| Cir No | Date | Subject | Effective Date |
| FT/1/2003 | 17-3-2003 | Rating of standalone LPG Recovery Plant | 17-3-2003 |
| FT/2/2003 | 17-3-2003 | Coverage of goods held in trust or on commission -General Exclusions No. 5 under Section II -(A) of AIFT | 17-3-2003 |
| FT/3/2003 | 17-3-2003 | Pro-rata extension/cancellation of IAR Policy to coincide with financial year | 17-3-2003 |
| FT/4/2003 | 7-4-2003 | Rating of Electronic Software Parks | 7-4-2003 |
| FT/5/2003 | 7-4-2003 | Voluntary Deductible Scheme for Consequential Loss (Fire) Policies for risks other than Petrochemical risks. | 7-4-2003 |
| FT/6/2003 | 7-4-2003 | Industrial All Risks Policy - Amendment of Extension 3(g) under ‘Excluded Property’. | 7-4-2003 |
| FT/7/2003 | 16-4-2003 |
Consequential Loss (Fire) Tariff -Extension to cover Supplier’s premises |
16-4-2003 |
| FT/8/2003 | 11-6-2003 |
Inspection of Fire Losses by Engineers of TAC |
11-6-2003 |
| FT/9/2003 | 17-6-2003 |
Rating of Plastic Goods Manufacturing (excluding Foam Plastics) |
17-6-2003 |
| FT/10/2003 | 20-6-2003 | 'File & Use' System for Comprehensive Insurance Package Policy for Mega Risks |
FT/ 1 /2003 Date :17-3-2003
Re: Rating of standalone LPG Recovery Plant
Tariff Advisory Committee has amended the existing tariff entry "Liquified Gas Bottling Plant" with Risk Code 119 and Rate Code 15 under Section IV of the AIFT. The tariff entry is amended to read as under:
| Risk Code | Rate Code | Description of Risk | Rate (Rs. Per mille) |
| 119 | 15 | Liquified Gas Bottling/Recovery Plant | 4.50 |
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
______________________________________________________________
FT/ 2 /2003 Date : 17-3-2003
Re: Coverage of goods held in trust or on commission -General Exclusions No. 5 under Section II -(A) of AIFT
Tariff Advisory Committee has modified General Exclusion No.5, of Standard Fire and Special Perils Policy under Section II of the AIFT. The modified provision is as follows:
"Loss, destruction or damage to bullion or unset precious stones, any curios or works of art for an amount exceeding Rs.10,000/-, goods held in trust or on commission, manuscripts, plans, drawings, securities, obligations or documents of any kind, stamps, coins or paper money, cheques, books of accounts or other business books, computer system records, explosives unless otherwise expressly stated in the policy."
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
______________________________________________________________
FT/ 3 /2003 Date :17-3-2003
Re : Pro-rata extension/cancellation of IAR Policy to coincide with financial year
Arising out of query raised by one of the insurers, Tariff Advisory Committee has clarified that IAR Policy can be extended or cancelled on pro-rata basis in order to coincide with the financial year of the insured. The insured can however exercise this option only once.
Secretary
___________________________________________________________________________ :7-4-2003
Re: Rating of Electronic Software Parks
Tariff Advisory Committee has amended the tariff item "Electronic Software Parks" appearing under Section IV of All India Fire Tariff to read under :
|
Risk Code |
Rate Code |
Description of Risk |
Rate (Rs. per mille) |
|
073 |
04 |
Electronic Software Development Unit/s |
1.25 |
Insurers are requested to make a note of the above change and advise their operating offices accordingly.
Secretary
Re : Voluntary Deductible Scheme for Consequential Loss (Fire) Policies for risks other than Petrochemical risks.
Tariff Advisory Committee has decided to introduce Voluntary Deductible Scheme for Consequential Loss (Fire) policies for risks other than those rateable under Petrochemical Tariff. The scheme is as follows:
|
Table of discounts for Voluntary Deductible |
|
|
Deductible |
Discount (%) |
|
i) 7 days Gross Profit subject to minimum of Rs.10 lakhs |
2.5 |
|
ii) 14 days Gross Profit subject to minimum of Rs.20 lakhs |
5 |
|
iii) 21days Gross Profit subject to minimum of Rs.30 lakhs |
7.5 |
|
iv) 28 days Gross Profit subject to minimum of Rs.35 lakhs |
10 |
|
v) 35 days Gross Profit subject to minimum of Rs.40 lakhs |
15 |
|
vi) 60 days Gross Profit subject to minimum of Rs.45 lakhs |
25 |
N.B. 1 : The discount shall not exceed 25% even if the insured selects a deductible higher than that given under sub item (vi) above.
N.B. 2 : Voluntary Deductible once opted shall apply to the entire property insured and no selection shall be allowed.
