Query on IAR Policy

[ASAR]

Dear Friends,   We need the following information and opinion on the Industrial all risks policy and SFSP clause attached with RIV clause.   1.  Whether the loss is payable as on the date of loss or as on the date of reinstatement? 2.   If the reinstatement is not done, what about the assessment of loss? 3.   If the reinstatement is not done, what about the assessment of loss? 4.  Wether the value of the property must equal to the date of loss or date of reinstatement?   Please elaborate in detail.  If possible please mark the wordings of the policy for your comments   ASAR

[ASAR]

Dear Sir,                Thanks for your opinion.  As I posted the questions on hurry, some it was posted with some mistakes without my knowledge.  I revise the questions as follows

1.   Whether the loss is payable as on the date of loss or as on the date of reinstatement?

2.   If the reinstatement is not done, what about the assessment of loss (Payable on RIV or with         Depreciation? 4.   Wether the value of the property must equal to the sum insured on the date of loss or date of       Reinstatement or date of inception of the policy?   ASAR   -------Original Message-------   From: javed malik Date: 11/10/2010 9:59:56 PM To: insurance...@googlegroups.com Subject: Re: [Adjusters:10728] Query on IAR Policy Dear brother 1. The loss is payable as on the date of reinstatement. 2. Surveyor can make assessment of loss without waiting for completion of reinstatement work. 3. The value of property must be equal to the value as on the date of reinstatement. Thanks! Qayyum Malik (Pakistan)

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[Natarajan P]

Hi

 

Please find my answers

 

1.   Whether the loss is payable as on the date of loss or as on the date of reinstatement?

 

Ans : As on date of Loss

 

2.   If the reinstatement is not done, what about the assessment of loss (Payable on RIV or with  

      Depreciation?

Ans : Market Value

 

4.   Wether the value of the property must equal to the sum insured on the date of loss or date of

      Reinstatement or date of inception of the policy?

Ans : Reinstatement of property value should be equal to sum insured on date of Loss, otherwise Average clause applicable ( only for Partial loss).

Maximum SI (OR) actual reinstatement value is payable for Total loss.

 

An additional info: DAY ONE AVERAGE  clause - I think, this is not in practice in India. The reinstatement value on policy inception date should be considered for Average clause. 

[Natarajan P]

Dear All

 

Please find attachement for discussion

On Thu, Nov 11, 2010 at 11:47 AM, Natarajan P <natara...@gmail.com> wrote:

Dear Mr.Raj

 

It can be verified in GOOGLE search as "day one average clause". A document is attached for your info.

 

Regards

 

P.Natarajan

On Thu, Nov 11, 2010 at 11:36 AM, ASAR <asant...@gmail.com> wrote:

Thanks Mr.Natarajan.  Can you please send the day one average clause practice d in other countries.  I think it must be like Special Condition 01 of IAR policy.  Can you Please send your comment on the condition of average clause marking the wordings in the policy.   ASAR         -------Original Message-------

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[Natarajan P]

Dear All

 

Please find attached IAR wordings for an anlysis on the subject matter.....

On Thu, Nov 11, 2010 at 12:04 PM, shailesh shah <shaile...@gmail.com> wrote:

1.      If at the time of replacement or reinstatement the sum representing
the cost which would have been incurred in replacement or
reinstatement if the whole of the property covered had been destroyed,
exceeds the Sum Insured thereon or at the commencement of any
destruction or damage to such property by any of the perils insured
against by the policy, then the insured shall be considered as being
his own insurer for the excess and shall bear a rateable proportion of
the loss accordingly. Each item of the policy (if more than one) to
which this memorandum applies shall be separately subject to the
foregoing provision.

On 11/11/10, Natarajan P <natara...@gmail.com> wrote:
>   Hi
>
> *Please find my answers*

>
> 1.   Whether the loss is payable as on the date of loss or as on the date of
> reinstatement?
>

> *Ans : As on date of Loss*

>
>  2.   If the reinstatement is not done, what about the assessment of loss
> (Payable on RIV or with
>       Depreciation?

