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Frequently Asked Questions

What is Fire Insurance?

Fire insurance is a form of protection against any unfortunate destruction or damage to property due to fire. Cover under the fire insurance policy can be extended to include other additional perils as detailed below at an additional cost.

• Riot and Strike
• Malicious Damage
• Explosion
• Cyclone, Storm and Tempest
• Flood
• Impact Damage
• Bursting & Overflowing of Water Tanks
• Electrical Extra
• Earthquake
• Aircraft Damage

What can be covered under a fire policy?

• Under a fire policy any business premises, private dwelling or any other tangible property can be covered.
• Items covered could be, for example: buildings, furniture, electronic or electrical items, stocks etc.
• Further if the Insured wishes to cover him/her against any loss of rent or removal of debris after the occurrence of a loss or damage separate amounts in respect of these additional covers should be declared.

What does “sum insured” mean?

The value represents the actual cost, which would be incurred to replace/rebuild the insured property at the time of loss or damage to that property.

What are the requirements to purchase a fire insurance policy?

The proposer of the policy should first and foremost have a financial interest in the assets being proposed for insurance, ie. he/she should stand to lose financially in the event of loss or damage to such assets.

Secondly, the proposer should submit a proposal form (which can be obtained by any of Gulf Union Representatives/Offices). The proposal form should disclose all details, which are true to the insured’s best knowledge and other information, which the proposer may feel is relevant.

Any other details should be produced at the insurer’s request, wherever necessary.

What will be the cost of a fire insurance policy?

The cost of a fire insurance policy will depend on the
• Perils to be covered
• The value of the items covered
• The usage of the premises proposed for insurance
• The location details of the premises proposed for insurance etc

Hence it is advisable to obtain a quotation

In the event of loss or damage what should be the procedure to be followed?
If loss or damage occurs, it is the responsibility of the insured to act with reasonable care to minimize the loss wherever possible. In short, the insured should do everything in his capacity to minimize the loss as much as possible as in a situation where he/she would have acted if there were no insurance cover.

Secondly the Civil Defense should be informed and a report should be obtained from them. The insurance company should also be informed as soon as possible regarding any loss that has occurred.

Please contact Gulf Union Cooperative Insurance Company for further details.

These questions and answers are designed to help clarify some of the concepts, but are not considered a legal reference to any dispute, as the first reference will be the insurance policy and its terms.