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TARIFF ADVISORY COMMITTEE FIRE CIRCULARS 2001
ALL FIRE CIRCULARS ISSUED DURING 2001
CIRCULAR
DATE
SUBJECT
NO.
FT/1/2001
3112001
All India Fire Tariff Revision of Petrochemical Tariff
FT/2/2001
922001
Householders and Shopkeepers Package Policies.
FT/3/2001
922001
Time Limit for Finalising annual Maintenance contract
required for sanctioning/continuation of Fire Extinguishing
Appliances discount.
FT/4/2001
922001
Revised Special Rates Under Floater Decleration Policy
Warehousing Corporations.
FT/5/2001
232001
Householders and Shopkeepers Package Policies.
FT/6/2001
1932001
Revised Petrochemical Tariff effective from 3132001
FT/7/2001
2732001
Revision of All India Fire Tariff
FT/8/2001
2732001
Revision of Voluntary Deductible Scheme under
Petrochemical Tariff effective from 3132001
FT/9/2001
2732001
Tailormade policy for stocks in General Warehouses
Corporation.
FT/10/2001
2732001
Computation of PML for Mega risk
FT/11/2001
342001
Revision of All India Fire Tariff Special Provision
FT/12/2001
3032001
Midterm cancellation of Operational policies to change
over to comprehensive all Risk Policies for Mega Risks.
FT/13/2001
1842001
Revision of All India Fire Tariff Special provision
FT/14/2001
3072001
Revision of Tariff Item "Nitrocellulose Manufacturing"
FT/15/2001
3072001
Extension of Tariff Item " Nitrocellulose Manufacturing"
FT/16/2001
3072001
Rating of Pipelines for earthquake cover located outside the
compounds of Industrial Complex including their contents.
FT/17/2001
4102001
Rating of Automobile Filter Manufacturing
FT/18/2001
4102001
Fire Rating for Tractors lying in open.
FT/19/2001
9102001
Change in the provisions to include Mounded Bullets under
Petrochemical Tariff.
FT/20/2001
21112001
Rating of 'Pilot Plants' under AIFT 2000.
FT/21/2001
21112001
Rating of Confectionery Manufacturing
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FT/22/2001
12112001 Deletion facility in respect of STFI/RSMTD perils.
FT/23/2001
21122001
Application of surcharge on premium to cover risks arising
on account of Terrorism.
FT/24/2001
21122001
Guidelines for Determination of PML.
FT/25/2001
21122001
Consequential Loss (Fire) Tariff profit rate for 15 months
Indemnity period applicable to Petrochemical Tariff.
FT/26/2001
21122001
Rating of Compound walls, fencing and crematoriums.
FT/27/2001
21122001
Rating of Health Club, Gymnasium and Swimming Pool
under new Tariff.
FT/28/2001
21122001
Excess in Householders and Shopkeepers Package Policy
FT/29/2001
21122001
Rating of CNG Compressor installed in Petrol/kiosks in
CNG stations.
FT/30/2001
26122001
Corrigendum.
FT/1/2001
January 31, 2001
Sub :All India Fire Tariff Revision of Petrochemical Tariff
The Tariff Advisory Committee has revised Petrochemical Tariff. A copy of the revised
tariff is herewith.
The following decisions will apply :
The revised tariff will come into force for all new business and renewals falling on or after
3132001.
Insured can cancel the existing policies (all Fire Policies pertaining to the risk) on prorata
basis and switch over to the new tariff w.e.f. 3132001 as a one time exception.
In case of risks where the aggregate premium of all Fire Policies pertaining to the risk goes
up under the new tariff, such risks can renew the policies at the rates and terms of the old
(existing) tariff for one year.
Risks presently rated under the existing Petrochemical Tariff, which go outside the purview
of the new Petrochemical Tariff in view of the revision will be allowed to continue under
the new tariff if the insured so desire as a one time option. However, once the option is
exercised the risks shall continue to be rated under Petrochemical Tariff and the option to go
outside the purview of Petrochemical Tariff shall not be available to such risks thereafter.
Rates and terms as per the provisions of new tariff can be finalised by the insurers
themselves without any reference to TAC. In other words, no inspections will be carried out
by TAC engineers to fix rates and terms.
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The amendment on basis rate for CL (Fire) cover communicated vide our Circular
No.FT/2A/2000 dated 452000 shall not apply to risks rateable under Petrochemical Tariff as
brought out under the opening para of the said Circular. The CL (Fire) rate will continue to
be governed by the existing CL (Fire) Tariff
Insurers are requested to inform their operating offices suitably in this regard.
