Transcript Anabil Bhattacharya

SEMINAR ON FIRE SAFETY–MITIGATING FIRE HAZARDS
FACETS OF FIRE INSURANCE AS A COLLATURAL SECURITY
FOR PROPERTIES AND ELIGIBILITY CRITERIA OF
COMPLIANCE FOR AVAILING F.E.A. DISCOUNTS IN
GENERAL INSURANCE INDUSTRY.
ANABIL BHATTACHARYA,
B.M.E. (Hons.), F.I.I.I.,
CHIEF MANAGER, H.O. , N.I.C.L. , KOLKATA
14TH MAY, 2015
THURSDAY
INSURED’S RESPONSIBILITY AS
GENERAL INSURANCE POLICYHOLDER
Principle of insurance says that – even if a
Fire Insurance Policy is taken by any person
covering his / her premises / properties,
subsequently in case of any fire incident,
he/she must behave as if he / she is
uninsured. So all necessary precautions is
always expected that he/she must be aware
about all the issues relating to inception,
contributory, special, natural & moral
hazards of Fire incidents to occur.
ANABIL BHATTACHARYA
What is Fire
Risk?
ANABIL BHATTACHARYA
FIRE RISK – HAZARD LINK IN
INSURANCE
FIRE PERIL
ASSET
LOSS / LIABILITY
HAZARD
FINANCIAL LOSS
ANABIL BHATTACHARYA
INCEPTION HAZARDS
Those give rise of fire incident are listed below:
ELECTRICITY
FIRE
SMOKING
FIRE
FRICTION
FIRE
OVERHEATING
FIRE / EXPLOSION
HOT SURFACES
FIRE
WELDING
FIRE
SPARKS (ELECTRICAL / MECHANICAL)
FIRE
CHEMICAL ACTION
FIRE / EXPLOSION
STATIC ELECTRICITY
FIRE
LIGHTNING
FIRE / COLLAPSE
BURNER FLAMES (BOILER / OVEN / DRIER)
FIRE
ANABIL BHATTACHARYA
CONTRIBUTORY HAZARDS
Those increase the spread & volume of fire.
•POOR CONSTRUCTION OF BUILDINGS ( INFERIOR
MATERIAL / WOOD / TIMBER / PLASTIC SKY LIGHTS / GLASS
FACADES)
•FALSE CEILING / INTERNAL PARTITIONS/ WOODEN LINING
•LOCATED IN A DIFFICULT TERRAIN / CROWDED PLACE
•HIGH DENSITY FIRE LOAD (SOLVENTS / CHEMICALS)
•DUCTS FOR AIR CONDITONING, DUST, VAPOUR
•BAD HOUSE KEEPING, DRY GRASS, CONGESTED LAYOUT
CONTRIBUTORY HAZARDS
Those increase the spread & volume of fire.

UNATTENDED AREAS

ABSENSE OF SAFETY DEVICES, FIRE FIGHTING
EQUIPMENTS

NO FENCING, NO SECURITY ARRANGEMENTS

NO LIGHTING

NO PROPER WASTE DISPOSAL METHODS

NO WORK PERMIT SYSTEMS

RIOT / STRIKE / VANDALISM
ANABIL BHATTACHARYA
SPECIAL HAZARDS
Those are potential to fire incidents & makes fire fighting process
difficult.
BULK STORAGES (COAL IN OPEN, SOLVENT TANKS, LPG
TANKS)
COMPLEX CHEMICAL PROCESS ( REFINERY / FERTILISER /
SOLVENT EXTRACTION)
SPRAY PAINTING OPERATIONS
PULVERIZING OPERATIONS
MATERIAL SUCEPTIBLE TO SPONTANEOUS COMBUSTIONS
POLLUTION AND CONTAMINATION RISKS
ANABIL BHATTACHARYA
NATURAL HAZARDS
Those are always present as natural calamity making us helpless.
FLOOD , STORM, CYCLONE, HURRICANE
INUNDATION
EARTHQUAKE, VOLCANIC ERUPTIONS
SNOW / FROST / ICE STORMS
LANDSLIDES / ROCK SLIDES
SUBSIDENCE
FOREST FIRE / BUSH FIRE
ANABIL BHATTACHARYA
MORAL HAZARD MINIMIZATION
Since the moral hazard cannot ruled out in Fire insurance parlance the
insurers only try to mitigate the same through following procedures:
•LOSS EXPERIENCE RATING
•PARTIAL RISK SHARING
•CREDITS FOR LOSS CONTROL
•CLAIMS INVESTIGATION
•CRIMINAL PROSECUTION
ANABIL BHATTACHARYA
ELIGIBILITY CRITERIA OF FIRE EXTINGUISHING APPLIANCES DISCOUNTS :
Types Type of installation - Arrangement to be Discount
made
(allowed in %)
on
Fire
Insunce
Premium Rate
a)
Hand Appliances (as per thumb rule) &
Trailer Pumps/ Fire Engines (as reqd. as
per layout).
Hand Appliances & Hydrant System.
2.5
c)
Hand Appliances & independent
Sprinkler / Fixed Water Spray System.
7.5
d)
Hand Appliances + Hydrant System &
independent Sprinkler / Fixed Water
Spray System
10
b)
5
ANABIL BHATTACHARYA
CURRENT CONSTRAINTS IN THE DE-TARIFF
REGIMNE OF INSURANCE:During the de-tariff regime that started w.e.f. 1ST
January, 2007, Fire Insurance premium is now
highly discounted at the back-drop of stiff
market competition, thereby, further reducing the
applicable discount on account of Fire
Extinguishing Appliances – so it may be harped
on that the insured may not be interested to
install Fire Extinguishing Appliances to get
discount
but
for
the
normal
safety
consciousness the installation of these
extinguishers are highly required.
ANABIL BHATTACHARYA
ANABIL BHATTACHARYA