FIRE CIRCULARS - 2003

Cir No Date Subject Effective Date
FT/1/2003 17-3-2003 Rating of standalone LPG Recovery Plant 17-3-2003
FT/2/2003 17-3-2003 Coverage of goods held in trust or on commission -General Exclusions No. 5 under Section II -(A) of AIFT 17-3-2003
FT/3/2003 17-3-2003 Pro-rata extension/cancellation of IAR Policy to coincide with financial year 17-3-2003
FT/4/2003 7-4-2003 Rating of Electronic Software Parks 7-4-2003
FT/5/2003 7-4-2003 Voluntary Deductible Scheme for Consequential Loss (Fire) Policies for risks other than Petrochemical risks. 7-4-2003
FT/6/2003 7-4-2003 Industrial All Risks Policy - Amendment of Extension 3(g) under ‘Excluded Property’. 7-4-2003
FT/7/2003 16-4-2003

Consequential Loss (Fire) Tariff -Extension to cover Supplier’s premises

16-4-2003
FT/8/2003 11-6-2003

Inspection of Fire Losses by Engineers of TAC

11-6-2003
FT/9/2003 17-6-2003

Rating of Plastic Goods Manufacturing (excluding Foam Plastics)

17-6-2003
FT/10/2003 20-6-2003 'File & Use' System for Comprehensive Insurance Package Policy for Mega Risks  

FT/ 1 /2003                                                                         Date :17-3-2003

Re: Rating of standalone LPG Recovery Plant

Tariff Advisory Committee has amended the existing tariff entry "Liquified Gas Bottling Plant" with Risk Code 119 and Rate Code 15 under Section IV of the AIFT. The tariff entry is amended to read as under:

Risk Code Rate Code Description of Risk Rate (Rs. Per mille)
119 15 Liquified Gas Bottling/Recovery Plant 4.50

Insurers are requested to make a note of the change and advise the operating offices accordingly.

                                                                                                                                    Secretary

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FT/ 2 /2003                                                                     Date : 17-3-2003

Re: Coverage of goods held in trust or on commission -General Exclusions No. 5 under Section II -(A) of AIFT

Tariff Advisory Committee has modified General Exclusion No.5, of Standard Fire and Special Perils Policy under Section II of the AIFT. The modified provision is as follows:

"Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an amount exceeding Rs.10,000/-, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer system records, explosives unless otherwise expressly stated in the policy."

Insurers are requested to make a note of the change and advise the operating offices accordingly.

                                                                                                Secretary

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FT/ 3 /2003                                                                         Date :17-3-2003

Re : Pro-rata extension/cancellation of IAR Policy to coincide with financial year

Arising out of query raised by one of the insurers, Tariff Advisory Committee has clarified that IAR Policy can be extended or cancelled on pro-rata basis in order to coincide with the financial year of the insured. The insured can however exercise this option only once.

                                                                                             Secretary

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FT/ 4 /2003                                                                         Date:7-4-2003

Re: Rating of Electronic Software Parks

Tariff Advisory Committee has amended the tariff item "Electronic Software Parks" appearing under Section IV of All India Fire Tariff to read under :

 

Risk Code

Rate Code

Description of Risk

Rate (Rs. per mille)

073

04

Electronic Software Development Unit/s

1.25

 

Insurers are requested to make a note of the above change and advise their operating offices accordingly.

Secretary

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FT/ 5 /2003                                                                             Date : 7-4-2003

Re : Voluntary Deductible Scheme for Consequential Loss (Fire) Policies for risks other than Petrochemical risks.

Tariff Advisory Committee has decided to introduce Voluntary Deductible Scheme for Consequential Loss (Fire) policies for risks other than those rateable under Petrochemical Tariff. The scheme is as follows:

Table of discounts for Voluntary Deductible

Deductible

Discount (%)

i) 7 days Gross Profit subject to minimum of Rs.10 lakhs

2.5

ii) 14 days Gross Profit subject to minimum of Rs.20 lakhs

5

iii) 21days Gross Profit subject to minimum of Rs.30 lakhs

7.5

iv) 28 days Gross Profit subject to minimum of Rs.35 lakhs

10

v) 35 days Gross Profit subject to minimum of Rs.40 lakhs

15

vi) 60 days Gross Profit subject to minimum of Rs.45 lakhs

25

 

N.B. 1 : The discount shall not exceed 25% even if the insured selects a deductible higher than that given under sub item (vi) above.

N.B. 2 : Voluntary Deductible once opted shall apply to the entire property insured and no selection shall be allowed.

Insurers are requested to make a note of the change and advise their operating offices accordingly

Secretary

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FT/ 6 /2003                                                                     Date :7/4/03

Re: Industrial All Risks Policy - Amendment of Extension 3(g) under ‘Excluded Property’.