> *Ans : Market Value *

>
> 4.   Wether the value of the property must equal to the sum insured on the
> date of loss or date of
>       Reinstatement or date of inception of the policy?

> *Ans : Reinstatement of property value should be equal to sum insured on

> date of Loss, otherwise Average clause applicable ( only for Partial loss).

> *
> *Maximum SI (OR) actual reinstatement value is payable for Total loss.*
>
> *An additional info: DAY ONE AVERAGE  clause - I think, this is not in

> practice in India. The reinstatement value on policy inception date should

> be considered for Average clause.*

>
>
> On Thu, Nov 11, 2010 at 11:09 AM, ASAR <asant...@gmail.com> wrote:
>
>>     Dear Sir,
>>
>>              Thanks for your opinion.  As I posted the questions on hurry,
>> some it was posted with some mistakes without my knowledge.  I revise the
>> questions as follows
>>
>>
>>   1.   Whether the loss is payable as on the date of loss or as on the
>> date of reinstatement?
>>  2.   If the reinstatement is not done, what about the assessment of loss
>> (Payable on RIV or with
>>       Depreciation?
>> 4.   Wether the value of the property must equal to the sum insured on the
>> date of loss or date of
>>       Reinstatement or date of inception of the policy?
>>
>> ASAR
>>

>>  *-------Original Message-------*
>>

>>  *From:* javed malik <jqm...@gmail.com>
>> *Date:* 11/10/2010 9:59:56 PM

>> *To:* insurance...@googlegroups.com
>> *Subject:* Re: [Adjusters:10728] Query on IAR Policy

>> Dear brother
>>
>>
>> 1. The loss is payable as on the date of reinstatement.
>> 2. Surveyor can make assessment of loss without waiting for completion of
>> reinstatement work.
>> 3. The value of property must be equal to the value as on the date of
>> reinstatement.
>>
>> Thanks!
>>
>> Qayyum Malik (Pakistan)
>>
>>
>> On Tue, Nov 9, 2010 at 4:49 PM, ASAR <asant...@gmail.com> wrote:
>>     Dear Friends,
>>
>> We need the following information and opinion on the Industrial all risks
>> policy and SFSP clause attached with RIV clause.
>>
>> 1.  Whether the loss is payable as on the date of loss or as on the date
>> of reinstatement?
>> 2.   If the reinstatement is not done, what about the assessment of loss?
>> 3.   If the reinstatement is not done, what about the assessment of loss?
>> 4.  Wether the value of the property must equal to the date of loss or
>> date
>> of reinstatement?
>>
>> Please elaborate in detail.  If possible please mark the wordings of the
>> policy for your comments
>>
>> ASAR
>>
>>
>>   [image: FREE Animations for your email - by IncrediMail! Click

>> Here!]<http://www.incredimail.com/?id=606430&rui=123479111&sd=20101109>

>>
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>
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> You received this message because you are subscribed to the Google Groups
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>
>

--
Shailesh B. Shah
Insurance Surveyor / Loss Assessor
ISO 9001:2000 LEAD AUDITOR
Vadodara Cell- 9824021192

[Natarajan P]

Dear Mr.Antony Raj

 

The condition of average in IAR itself within the purview of Special Condition 1 for Section 1.

 

ie., Average clause for Section 1 in IAR should be studied as "Day one Average Clause"

 

At the time of loss,  we need to consider the reinstatement value of Policy inception date which should be compared with sum insured (that too 85% only )  for average clause imposition. Upon partial loss, no average should be imposed, eventhough the reinstatement value on date of loss is larger than reinstatement value ( equal to Sum insured ) on policy inception. 

 

This is my view. Looking for other expert opinion.

 

Regards

 

P.Natarajan

 

 

On Thu, Nov 11, 2010 at 6:18 PM, ASAR <asant...@gmail.com> wrote:

Dear Mr.Natarajan and members of the forum,   Can you please explain the implications of Special Condition No. 01 on the claim and compare the Day one Average clause practiced on foreign countries which we discussed in the morning over phone.   Also, Please explain whether the condition of average and penalty for Special Condition 01 are to be applied.  If yes which has to be applied first.   The learned friends may throw some light on the issues.   I will write on the subject in detail after the fire Seminar at Coimbatore.   I wish to use this opportunity to invite all of you to the Seminar.   ASAR         -------Original Message-------

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[Surinder Mohan Verma]

Dear Sir,
 
1.      The Loss is assessed on the date of loss and not on the date of assessment/reinstatement.
 
2.      In case the reistatement is not carried out, the depreciation is calculated by the Surveyr and  deducted by the
         Insurers.
 
