SEMINAR ON FIRE SAFETYMITIGATING FIRE HAZARDS FACETS OF

SEMINAR ON FIRE SAFETY–MITIGATING FIRE HAZARDS FACETS OF FIRE INSURANCE AS A COLLATURAL SECURITY FOR PROPERTIES AND ELIGIBILITY CRITERIA OF COMPLIANCE FOR AVAILING F. E. A. DISCOUNTS IN GENERAL INSURANCE INDUSTRY. ANABIL BHATTACHARYA, B. M. E. (Hons. ), F. I. I. I. , CHIEF MANAGER, H. O. , N. I. C. L. , KOLKATA 14 TH MAY, 2015 THURSDAY

INSURED’S RESPONSIBILITY AS GENERAL INSURANCE POLICYHOLDER Principle of insurance says that – even if a Fire Insurance Policy is taken by any person covering his / her premises / properties, subsequently in case of any fire incident, he/she must behave as if he / she is uninsured. So all necessary precautions is always expected that he/she must be aware about all the issues relating to inception, contributory, special, natural & moral hazards of Fire incidents to occur. ANABIL BHATTACHARYA

What is Fire Risk? ANABIL BHATTACHARYA

FIRE RISK – HAZARD LINK IN INSURANCE FIRE PERIL ASSET LOSS / LIABILITY HAZARD FINANCIAL LOSS ANABIL BHATTACHARYA

INCEPTION HAZARDS Those give rise of fire incident are listed below: ELECTRICITY FIRE SMOKING FIRE FRICTION FIRE OVERHEATING FIRE / EXPLOSION HOT SURFACES FIRE WELDING FIRE SPARKS (ELECTRICAL / MECHANICAL) FIRE CHEMICAL ACTION FIRE / EXPLOSION STATIC ELECTRICITY FIRE LIGHTNING FIRE / COLLAPSE BURNER FLAMES (BOILER / OVEN / DRIER) FIRE ANABIL BHATTACHARYA

CONTRIBUTORY HAZARDS Those increase the spread & volume of fire. • POOR CONSTRUCTION OF BUILDINGS ( INFERIOR MATERIAL / WOOD / TIMBER / PLASTIC SKY LIGHTS / GLASS FACADES) • FALSE CEILING / INTERNAL PARTITIONS/ WOODEN LINING • LOCATED IN A DIFFICULT TERRAIN / CROWDED PLACE • HIGH DENSITY FIRE LOAD (SOLVENTS / CHEMICALS) • DUCTS FOR AIR CONDITONING, DUST, VAPOUR • BAD HOUSE KEEPING, DRY GRASS, CONGESTED

CONTRIBUTORY HAZARDS Those increase the spread & volume of fire. �UNATTENDED AREAS �ABSENSE OF SAFETY DEVICES, FIRE FIGHTING EQUIPMENTS �NO FENCING, NO SECURITY ARRANGEMENTS �NO LIGHTING �NO PROPER WASTE DISPOSAL METHODS �NO WORK PERMIT SYSTEMS �RIOT / STRIKE / VANDALISM ANABIL BHATTACHARYA

SPECIAL HAZARDS Those are potential to fire incidents & makes fire fighting process difficult. l. BULK STORAGES (COAL IN OPEN, SOLVENT TANKS, LPG TANKS) l. COMPLEX CHEMICAL PROCESS ( REFINERY / FERTILISER / SOLVENT EXTRACTION) l. SPRAY PAINTING OPERATIONS l. PULVERIZING OPERATIONS l. MATERIAL SUCEPTIBLE TO SPONTANEOUS COMBUSTIONS l. POLLUTION AND CONTAMINATION RISKS ANABIL BHATTACHARYA

NATURAL HAZARDS Those are always present as natural calamity making us helpless. l. FLOOD , STORM, CYCLONE, HURRICANE l. INUNDATION l. EARTHQUAKE, VOLCANIC ERUPTIONS l. SNOW / FROST / ICE STORMS l. LANDSLIDES / ROCK SLIDES l. SUBSIDENCE l. FOREST FIRE / BUSH FIRE ANABIL BHATTACHARYA

MORAL HAZARD MINIMIZATION Since the moral hazard cannot ruled out in Fire insurance parlance the insurers only try to mitigate the same through following procedures: • LOSS EXPERIENCE RATING • PARTIAL RISK SHARING • CREDITS FOR LOSS CONTROL • CLAIMS INVESTIGATION • CRIMINAL PROSECUTION ANABIL BHATTACHARYA

ELIGIBILITY CRITERIA OF FIRE EXTINGUISHING APPLIANCES DISCOUNTS : Types Type of installation - Arrangement to be Discount made (allowed in %) on Fire Insunce Premium Rate a) Hand Appliances (as per thumb rule) & Trailer Pumps/ Fire Engines (as reqd. as per layout). Hand Appliances & Hydrant System. 2. 5 c) Hand Appliances & independent Sprinkler / Fixed Water Spray System. 7. 5 d) Hand Appliances + Hydrant System & independent Sprinkler / Fixed Water Spray System 10 b) 5 ANABIL BHATTACHARYA

CURRENT CONSTRAINTS IN THE DE-TARIFF REGIMNE OF INSURANCE: During the de-tariff regime that started w. e. f. 1 ST January, 2007, Fire Insurance premium is now highly discounted at the back-drop of stiff market competition, thereby, further reducing the applicable discount on account of Fire Extinguishing Appliances – so it may be harped on that the insured may not be interested to install Fire Extinguishing Appliances to get discount but for the normal safety consciousness the installation of these extinguishers are highly required. ANABIL BHATTACHARYA

ANABIL BHATTACHARYA