FT/2/2001 February 9, 2001
Sub : Householders and Shopkeepers Package Policy
The Tariff Advisory Committee has decided to revise rates, terms and conditions for the
above risks in case of tariff components under new All India Fire Tariff as below :
Householders Policy
Shopkeepers Policy
Perils covered
Perils of standard Fire and
Perils of standard Fire and
Special Perils Policy and
Special Perils policy and
Earthquake
Earthqauke
Rate
Rs. 0.50 per mille
Rs. 2.25 pwe mille
Excess
5% of the Sum Insured
5% of each claim for AOG
perils subject to a maximum od
Rs. 25,000/
Under Insurance
15% of the Sum Insured
15% of the Sum Insured
It is not permissible to delete STFI and RSMTD perils from the scope of the cover.
The above changes shall be effective from 152000.
Insurers are requested to advise their operating offices suitably in this regard.
Secretary
FT/3/2001 February 9, 2001
Time limit for finalising Annual Maintenance Contract required for sanctioning
/continuation of Fire Extinguishing Appliances discount
The Tariff Advisory Committee has decided to allow a time limit of one year (from 15 2000)
i.e. upto 3042001 to the Insured to finalise Annual Maintenance Contract with approved third
party agencies to certify the satisfaction level of the Fire Extinguishing Appliances at the risks
for granting/continuation of F.E.A discounts by the Companies. The Quantum of F.E.A.
discounts for various Fire Extinguishing Appliances shall be as per revised All India Fire Tariff
effective from 15 2000 where Standard Fire and Special Perils Policies have been issued to the
Insureds. The requirement of Annual Maintenance
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Contract would apply strictly from 152001.
Insurers are requested to advise their operating offices suitably in this regard.
FT/4/2001 February 9, 2001
Revised Special rates under Floater Declaration Policy granted for the stocks of Central
Warehousing/State Warehousing Corporation and Marketing Federations owned by State
Govt.
The Tariff Advisory Committee has decided the following rating options in case of the
above risks for the period 20002001 where Standard Fire and Special Perils Policies have
been issued as per new All India Fire Tariff.
Standard Fire and Special perils policy with the deletion of STFI and RSMTD perils : Rs.
1.25%o
Standard Fire and Special perils policy with the deletion of STFI perils only : Rs. 1.50%o
Standard Fire and Special perils policy with the deletion of RSMTD perils only : Rs.
2.00%o
Standard Fire and Special perils policy : Rs. 2.25%o
Insurers are requested to advise their operating offices suitably in this regard.
Secretary
FT/5/2001 March 02, 2001
Sub : Householders and Shopkeepers Package Policies
Insurer's attention is invited to our Circular no. FT/2/2001 dated February 09, 2001 on the
captioned subject. The decision contained in the circular would be effective from March
01, 2001 for all new business and renewals falling due on or after March 01, 2001 and not
w.e.f 152000 as stated there in.
Insurers are requested to advise their operating offices suitably in this regard.
Secretary
FT/6/2001 March 19, 2001
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Corrigendum
Sub : Revised Petrochemical Tariff effective from 3132001
Insurers' attention is invited to the above Tariff sent with circular no. FT/1/2001 dated 31 12001 and they are requested to note the following modifications:
Sheet 1
The following Note should be added as Note 1 under 'Scope':
"Note 1: Urea Synthesis Plant shall be rated under this tariff and a basic rate of Rs.2.75%o
shall apply. This rate is subject to the warranties given under Section 6."
Note 2 (existing) : The number 2000 appearing in bracket under this Note should read as
2001.
The existing Note 1 and Note 2 should read as Note 2 and Note 3 respectively.
Sheet 2
A new item as below should be added as item no. 2.1.8 on sheet no. 2:
"2.1.8 Unstable liquids/gases : A liquid or gas may be termed as unstable if it has known
characteristics of being readily subjected to rapid chemical change under industrially approved
storage or handling practices. Examples are Ethylene Oxide, Acrylonitrile, Acrylene,
Hydrogen Cyanide and the like. However, substances which are subject to simple and
harmless decomposition or polymerisation should not be considered as unstable for the above
purpose."
Sheet 3
The number 5.1.3.4 appearing in bracket in the Note under item no.3.2 should read as 5.4.
Sheet 5
Subitem 4.3.1 should read as below :
"Add together all loading and deduct therefrom all discounts as given in Section 6.2, 6.3
and 6.4 respectively and the net loading or discount should be applied to the basic rate as
worked out in accordance with the rating procedure set out in Sections 5.1, 5.2 and 5.3 to
obtain Standard Fire and Special Perils rate."
Subitem 4.3.2 should read as below :
"The Standard Fire and Special Perils rate for each plant/unit after application of all
loading and discounts should not be less than 65% of the basic rate applicable as per
sections 5.1, 5.2 and 5.3 nor shall it be more than 165% of the basic rate."
