Final Report on Insurance Presentation

8/3/2019 Final Report on Insurance Presentation

http://slidepdf.com/reader/full/final-report-on-insurance-presentation 1/23

1

A Report

On

Fire insurance and it’s

Coverage and Benefits



2

A Report on Fire insurance

Coverage and Benefits

Course Name: Insurance and Risk Managment

Course code: 224

Submitted to:

Shahin Ahmed Chowdhury

Lecturer

Department of Marketing

University of Dhaka

Submitted by:

CATALAN

BBA, 16th batch, sec-B


University of Dhaka

Date of submission: November 2, 2011



3

Group Profile:

01. Tahsib Ahmed (Group Leader-08)

02. Md. Roman Al Mamon (60)

03. Shaikh Md. Rasel (82)

04. Shuvashish Dey (102)

05. Md. Mokaram Hossin (134)

06. Hasan Mahmud (142)

07. Md. Murshedul Alam (172)

08. Md. Asaduzzaman (162)

Shahin Ahmed Chowdhury



4

Lecturer


University of Dhaka

Dear Sir,

Subject: Submission of a report.

With due regards we state that we are very thankful to you as you assigned us this

report on “Fire Insurance ”. It is a great opportunity for us to acquire theoretical

and practical knowledge about Insurance and Risk management. We have tried our

best to gather what we believe to be the most complete information available.

Your kind acceptance and any type of appreciation would surely inspire us. We

would always be available and ready to explain further any of the contexts

whenever asked.

Sincerely yours,

Members of the Catalan

Acknowledgements



5

Any comprehensive work such as report making owe credit to multitude of people.

Certainly, we should acknowledge the contributions of the pioneers in the field of management, especially those whose teachings have become a part of our thinking.

First we commit ourselves grateful to almighty Allah who gives us power and

knowledge to complete the report. Then we acknowledge our honorable course

teacher Mr. Shahin Ahmed Chowdhury;who has opened the door of knowledge

in front of us. Through the whole semester he has broaden our outlook in

Insurance and related sector.

Next we acknowledge the Writer of the book who has helped a lot by writing a

core book on elementary psychology.

-George E. Rejda

Without the direct and indirect support of these dear people this report would notexist.

Contents:



7

In our report, we have discussed basically with different fire insurance companies

in Bangladesh. Fire insurance is a form of property insurance which protects people the costs incurred by fires. Fire insurance can be classified into two

categories- natural and physical hazard; moral hazard. They are almost 14 types of

fire insurance policy. They are : Valued Policy, Unvalued Policy, Specific Policy,

Average Policy, Floating Policy, Excess Policy, Declaration Policy, Adjustable

policy, Maximum Value with Discount Policy, Replacing Policy, Consequential

Loss Insurance, Blanket Policy,Insurance for Sprinkler Leakage Damage,

Comprehensive Policy. We tried to contrast between different companies and their

policies.

Introduction



8

Fire insurance is a form of property insurance which protects people the costs

incurred by fires. In the modern world the importance of fire insurance is

increasing day by day. Fire insurance not only protects people from unwanted loss

caused by fire but also keeps them tension free. It also helps people to practice

ethical behavior.

Origin:

As a marketing student it is necessary to know different insurance policiesavailable in our country. Our Insurance course teacher Mr. Shahin Ahmed

Chowdhury assigned us to organize a presentation program and prepare a full

report on “Fire insurance” on 1 November, 2011. Our teacher thought that it would

be very helpful for us to know the terms of Fire insurance very deeply. Group

presentation also would be helpful to know “Fire insurance”. Presentation also will

affect our efficiency in our future job which will make us a good executive and a

handsome entrepreneur.

Objectives



10

We prepared one third of our report from secondary sources. We collected all the

required information from different general insurance companies, journal and

related papers. All the members of our group worked hard in seminar for preparing

this report. We also followed our text book for collecting some necessary

information. The sheets provided by our course teacher also helped a lot for

preparing report.

Limitations

We face some specific problem while preparing this report. These problems

created some barriers to go ahead. Those specific problems are –

1. We didn’t get enough time to prepare this report, that’s why we prepared the

report in a hurry.

2. We also had some financial problems to prepare the report.

3. We didn’t get all the required materials for enhancing the report.

Chapter-01

Meaning of Fire Insurance



11

Fire insurance is a contract between two parties. The aim of thiscontract is to provide coverage to the policy holder against Firerisk of his property. For a certain amount of premium, Insurerassures the insured to cover the risk of the property damaged by

fire.

M.N.Mishra says about insurance:

• “Fire insurance is a device to compensate for the lossconsequent upon destruction by fire.”

Ghos and Agarwala said:

• “Fire insurance may be defined as a contract whereby one party undertakes in exchange for a premium toindemnify the other against a loss or damage caused tospecified property by fire during a particular period tothe extent of a definite sum.

Professor R.S. Sharma says: “A fire insurance contract may bedefined as an agreement whereby one party in return for aconsideration, undertakes to indemnify the other party against financial loss which the later may sustain by reason of certaindefined subject matter being damaged or destroyed by fire or other defined perils up-to an agreed amount.”