4.      The reinstatement value is considred on the date of loss and accordingly Average Clause is applicable in case
         the Sum Insures is less than Reinstatement Cost.
 
Surrinder Mohan Verma
Abohar [Punjab]
094170 79248.

 

---

Date: Thu, 11 Nov 2010 11:09:58 +0530
From: asant...@gmail.com
To: insurance...@googlegroups.com; iiisl...@googlegroups.com; insurance...@googlegroups.com; ila-m...@googlegroups.com
Subject: {Surveyors:6225} Query on IAR Policy

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[mohan israni]

Dear Mr.S.M Verma,

Refering to your point No.1, I wish to clarify, that in the normal course, the valuation is based on the date of loss, but logically, if the time gap between the date of loss and the procurement of material and then reinstatement of damages thereof is wide, by which the price escalation in the material and the labour could have taken place, the valuation should be based accordingly. Best wishes                          Mohan Israni 

---

From: Surinder Mohan Verma <verma_...@hotmail.com>
To: SURVEYORS INSURANCE <insurance...@googlegroups.com>
Sent: Fri, 12 November, 2010 2:57:49 PM
Subject: RE: {Surveyors:6249} Query on IAR Policy

[Denesh Saxena]

Dear Asar,

 

Further to my previous mail I would like to inform that in case the loss is not instated with in one year from the date of loss, the adjustment of loss has to be carried out as per standard fire policy.

 

And in case the insured refuses in writing for the reinstating the loss even earlier than one year from the loss date, the adjustment of loss has to be done as per standard fire policy.

 

Regards

 

D.K. SAXENA

[Denesh Saxena]

Dear Sri Verma,

 

I also agree with Sri Israni.

 

As the matter of fact the adequacy of sum insured is required to be checked at the time of actual repairing & precuring of replacements.

 

Regards

 

D.K. SAXENA

(HALDWANI)

Mob. no. +91 9837048029 

On Sun, Nov 14, 2010 at 1:16 PM, mohan israni <misr...@yahoo.co.in> wrote:

[Surinder Mohan Verma]

Dear Sir,
 
The date of Loss is fixed for the valuation/reinstament because any increase/decrease affect the Insurers/Insured. In order to avoid dispute and litigation, the date of loss is considered the best date for assessment of loss which is acceptable o the Insurers as well as the Insured.
 
Surrinder Mohan Verma
Abohar
094170 79248.   
 

---

Date: Sun, 14 Nov 2010 22:08:34 +0530
Subject: Re: {Surveyors:6275} Query on IAR Policy
From: dk.crea...@gmail.com
To: insurance...@googlegroups.com

[Surinder Mohan Verma]

Dear Mohan Israni,
 
With your due apology, I wish to clear that the loss is assessed on the basis of ideminity i.e. as and where basis. So for as the flactuation in the market is concerned it may increase and it may fall. So, the date of loss is considred for assessment of loss.

 
Surrinder Mohan Verma
 Abohar 094170 79248 
 

---

Date: Sun, 14 Nov 2010 13:16:55 +0530
From: misr...@yahoo.co.in
Subject: Re: {Surveyors:6272} Query on IAR Policy
To: insurance...@googlegroups.com

[mohan israni]

Dear Mr.S.M.Verma,

If your logic says that date of loss under any circumstances is to be taken as a basis of valuation, please continue with the same. Best wishes                                   Mohan Israni  

---

From: Surinder Mohan Verma <verma_...@hotmail.com>
To: SURVEYORS INSURANCE <insurance...@googlegroups.com>

Sent: Sun, 14 November, 2010 7:13:25 PM
Subject: RE: {Surveyors:6285} Query on IAR Policy