Underwriting of burglary insurance includes the following steps:

1. Nature of Insured property:

The value of the property and the weight and/or volume of the property are two aspects of risk considerations. Small volume/weight having high values are attached more risks of burglary.

2. Premises in which the insured property is housed:

ADVERTISEMENTS:

The class of construction of the premises situation of the premises etc. are considered for risk evaluation premises situated in densely populated areas are less risk prone than those situated in lonely areas.

3. Occupancies:

It is noted how many hours the premises are occupied. The hours for which the premises are unoccupied are noted.

4. Safety Measures:

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Safety measures if adequately taken will give less risk.

5. History:

History of post claim and insurance policies are considered for risk evaluation.

6. Moral Hazard:

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Underwriters take into consideration moral hazard of the proposer. Survey of heavy sum assured and special attributes thereof are taken into consideration.

7. Books of Accounts:

Books of accounts enable underwriter to assets correctly amount of liability. Information relating to stock taking and air dib is useful for the purpose.

8. Identification:

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Correct descriptions of goods are given for proper identification.

9. Conditions:

Whether sum insured have been given separately against the insured’s own stock, similar goods held in trust or on commission, furniture etc., cash or valuables in safe.

Survey Report:

ADVERTISEMENTS:

Acceptance and the terms of cover of are based on the report given by the surveyors for the following particulars:

(i) Proposer’s name, address and business

(ii) Exact description of the property proposed for insurance

(iii) Highest value of a single article

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(iv) Whether the stock books are properly maintained and whether the exact amount of loss can be ascertained

(v) Maximum possible loss

(vi) Whether the proposer resides on the premises

(vii) Hours and time the premises are left unoccupied

(viii) History of burglary in the locality and steps taken to present them

(ix) Number of doors, windows, skylights and other openings

(x) Whether there is special precautions like alarms, collapsible gates, warning clock etc.

(xi) Points of entry, exit, guards etc.

Rating:

Rating is done as per standard percent of the sum assured. The rate varies according to type of goods location and construction of premises, security measures such as close circuit T.V., armed guard, locked Bars, electronic alarms.

Claim Procedures:

Immediate notice is given to the insurer about the circumstance of loss, happening or event giving rise or likely to give rise to a claim under the policy.

Within 7 days of the notice, the insured has to lodge with the insurer a detail statement in writing of the loss or damage with an estimate of the intrinsic value of each article lost and the amount of damage sustained.

Prevention and Minimisation of Loss :

The insured is required to exercise reasonable steps to safeguard the property insured and to secure all doors windows and upper openings.

The insured has to give immediate notice to the police. He will take all reasonable steps to apprehend the guilty and to recover property lost.

If insurer requires the insured has to take steps for the prosecution and conviction of the guilty persons to recover the property. The expenses will be borne by the insurer.

Indemnification of Loss :

The insurer may reinstate replace; repair the property or premises, as the case may be instead of paying the amount of the loss or damage. The doctrine of subrogation applies after payment is made.

The insurer will pay only pro rata of the loss or damage. Where the property insured at the time of loss or damage shall be greater value than the sum insured thereon.