Insurers are requested to make a note of the change and advise their operating offices accordingly
Secretary
Re: Industrial All Risks Policy - Amendment of
Extension 3(g) under ‘Excluded Property’.Tariff Advisory Committee has amended the wording of exclusion 3(g) under "Excluded Property" of IAR policy by deleting the words "repairs, alterations and servicing" from the said exclusion The amended wording of exclusion 3(g) reads as follows:
"property undergoing testing installation including materials and supplies therefore if directly attributable to the operations of work being performed thereon unless damage by a cause not otherwise excluded ensues and then the insurer will be liable only for such ensuing loss."
Insurers are requested to make a note of the change and advise their operating offices accordingly.
Secretary
Re : Consequential Loss (Fire) Tariff -Extension to cover Supplier’s premises
Following TAC’s decision to rate non-petrochemical plants under petrochemical tariff, Note nos. 4,5 & 6 appearing below N.B. 2 of Rating Schedule for "Extension to cover Supplier’s premises" of Consequential Loss (Fire) Tariff have become redundant . TAC has therefore deleted Note nos. 4, 5 & 6 from C.L. (Fire) Tariff.
Insurers are requested to take a note of the above change and advise their operating offices accordingly.
Secretary
Re : Inspection of Fire Losses by Engineers of TAC
As Insurers are aware, the TAC has a system of inspecting fire losses exceeding Rs.1 crore. The main aims of the inspections are :-
1. Building-up data base on large losses for use by TAC
2. Ensuring compliance with Tariff provisions
3. Examining efficacy of TAC’s regulations on fire protection systems, rules for electrical installations etc.
Chairman,
IRDA/TAC approved streamlining the procedure for large loss inspections by TAC
as under :-
Insurers or their operating offices must intimate such losses so as to to reach the nearest office of TAC within 48 hours of the occurrence of the loss. A copy of the intimation must be sent to Head Office of TAC.
2. The concerned office of TAC will initiate steps to inspect the loss within 48 hours of the receipt of such intimation.
No report or any other advices will be issued by TAC where the loss has not been actually inspected.
The report of TAC Engineer will be confined to the physical description of the loss, possible cause/s of the loss, measures for risk improvement, compliance with tariff rates/provisions and comments on efficacy of TAC’s regulations on fire protection systems, rules for electrical installations etc. The report will not comment on survey or investigation aspects of the loss.
Insures are advised to inform their operating offices suitably.
SECRETARY
Re : Rating of Plastic Goods Manufacturing (excluding Foam Plastics)
Arising out of representations from insurers, Tariff Advisory Committee has amended the existing tariff entry "Plastic Goods Manufacturing (excluding Foam Plastics)" with Risk Code 148, and Rate Code 12 under Section IV of the AIFT with immediate effect. The amended tariff entry reads as under :
Plastic Goods manufacturing (excluding Foam Plastics)
|
Risk Code |
Rate Code |
Description of Risks |
Rate Rs. (per mille) |
|
148 |
09
|
I. Using Plastic raw materials having calorific value upto 15000 btu/lb Polytetrafluoroethylene,Polychlorotrifluroehtylene, Polyvinyl chloride, polyvinylidene chlororide, Polyvinylidene fluoride, Chlorinated polyether, Polycarbonate, Polymethyl methacrylate, Phenol-formaldehyde, Urea-formaldehyde, Melamine-formaldehyde , Polyurethane, Polyester, Silicones. |
2.50 |
|
148 |
12 |
II. Using Plastic raw materials having calorific value of above 15000 btu/lb Polyethylene, Polypropylene, Polystyrene, Poly-alpha-methylstyrene, Acrylonitrile-butadiene-styrene, Polybutylene |
3.50 |
|
Note: Plastic Goods Manufacturing using plastic raw materials not listed above is rateable under rate code 09 or 12 as per the calorific value of the raw material used. For other plastic raw materials for which calorific values are not known reference is to be made to TAC. Foamed Plastics manufacturing and/or converting plants will continue to be rated as per Risk Code 084 and Rate Code 15. |
|||
Insurers are requested to make a note of the change and advise the operating offices accordingly.
Secretary
Re : ‘File & Use’ System for Comprehensive
Insurance Package Policy for Mega Risks
This refers to TAC’s Circular letter No. Fire/369 dated 6th December, 1999 informing the insurers that all Mega Risks satisfying the following criteria would go out of the purview of the tariff :
Where the threshold limit of PML is
Rs. 1054 crores or above at any one location
or
The sum insured at any one location is
Rs.10000 crores or above.
It has been decided that insurers will have to file the product in respect of all such Mega Risks also with IRDA under the ‘File & Use’ system and be guided by IRDA’s advices.
Insurers should also submit to TAC, Head Office copies of the policies issued for Mega Risks alongwith the details of incurred claims.
Secretary