This insurance is vital especially when the property is pledged with a financial institution and covers stock in trade, goods held in trust or on commission, fixtures & fitting and utensils of trade and is aimed for business premises. It insures against goods which In the case of goods, which are of low value in high bulk, such as cotton in bales, grain and sugar and guards against the the risk of losing the entire stock
- It cover however excludes dangers like larceny and is limited to house breaking and burglary and when Property insured is lost from the insured premises alone.
- As it the case with most covers, the amount to be claimed reduces every time a claim is paid. although the sum can be reinstated on payment of pro-rata additional premium.
What is the Premium?
- The benchmark rate is flexible and ranges from 0.35% to 0.75% for a standard risk depending on the proportion the maximum Probable Loss . A discount may also be offered.
- Each application is considered on its merit and the tariff is not regulated Factors that could be considered include the measures & precautions taken, history of any previous claims, assessment of the risk situation the type of property and possibility of its easy sale, ), security, and the client himself.
The applicant must complete the proposal form and ensure detailed information on the location of the risk and claims history is provided. Normal security arrangements are necessary for an insurer to accept the proposal for insurance and bear on the fixture of premium rating .
An inspection of the premises and its neighborhood is usually carried out, with those in isolated areas or the adjoining premises and those vacant during the night like educational institutions or places of worship not being preferred.