the report to enable the underwriter to prudently decide on the acceptability or otherwise of the risk. The quantitative risk rating on a 5 point scale provided in the report helps the underwriter to quickly make up their mind on the ‘overall opinion of the risk’. The report lists in detail the major undesirable features of the risk, surrounding exposures, various occupancy hazards and other loss potentials.

• As a logical sequence of exposure analysis and establishment of various pure risks, risk control measures are conveyed to the client or the prospect to mitigate the risk. The client sees a great value addition in this as very often the insurer gives this service free of cost. The recommendations broadly fall under ‘Human element recommendations’ and ‘Physical protection recommendations’. While the later needs some capital expenditure and planning, the former can be implemented easily.

• The survey report is valued by the underwriter for both the above two aspects while the client mainly values the report for the later.

Provision of inputs to the insurer in respects of limits, risk selection and rating is in the scope of survey. Specifically the survey brings out the COPE factors of a risk i.e. Construction, Occupation, Protection and Exposure. Property engineers have to establish the protective measures which are available at a given location and assess their adequacy, quality and reliability in relation to the property being insured. The local codes and laws of the country provide for certain standards and the engineers are to be familiar with such requirements. For underwriting purpose the protection to be checked includes automated sprinkler systems. Fire hydrant systems, Water supplies, Fire alarm systems, Public and or Private fire brigade protection, First aid and other fire protection topics, Special fire protection systems, Inspection and maintenance of the systems etc. Although the survey generally considers protection against fire, property engineers must be alert to other perils like Earthquake, Flood and Cyclone and make a mention in the report.

In another area where the survey helps, is in making the various loss estimates for the risk. The survey report brings out Maximum Amount Subject (MAS), Maximum Foreseeable Loss (MFL) and the Probable Maximum Loss (PML) using the well defined guidelines in our survey manual, combined with the judgment of the inspecting engineer. The loss estimates help the underwriter and the re-insurer to decide the level of retention, cession and the overall underwriting capacity.

Incidentally an enormous amount of useful data is generated during a survey and hence in the long run the survey process would help in settling up a database of all the property risks inspected in the country and would help in deciding the focus area and plan out the business strategies. The de-tariffing of the fire portfolio call, for per se rating of each risk based on the risk factors of individual risk in a competitive manner. This would mean that a risk needs to be necessarily looked at from a risk management perspective and hence risk engineering would be called to play a vital and larger role in a deregulated market. As a visionary insurer we can inspect as many risks in the country and quickly compile a ‘report guide’ which will help in developing a ‘rating guide’ and position ourselves strategically to meet the challenges of competition in the deregulated market.

Property Risk Information:

• Construction - Type of Construction
• Occupancy - The Manufacturing Activity
• Protection - Fire Protection and Safety Measures
• Exposure - Surrounding and Catastrophe
• Process description
• Policy Details - Sum Insured
• Loss History / claims experience
• Insurance solutions for Chemical Units

Under this line of business, we provide coverage for companies who manufacture organic or inorganic chemicals used in the manufacturing of finished chemical or pharmaceutical products.

Major Industries coming under this category would include:

• Industrial inorganic chemicals
• Plastic materials and resins
• Paints, lacquers, varnishes
• Pesticides and other agricultural chemicals
• Man-made cellulose fibers and synthetic fibers
• Industrial gases
• Pharmaceuticals (both formulations & Bulk drugs)
• Miscellaneous chemical products

Insurance Policies offered to these industries include:

• Standard Fire & Allied Perils Insurance
• Fire Loss Of Profits / Business Interruption Insurance
• Industrial All Risk (IAR) Insurance
• All these policies are Tariff Products and governed & regulated by Terms and conditions as laid down by IRDA.

Insurance solutions for Utilities – Power Plants Under this line of business, we provide property and breakdown insurance covers for most utilities and power generation risks.

Insurance Policies offered to these industries include:

• Standard Fire & Allied Perils Insurance
• Fire Loss Of Profits / Business Interruption Insurance
• Industrial All Risk (IAR) Insurance
• All these policies are Tariff Products and governed & regulated by Terms and conditions as laid down or modified from time to time by IRDA.

Insurance solutions for Oil And Petroleum Under this line of business, we provide cover to industries from Oil & Fertilizer sector. This may include:

• Pipelines and terminals for the distribution to refining of crude natural gas/petroleum products
• Petrochemical Complexes including Refineries etc. encompassing cracking of various
• Hydrocarbons and the resulting production of petrochemicals
• Pesticides and other agricultural chemicals
• Risks associated with storage terminals
• Fertilizer Industries

Insurance Policies offered to these industries include:

• Standard Fire & Allied Perils Insurance
• Fire Loss Of profits / Business Interruption Insurance

Industrial All Risk (IAR) Insurance

All these policies are Tariff Products and governed & regulated by Terms and conditions as laid down by IRDA. Insurance solutions for Other Manufacturing Plants Under this line of business, we provide coverage for companies who manufacture pulp & paper, steel & aluminum mills.

Major Industries coming under this category would include:

• Pulp & paper Mills/ downstream
• Steel & Aluminum & basic metal Mills
• Rolling, drawing & extrusion mills
• Manufacture &/or assembly of computer chips

Insurance Policies offered to these industries include:

• Standard Fire & Allied Perils Insurance
• Fire Loss Of Profits / Business Interruption Insurance
• Industrial All Risk (IAR) Insurance
• All these policies are Tariff Products and governed and regulated by Terms and conditions as laid down by IRDA.

Things to look for before buying Fire & Engineering Insurance:

• Fire and Allied Perils Protection
• Boiler and Machinery Protection
• Multinational Insurance Programme
• Pesticides, Chemical & Industrial Gases Protection
• Business Interruption Cover
• Contractor’s All Risk protection
• Consistent Coverage of Operations Worldwide

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