Fire & Allied Perils

The Policy covers all properties on land (excluding cost of land), moveable or immoveable, at various locations against fire and named perils.

Period of Coverage

The Fire Policy is an annual policy, generally, renewable each year. The Fire Policy can be cancelled at any time during the period of coverage with a suitable refund of premiums for any unexpired period.

Who Can Take Out the Policy?

Any person, firm, organisation, or institution who may suffer financial loss as a result of fire and allied perils. They may be broadly categorised as:

• Owners of buildings and contents such as household articles, furniture, etc.
• Shopkeepers
• Educational/Research Institutions
• Hotels, Boarding and Lodgings, Hospitals, Clinics, or such service providers
• Industrial and Manufacturing Firms
• Godown Keepers
• Bailees, Lessors, Lessees, Banks, Financial Institutions, Mortgagors, Mortgagees
• Traders in stocks
• Trustees, Charitable Institutions
• Transporters and C & F Agents

Types of Properties Covered

All moveable/immovable properties of the proposer on land (excluding those in transit) broadly categorised as follows:

1. Building (including plinth and foundations, if required):

   • Whether completed or in the course of construction (excluding the value of land)
   • Interiors, Partitions, and Electricals

2. Plant & Machinery, Equipment & Accessories (including foundations, if required):

   • Bought second-hand
   • Bought new
   • Obsolete machinery

3. Stocks:

   • Raw Material
   • Finished Goods
   • In process
   • In trade belonging to Wholesaler, Manufacturer, and Retailer

4. Other Contents such as:

   • Furniture, Fixtures, and Fittings
   • Cables, Pipings
   • Spares, Tools, and Stores
   • Household goods, etc.

5. Specific Items such as:

   • Bullion, unset precious stones, curios, works of art, manuscripts, plans, drawings, securities, obligations or documents, stamps, coins, or paper money, cheques, books of accounts, computer system records.

Perils Covered

• Fire
• Lightning
• Explosion/Implosion
• Aircraft damage
• Riot, Strike, Malicious damage (RSMD Perils)
• Storm, Tempest, Flood, Inundation, Hurricane, Cyclone, Typhoon, and Tornado
• Impact by any Rail/Road vehicle or animal
• Subsidence/Landslide including rockslide
• Bursting and/or overflowing of water tanks, apparatus
• Leakage from Automatic Sprinkler Installation
• Pollution or contamination resulting from any of the above perils
• Any insured peril resulting from pollution and contamination
• Bushfire

Expenses Covered

The policy automatically covers the following expenses incurred following loss, damage, or destruction of a covered property as a result of insured fire and allied perils.

Exclusions:

Losses/Expenses not covered include:

• 5% of each and every claim subject to a minimum of Ugshs 100,000 resulting from fire and allied perils.
• 2.5% of the sum insured for claims resulting from earthquakes.
• Expenses incurred on Architects, Surveyors’ Consultant Engineers fees, and Debris Removal.
• Loss of earnings, loss by delay, loss of market, or other consequential or indirect loss or damage of any kind.
• Loss of or damage to property occasioned by its own fermentation, natural heating, or spontaneous combustion or its undergoing any heating or drying process.

Perils not covered include:

• War and allied perils
• Ionising radiations and contamination by radioactivity
• Pollution or Contamination

Properties not covered include:

• Items like manuscripts, etc., unless specifically declared.
• Cold storage stocks due to change of temperature.
• Loss, damage, or destruction of any electrical and/or electronic machine, apparatus, fixture, or fitting arising from overrunning, excessive pressure, short-circuiting, arcing, self-heating, or leakage of electricity from whatever cause, including lightning.
• Loss, damage, or destruction of Boilers, Economisers, or other Vessels in which steam is generated machinery or apparatus subject to centrifugal force, by its own explosion/implosion.

Location of Risk

• The proposer shall describe all locations where the properties are built, installed, stored, or kept at the inception.
• Any change of location of risk shall be covered on intimation of such change.
• Change of ownership in the insured property shall be intimated so that the new owner may be covered by means of a suitable endorsement.
• Any material change in the location of risk, trade, or manufacturing activities shall be intimated to the insurer so that the changes are endorsed to offer continuous cover.