Top 10 Reasons for Canceling a Fire Insurance Claim

Be aware of 10 notable reasons why a fire insurance claim can be canceled. You need to be aware of unexpected rejection of insurance claims. What are the reasons for fire insurance claim to be canceled are discussed-

Fire Insurance Claim

and other natural disastersdisasters such as floods, storms, cyclones, etc. can cause extensive damage to any human or property. Immediately such an accident causes a great deal of emotional trauma to the human mind. Recovering from such damage can be difficult and even dangerous. It may take several years to recover from the loss and rebuild the contents of the loss. And so you should take out insurance that can protect you from all possible damages.

Standard Fire Insurance Policy with Special Perils Cover. Such a special policy ensures the payment of compensation for your assets as well as the receipt of financial assistance.

When the insurance claim is presented, you will know and understand the true nature and character of the policy. So it is very important to know all the prohibitions on what to do to get an insurance claim and what to do if the insurance claim is rejected. In the language of insurance it is called Warranty, Terms & Conditions. It is the responsibility of the insurance company to pay for any financial loss due to an accident during the course of the policy. Similarly, it is the responsibility of the insured to properly maintain the insured assets or content. It is the moral responsibility of the insurance customer to take necessary steps to minimize losses.

Here are some common reasons why a claim by your insurer may be considered unacceptable or void:

Natural weather :

Gradually cracking due to natural weathering. Such as cracks in the walls or roof of the house due to the heat of the sun, erosion as a result of continuous flow of rain water.

Incomplete Pipeline Defective Pipeline (Gas, Electricity, Water, Sewerage) :

As a property owner, it is your responsibility to take proper care of your property. Similarly, an internal loss is not covered by the insurance claim due to faulty plumbing that an insurer is directly aware of.

Incomplete design structural weakness unmeasured elements rods cement sand bricks Range :

New buildings and structures can sometimes only give way to newly constructed structures or structural distribution (bricks, sand, cement, rods not being quantified in certain places) can cause cracks at the beginning of the building or installation life. This can also happen due to piling errors at the beginning of building construction. No such loss is covered by any standard fire policy and policy with additional risk.

Defective design or incompetent manufacturer :

Insurance claims will be rejected if the insured property is damaged due to defective design, unskilled craftsman, incomplete or poor construction materials.

Content :

Although the insured subject or assets are covered under the Standard Fire and Special Perils policy, the details and amount (in rupees) of the assets should be mentioned in the policy.

6 . Changes as a result of government directives :

If the property is changed, modified, amended or damaged by order of the government authority as a result of permanent or temporary disposal due to government decision, it is not subject to payment of insurance claim.

Sidhela theft house breaking theft :

Damage caused by direct theft during a fire accident is not covered by the fire insurance policy. Even during a fire, or after a fire or in the event of an accident, such damage is not covered by the fire insurance policy. However, with additional premium, cover for riots, floods, strikes, terrorism can be taken.

Recommended Insurance material or resources on their own insurance customer and insured interests do not lie :

If the insured and the insured have no interest in the subject matter or assets, the insurance policy will be automatically canceled.

With the above mentioned indicators, the issue of individual interest has been explained. In case of loss of assets, the customer suffers financial loss. At that moment, he sought compensation from the insurer. This is the insurable interest of the insurance customer. On the other hand, it is in the interest of the insurer to receive a premium in exchange for insuring the property. By saving the money, he plays a role in protecting the interests of his insurance company and the insurance customer.

9 . Electrical or mechanical disturbances :

Machinery may be automatically damaged by accident due to a general electrical fault or mechanical fault, but the source of such damage is not primarily from a fire – in which case the insurance claim will be canceled. Excessive pressure on a machine that is constantly running or used can cause property damage due to the machine’s own heating, electrical leakage or short circuit caused by an error, which is normal. And so the source of electric lines and lines, electric motors, power houses need to be monitored regularly.

10 . Preventive measures taken must not be : 

It is your moral responsibility to do your best to minimize the amount of damage when insured assets are involved in an accident. Of course, the necessary preventive measures must be taken. After presenting the insurance claim, the authorized surveyor will conduct a survey or observational investigation on the scene and the damaged property. The insurance claim will be canceled if it is proved that the cause of the loss has increased due to any negligence or you have not taken necessary steps to reduce the loss.

Fire Insurance Claim

In addition to the reasons listed above, your insurance claim may be rejected. Keep the following information in mind so that your insurance claim is paid on time.

  • Report the accident to your asset insurer quickly.
  • Renew the policy on time and pay the premium.
  • Inform the insurer immediately of any changes, transfers, modifications, modifications to your insured assets.
  • Carefully read all the terms and conditions written between your policy papers. Be fully aware of what risks are covered in your policy and what risks are not.
  • Take the necessary steps to minimize damage during an accident.
  • Update, attest all claim documents and keep a list of damages.
  • Provide accurate information of assets when taking insurance policy, present the actual value of the assets. Otherwise, if the difference in the value of the asset at the time of payment of the insurance claim or incorrect information is proved, the insurance claim will be paid on average.

When you take out an insurance policy, know in detail about the prohibitions and terms given in the policy. This will play a helpful role in decision making when you take out a policy for your assets.

Author: Recruitment Officer, United Insurance Company Limited, Head Office, Dhaka.

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