The fire & Perils Policy covers material damage loss only. A consequential loss policy however covers loss of revenue when such investment is rendered temporarily unproductive owing to damage by an insured peril.
Fire consequential loss must be taken up together with a Fire (material damage) policy.
Every consequential loss policy must contain a PROVISION that at the time of the happening of the damage there shall be in force an insurance covering the interest of the premises against such damage and that the payment shall have been made or liability admitted thereof under such insurance.
The insured must prove insurable interest in the property for the consequential loss to be placed.
WHAT IS THE BASIC COVER?:-
Loss of Gross Profit following reduction in turnover
Increased Cost of Working (additional expenses incurred to prevent further reduction in turnover
Wages and Salaries on Payroll Basis
This is the period beginning with the occurrence of the damage and ending not later than maximum (24 months) thereafter during which the results of the business shall be affected in consequence of the damage. It is not permissible to alter the Indemnity Period during the currency of the policy.
ADDITIONAL EXTENSION COVERS
The Consequential Loss Cover may also be extended to cover Add-On Perils insured by Fire Material Damage Policy at additional premium which must be shown separately on the policy.
WHAT SHOULD NOT BE COVERED
Depreciation of Stock
Duly completed proposal form
insured's ID and PIN
Business survey where necessary
Proof of a Fire Material Damage for the said property in place
Report incident/loss within 21 days of Fire Material Damage Claim happening
Provide all necessary claim documents (police abstract, claim form, books of records of stock and receipts for purchases of these stock in trade