Tariff Advisory Committee has amended the wording of exclusion 3(g) under "Excluded Property" of IAR policy by deleting the words "repairs, alterations and servicing" from the said exclusion The amended wording of exclusion 3(g) reads as follows:

"property undergoing testing installation including materials and supplies therefore if directly attributable to the operations of work being performed thereon unless damage by a cause not otherwise excluded ensues and then the insurer will be liable only for such ensuing loss."

Insurers are requested to make a note of the change and advise their operating offices accordingly.

Secretary

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FT/ 7 /2003                                                 Date : 16-4-2003

Re : Consequential Loss (Fire) Tariff -Extension to cover Supplier’s premises

Following TAC’s decision to rate non-petrochemical plants under petrochemical tariff, Note nos. 4,5 & 6 appearing below N.B. 2 of Rating Schedule for "Extension to cover Supplier’s premises" of Consequential Loss (Fire) Tariff have become redundant . TAC has therefore deleted Note nos. 4, 5 & 6 from C.L. (Fire) Tariff.

 

Insurers are requested to take a note of the above change and advise their operating offices accordingly.

Secretary

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FT/8/2003                                                                                  June 11, 2003

                Re : Inspection of Fire Losses by Engineers of TAC

            As  Insurers  are aware, the TAC has a system of inspecting fire losses exceeding Rs.1 crore.  The main aims of the inspections are  :-

 1.      Building-up data base on large losses for use by TAC

 2.      Ensuring compliance with Tariff provisions

 3.  Examining efficacy of TAC’s regulations on fire protection systems, rules for electrical installations etc.           

 Chairman, IRDA/TAC approved streamlining the procedure for large loss inspections by TAC as under :- 

     Insurers or their operating offices must intimate such losses so as to to reach the nearest office of TAC within 48 hours of the occurrence of the loss.  A copy of the intimation must be sent to Head Office of TAC.

2.  The concerned office of TAC will initiate steps to inspect the loss within 48 hours of the receipt of such intimation.

No report or any other advices will be issued by TAC where the loss has not been actually inspected.

The report of TAC Engineer will be confined to the physical description of the loss,  possible cause/s of the loss, measures for risk improvement, compliance with tariff rates/provisions and comments on efficacy of TAC’s regulations on fire protection systems, rules for electrical installations etc.  The report will not comment on survey or investigation aspects of the loss.

Insures are advised to inform their operating offices suitably.

                                                                                                     SECRETARY

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FT/ 9/2003                                                                                        Date :17-6-2003

Re : Rating of Plastic Goods Manufacturing (excluding Foam Plastics)

Arising out of representations from insurers, Tariff Advisory Committee has amended the existing tariff entry "Plastic Goods Manufacturing (excluding Foam Plastics)" with Risk Code 148, and Rate Code 12 under Section IV of the AIFT with immediate effect. The amended tariff entry reads as under :

Plastic Goods manufacturing (excluding Foam Plastics)

Risk

Code

Rate

Code

Description of Risks

Rate 

Rs. (per mille)

148

09

 

 

 

 

I. Using Plastic raw materials having calorific value upto 15000 btu/lb

Polytetrafluoroethylene,Polychlorotrifluroehtylene, Polyvinyl chloride, polyvinylidene chlororide, Polyvinylidene fluoride, Chlorinated polyether, Polycarbonate, Polymethyl methacrylate, Phenol-formaldehyde, Urea-formaldehyde, Melamine-formaldehyde , Polyurethane, Polyester, Silicones.

 

 

 

 

2.50

148

12

II. Using Plastic raw materials having calorific value of above 15000 btu/lb

Polyethylene, Polypropylene, Polystyrene, Poly-alpha-methylstyrene, Acrylonitrile-butadiene-styrene, Polybutylene

 

 

 

3.50

Note: Plastic Goods Manufacturing using plastic raw materials not listed above is rateable under rate code 09 or 12 as per the calorific value of the raw material used. For other plastic raw materials for which calorific values are not known reference is to be made to TAC.

Foamed Plastics manufacturing and/or converting plants will continue to be rated as per Risk Code 084 and Rate Code 15.

Insurers are requested to make a note of the change and advise the operating offices accordingly.

                                                                                                            Secretary

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FT/10/2003                                                                                     Date : 20.06.2003

Re : ‘File & Use’ System for Comprehensive  Insurance Package Policy for Mega Risks

 

This refers to TAC’s Circular letter No. Fire/369 dated 6th December, 1999 informing the insurers that all Mega Risks satisfying the following criteria would go out of the purview of the tariff :

Where the threshold limit of PML is

Rs. 1054 crores or above at any one location

or

The sum insured at any one location is

Rs.10000 crores or above.

 

It has been decided that insurers will have to file the product in respect of all such Mega Risks also with IRDA under the ‘File & Use’ system and be guided by IRDA’s advices.

Insurers should also submit to TAC, Head Office copies of the policies issued for Mega Risks alongwith the details of incurred claims.

                                                                                                        Secretary

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