In Bangladesh Insurance Act 1938 clause 2(6b) it is stated that:

“ Fire insurance business means the business of effecting,otherwise than incidentally to some other class of insurancebusiness, contact of insurance against loss by or incidental tofire or other occurrence.”

Chapter-02



12

Significance of Fire Insurance:

There are some significances of fire insurance. These are given

below:

• Safe –guard of Personal Property

• Helps in Industrialization

• Establishment of Security and Relief

• Accumulation of Resources and Its Investment

• Creation of Awareness

• Helps in Distribution of Risk

• Helps in Creating Employment.

Chapter-03



13

Essential Elements/Features of Fire Insurance

1) Necessary Elements of general Contract:

• Minimum two parties

• Offer and Acceptance

• Legal Consideration

• Capacity to Contract

• Certainty

• Others

2) Contract of indemnity

3) Insurable interest

4) Fiduciary relationship

5) Damage for “Causa Proxima”

6) Proportionate Contribution

7) Subrogation

Chapter-04



14

Scope of Fire Insurance And its Safety Measures

AA Material Loss Insurance

AA Consequential Loss insurance

A) Material Loss Insurance

1. Standard Fire Policy:

I. Insured Risk or Policy cover

All damage invented from Fire

Loss caused by thunder

Loss from domestic used broiler

Damage caused by domestic explosion caused by fire

II. Exclusions or policy not cover

If the explosion is not caused by fire



15

Accept the covered property the loss of additional property caused by fire

It is not applicable for money, manuscript, design, books, stamp, pattern etc.

If a property is covered by both Marine and Fire insurance than Marineinsurance counts first.

2. Including Special Perils:

Applying Excessive heat

Earthquakes

Mutiny

War or attack by foreign enemies

3. Insurance for material damage by declaration policy

4. Insurance for material damage by blanket policy

5. Insurance for material damage by re-instatement policy

6. Insurance for material damage by house hold policy

7. Insurance for sprinkler leakage damage.

B) Consequential Loss Insurance:



16

1. For the time of losses the business deprived from the profit and

earning for not keep the firm in action

2. During the closed period the expenses paid

3. For continuing the business in a small scale during the loss.

Chapter-05



17

Classification of Fire Insurance or Fire insurance Policy

1. Valued Policy

2. Unvalued Policy

3. Specific Policy

4. Average Policy

5. Floating Policy

6. Excess Policy

7. Declaration Policy

8. Adjustable policy

9. Maximum Value with Discount Policy

10.Replacing Policy

11.Consequential Loss Insurance

12.Blanket Policy

13.Insurance for Sprinkler Leakage Damage

14.Comprehensive Policy

Classification of Fire Risk

1) Natural or Physical Hazard or Risk:



18

Fire phobic nature of the property

Defective Construction

Defective Heating System

Unsafe procedure of doing work

The nature of the business

Faulty Classification

Lack of Fire Extinguishing measures

2) Moral Hazard or Risk:

Setting Fire by enemies

Intentionally Fire setting

Intentional negligence of the policy holder

Chapter-06



19

Distinction between Marine Insurance and Fire Insurance:

Chapter-7

Subject Marine Insurance Fire Insurance

1.Contents Ship in voyage, the goods

carrying and frights are the

content of this contract

All types of property or assets are the

content of this policy

2. Objective To protect the ship and the

carried goods of the voyage

To protect the property losses caused by

fire.

3. Period of

Contract

It is usually 1 year termed or

for a certain voyage time

period

It is one year termed

4. Insurable

Interest

When occurring the damage

the insured has to have

insurable interest on the

property

During proposing the policy and occurring

the loss there has to be insurable interest.

5. Way of

compensation

Only monetary indemnity is

given

Here with monetary indemnity re placing

is also done

6.Assignment In this case without the

consideration of the policy

holder assignment can be done

Here the assignment is not done so easily

7.Alteration or

removal of asset

For alteration or replacing the

insured assets the permission

of the insurance company is

not needed

For any alteration of the assets the

permission has to be taken from the

insurance company

8. Moral hazard The moral hazard is

comparatively low here

The amount of moral hazard is very high

in this policy

9. Character

certificate

The character certificate for

proposing and receiving the policy in not required

Here the character certificate has to be

submitted to the insurance company



21

6. Replacement

7. Insures right after fire

8. Contribution and average

9. Subrogation

10. Arbitration

11. Electric clauses

12. Purchaser’s interest clause

13. Insured risk.

The above mentioned points are the phraseology of fire insurance.

Chapter-8



22

Conclusion

Fire insurance plays a significant role in our day to day life in case of

safety & protection of liability and property.by using this insurance

policy we can easily protect or reduce our possibility of fire risk which

helps us to go forward as well as increasing productivity. So it has to be

acknowledged that today without fire insurance none of us can be fully

satisfied about their home, industry and other valuable properties.

References



23

1. Mr. Ataur Rahman

Executive Vice President

Green Delta Insurance Co. Ltd

2. Mr. Arif Khan

Senior GM

Phoenix Insurance Co. Ltd

3. Md. Imran Rouf

Senior GM

Bangladesh General Insurance Co.

4. Nahida Rahman

Manager

Rupali Insurance Co. Ltd

Final Report on Insurance Presentation

Documents

Transcript of Final Report on Insurance Presentation