Dear Sir/ Madam,
As a part of our duty of updating you on General insurance matters, we bring to your notice that, with effect from 1st March 2019 , GIC has initiated some major changes with regard to the underwriting of risks as under for New business as well as renewal in Fire Portfolio.
Kindly , note the changes as follows :
1) Deductibles for Thermal power plants and Steel plants having sum insured above 500 cr has been increased from the prevailing ones .
| Particulars | Old Excess | Revised excess w.e.f. 1st March 2019 |
| FLOP | 7 days of Gross Profit | 30 days of Gross Profit |
| MLOP | 14 days of Gross Profit | 45 days of Gross Profit |
| MD | 5% of the claim amount, subject to minimum Rs 10 Lakhs | 5% of the claim amount, subject to minimum Rs 1.25 cr |
2) GIC has listed 8 risks whose fire rates (excluding earthquake and STFI rate ) has increased. The list of risks is as follows :
- Textiles
- Plastics
- Rubber goods manufacturing
- Chemical Manufacturing below 32 degree C flashpoint
- Storage of category III goods
- Transporters godown
- Steel Plants
- Power Plants
Please note that IRDA has already increased STFI and Earthquake rates from 15th December 2018.
So total impact on New business as well as renewal in Fire Portfolio will be around 3 to 4 times increase in premium in above listed Industry.
These above changes are requested by GIC to all Insurance companies. We are yet to receive advice from Insurance companies for the implementation.
We will update you timely on the subject matter.
Further to add; we will provide you our best services during the currency of the policy .
In case of any query, please revert to us.
Thanking you.
Beacon Insurance Brokers Pvt. Ltd.
We Ensure Happiness