• RATE FOR SHORT PERIOD INSURANCE

Policies for a period of less than 12 months shall be issued at the rates set out hereunder

Floater Policy(ies) can be issued for stocks at various locations under one Sum Insured.
Note: Unspecified locations shall not be allowed.

1.The Rate shall be the highest rate applicable to Insured stocks at any location with a loading of 10.  2.Earthquake : Highest rate amongst the category plus 10% loading.
3.For Central/State Warehouse Corporation, Marketing Federation owned by State Government: Refer circular of H.O./Tech/RSMD dt. 4-7-2001.

To take care of frequent fluctuations in stocks/stock values. Declaration Policy(ies) can be granted subject to the following conditions.
a) The minimum sum insured shall be Rs.1 crore in one or more locations and the sum insured shall both be less than Rs.25 lacs in atleast one of these locations. It is necessary that the declared values should approximate to this figure at sometime during the policy year.
b) Monthly declarations based on i) the average of the value at risk on each day of the month or ii) the highest value at risk during the month shall be submitted by the Insured latest by the last day of the succeeding month. If declarations are not received within the specified period, the full sum insured under the policy shall be deemed to have been declared.
c) Reduction in sum insured shall not be allowed under any circumstances.
d) Refund of premium on adjustment based on the declarations/cancellations shall not exceed 50% of the total premium.
e) The basis of value for declaration shall be the Market Value anterior to the loss.
f) It is not permissible to issue declaration policy in respect of
   i. Insurance required for a short period
  ii. Stocks undergoing process
  iii. Stocks at Railway sidings.   

g)If after occurrence of any loss it is found that the amount of last declaration prior to the loss is less than the amount that ought to have been declared, then the amount which would have been recoverable by the Insured shall be reduced in such proportion as the amount of said last declaration bears the amount that ought to have been declared         

FLOATER DECLARATION POLICIES

Floater Declaration policy(ies) can be issued subject to a minimum  sum insured of Rs.2 Crores and compliance with the Rules for Floater Policies and the Declaration Policies.  Minimum retention shall however be 80% of the annual premium.

Risks having sum insured (on buildings and contents of all blocks in one compound of one complex in one location) above Rs. 50 Crores rateable under Sections IV, V, VI & VII of this tariff shall attract claims experience discounts/ loadings based on the incurred claims experience of the policies covering the Insured interest for the preceding 36 months excluding the expiring policy period which shall not be less than 9 months (If there is any break in insurance, available months experience shall be taken into account) as per the table given below:

Note:-

1. In case the claim experience exceeds 200% additional excess 2.5% of the claim amount of each and every claim subject to minimum of Rs. 10,000/- shall apply (i.e., minimum total excess of Rs. 20,000/-).
2. The above loading will not be applicable for dwellings.

In the extent of the insured transferring his insurance on renewal from one insure to another insurer, the transferee insurer may allow claims experience discount/loading on the of the claims experience details from the previous insurer(s).  Evidence of the insured entitled for claims experience discount/loading in the form of a letter confirming the claims experience details from the previous insurer(s) will be required for this purpose.

Where the insured is unable to produce such evidence of claims experience details from the previous insurer(s), the present insurer may allow claims experience discount/loading as applicable after obtaining written declaration from the insured as below:

We declare that the claims experience details for previous 36 months period excluding the expiring policy and discount/loading (strike out whichever is not applicable) claimed by me/us are correct (copies of the previous policies enclosed).   I/We further undertake that if this declaration is found to be incorrect, all benefits under the policy will stand forfeited.

Notwithstanding the above declaration, the insurer allowing the claims experience discount/loading will be obliged to write to the policy issuing office of the previous insurer by recorded delivery calling or confirmation of the claims experience details and the previous insurer shall be obliged to provide the information sought within 30 days of the receipt of the letter of inquiry failing which the matter will be treated as a breach of tariff on the part of the previous insurer.  Failure of the insurer granting the claims experience discount to write to the previous insurer within 21 days after granting the cover will also constitute a breach of the tariff.  The aggrieved insurer is required to report the breach to TAC immediately.

The above revision is effective for all new business / renewals falling due on or after 16-4-04.

 RATING OF RISKS IN MULTIPLE OCCUPANCY INDUSTRIAL ESTATE

Risks in Multiple Occupancy Industrial Estates shall be rated.If the entire building of the Industrial Estate is insured under one sum insured, a rate of Rs. 1.80% shall be charged to the Building.

SILENT RISKS

Risks rateable under Sections IV and V are allowed salient rates as per the following table.

The silent rates are not applicable if a risks goes silent following a lose under the Policy.  Risks becoming silent shall not be entitled to any discounts.  It is permissible to exclude RSMD & STFI perils in respect of Silent Risks at the inception of the policy only.  Deletion facility of STF/RSMD is available only for Sec. IV & V of tariff.

VOLUNTARY DEDUCTIBLES

Insurers may consider on receipt of application from the insured, discount for voluntary deductibles as per the scale shown in the table below. The discount are applicable over the Standard Fire and Special Perils Policy Rates as well as for the add-on covers rates.

(a) Table of discounts for Voluntary Deductible