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Which Are Earthquake Zones For Fire Insurance In India?

  • Author :
  • TATA AIG Team
  • Published on :
  • 11/04/2024
  • 2 min read

In India, much emphasis is placed on health and vehicle insurance. However, when it comes to property insurance, awareness and emphasis still need to catch up. Home insurance is significantly essential as natural calamities like earthquakes not only damage the home structure but can wreck homes completely, leaving the owners homeless.

Therefore, many non-life policies, such as property insurance, motor insurance, fire insurance, etc., offer protection from loss due to earthquakes. Since India is an earthquake-prone country, those with properties in an earthquake danger zone in India must have earthquake coverage.

Let us discuss the earthquake zones in India so you can decide if your property needs earthquake insurance coverage.

Which are the Earthquake Risk Zones in India?

India lies in an earthquake-prone zone, making it vulnerable to major earthquakes. The 2001 earthquake, with its epicentre in Bhuj, caused high-scale devastation in western and northern India and showed that the loss could be humongous.

Therefore, having insurance can prove beneficial for those staying in earthquake-prone areas, as the cost of insurance is much less than the cost of rebuilding a home destroyed by an earthquake.

For risk assessment and determination of insurance coverage, India is divided into 4 seismic zones. The list of earthquake zones in India is as follows:

Risk Zone Type of Risk
Zone I High damage risk
Zone II Moderate damage risk
Zone III Low damage risk
Zone IV Very low damage risk

Here is a list of earthquake-prone states in India based on the zones in which they belong to:

  • Zone I: Parts of Himachal Pradesh, North Bihar, Uttaranchal, Jammu and Kashmir, the Andaman and Nicobar Islands, and the Rann of Kutch in Gujarat.

  • Zone II: Delhi, Sikkim, Bihar, Northern parts of Uttar Pradesh, West Bengal, remaining parts of Jammu Kashmir and Himachal Pradesh, parts of Gujarat, some parts of Maharashtra (west coast), and Rajasthan.

  • Zone III: Goa, Kerala, Lakshadweep, remaining parts of West Bengal, Gujarat, Rajasthan, Punjab, Uttar Pradesh, Maharashtra, Orissa, Bihar, Jharkhand, Andhra Pradesh, Tamil Nadu, Karnataka, Madhya Pradesh, and Chhattisgarh.

  • Zone IV: Remaining parts of the country.

Earthquake Prone Cities in India

Here is a list of cities in India that fall under the earthquake-prone category:

  • Delhi

  • Kolkata, West Bengal

  • Imphal, Manipur

  • Guwahati, Assam

  • Bhuj, Gujarat

  • Amritsar, Punjab

  • Chandigarh, Punjab and Haryana

  • Dehradun, Uttarakhand

  • Srinagar, Jammu & Kashmir

  • Kohima, Nagaland

  • Sadiya, Assam

  • Port Blair, Andaman & Nicobar Island

  • Mandi, Himachal Pradesh

  • Jorhat, Assam

  • Tezpur, Assam

  • Darbhanga, Bihar

Understanding the Need for Fire Insurance Policy in Earthquake Zones

Since India is an earthquake-prone region, there are high chances of earthquakes. In many instances, earthquakes can also lead to an outbreak of fire due to gas leaks, short circuits, etc. Therefore, it is important to have an insurance plan to compensate for the loss occurring due to earthquake-induced fire peril.

Standard fire insurance policies offer protection from damage caused by lightning, storms, typhoons, hurricanes, earthquakes, etc. Besides, a fire induced by an earthquake can increase the property owner's financial losses. Therefore, buying a fire insurance policy with earthquake cover is crucial in earthquake-prone areas.

Property owners must opt for fire insurance to enhance their protection by covering the loss incurred by fire outbreaks caused due to earthquakes.

Important Aspects of Fire Insurance in Earthquake Zones

  • Changing Policy Deductibles and Limits - In earthquake-prone areas, insurance companies may enhance policy limits and deductibles. A policyholder must assess the extent of coverage and consider adding coverage if needed.

  • Extensions—In earthquake zones, standard fire insurance often merges extensions to cover losses caused by fires caused by earthquakes. Extensions are added coverage that enhances the scope of protection. The integration provides the policyholder with added financial coverage. Some examples of extensions to fire insurance include damage caused due to hail, windstorms, etc.

  • Rewards for Preventive Measures—Policyholders can benefit from the discounts and rewards offered by insurance companies for taking preventive steps to minimise fire risk within the property. For instance, an insurer may offer a discounted premium for installing fire-resistant roofs or having clear space around the property, etc.

  • Specific Requirements—In many cases, insurance companies may require the policyholder to implement earthquake-resistant measures, such as seismic retrofitting, to reduce the risk of fire. Compliance with these measures can result in reduced premium rates.

Conclusion

Natural and man-made disasters like earthquakes, cyclones, etc., can cause significant property and asset loss. Earthquakes can also lead to fire outbreaks leading to greater financial losses. A fire insurance policy covers earthquake peril, offering efficient property protection to the policyholder.

Tata AIG offers fire and burglary insurance, which includes protection from losses caused by fire outbreaks, burglaries, theft, earthquakes, etc. Thus, your property is protected against various perils under a single insurance plan. Buying insurance from Tata AIG offers a wide range of policies, a smooth claim process, a high settlement ratio, swift customer service, etc.

Businesses can also invest in an SME insurance policy to protect themselves from the financial losses caused by fire and other disasters. Insurance companies offer different types of policies and coverage according to customer and business needs.

Frequently Asked Questions

  • What assets are insured under fire insurance?

Under fire insurance, the assets insured include the building and its contents, such as furniture and fixtures, household equipment, machinery, stocks, and goods.

  • Should I buy separate fire insurance if I have a comprehensive policy?

No. A comprehensive insurance policy covers damage caused by fire. However, you must ensure your fire insurance also covers earthquakes.

  • What are the factors that determine the premium of fire insurance?

    • The factors that affect fire insurance are:

    • Risk at the location

    • Occupancy type

    • Add-ons chosen

    • Fire prevention measures on the property

    • Construction of the building

    • Previous loss history and claim record

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Your policy is subjected to terms and conditions & inclusions and exclusions mentioned in your policy wording. Please go through the documents carefully.

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