Sheet 6
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The words "basic package rate" appearing in bracket in the first line under item 4.3.3 shall
read as "Standard Fire and Special Perils rates."
Sheet 7
Subitem 5.1 (e)
Table no. 5 in the 3rd line should read as Table no. 4.
Sheet 9 :
The number '21' shown under column no (2) at row (d) should read as '26'.
The number '131' shown under column no (5) at row (g) should read as '130'.
Sheet 10:
Note 2 under Table 3 should read as under:
"For arriving at the hold up capacity in the discrete circuit the quantity of materials in the
process equipment along with the connected train of equipment/knockout drum/pipeline
etc. contained by shut off valves shall be taken."
Sheet 11:
Table no. 4
Basic Rate for Final Process hazard factor of 1.50 and Material factor 21 should read as
3.640 instead of 2.640.
Sheet 13
The words "and Hazardous Catalyst" appearing under item no.5.3.1.9 c) should be deleted
Note appearing under item 5.3.1.9 should read as under :
" Note For buildings of other constructions and open storage of products listed in (a), (b),
(d) and (e) above, an extra of 15% should be charged on aforesaid rates.
Sheet 16
The wording of the column header for the third column should read as under:
"If warranty is deleted or modified, items on which loading to be applied and % loading."
Sheet 17
Warranty 6.2.8
The wording in the last column should read as below :
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"5% on particular plant/unit"
Warranty 6.3.1
The words "20% on particular to tank" appearing under warranty 6.3.1 should read as "20%
on particular storage tank".
The last line in column no.2 in respect of item 6.3.2 should read as
" 2,00,000 KL and above" instead of "more than 2,00,000 KL".
The word "package" appearing under item 6.4 should be deleted.
The wording for column header (applicable to Tank Farm) between item no 6.3 and 6.3.1
for the third column should read as under:
"If warranty is deleted or modified, items on which loading to be applied and % loading."
Sheet 18
The wording for column header for the third column should read as under:
"If warranty is complied with items on which discount to be applied and % discount".
Sheet 21
The item 7.3.1 should read as below:
"A full time permanent Secretary having a back ground in Fire fighting relevant to the types
of industries included in the scheme. There shall be a permanent office for the Secretariat
with necessary staff."
Sheet 23
The word "Development" appearing under item 7.6.3 should be replaced by the word
"Deployment".
Insurers are requested to advise their operating office suitably in this regard pending
printing of the revised Petrochemical Tariff.
Secretary
FT/ 7 /2001 March 27, 2001
Re : Revision of All India Fire Tariff
The Tariff Advisory Committee has revised the All India Fire Tariff. A copy of the revised
tariff is enclosed.
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The revised tariff will be effective for all new business and renewals falling due on or after
3132001.
Insurers are requested to advise their operating offices suitably in this regard.
SECRETARY
FT/ 8 /2001 March 27, 2001
Re : Revision of Voluntary Deductible scheme under Petrochemical Tariff
effective from 3132001
Further to the Committee's circular no. FT/1/2001 dated 3112001 in respect of new
Petrochemical Tariff the Insurers are hereby informed that the Committee has decided to
revise the Voluntary deductible scheme for Petrochemical Tariff. This revised scheme will
be applicable for new Petrochemical Tariff coming into force for all new business and
renewals falling on or after 3132001. The revised Voluntary deductible scheme is enclosed.
Insurers are requested to advise their operating offices suitably in this regard.
SECRETARY
Annexure
Voluntary Deductible Scheme
(for New Petrochemical Tariff effective from 3132001)
a) Material Damage Claims
Deductibles
Discount (%) on M.D. Premium
(ii) 6.% of Claim amount subject to
minimum of Rs. 75 lakhs
(ii)7.5% of Claim amount subject to
10
minimum of Rs. 3crores
(iii)8.5% of Claim amount subject to
15
minimum of Rs. 10 crores
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(iv)10% of Claim amount subject to
25
minimum of Rs. 20 crores
N.B.1 : The discount shall not exceed 25% even if the insured selects a deductible higher
than that given under sub item (iv) above.
N.B.2: Voluntary Deductible once opted shall apply to the entire property insured and no
selection shall be allowed.
b) Business Interruption Claims
Deductibles
Discount (%) on FLOP Premium
(i)7 days Gross Profit subject to
minimum of Rs.10 lakhs (shall not
2.5
apply for P risks)
(ii)14 days Gross Profit subject to
minimum of Rs. 20 lakhs
iii)21 days Gross Profit subject to
7.5
minimum of Rs. 30 lakhs
(iv)28 days Gross Profit subject to
10
minimum of Rs. 35 lakhs
(v)35 days Gross Profit subject to
15
minimum of Rs. 40 lakhs
(vi)60 days Gross Profit subject to
25
minimum of Rs. 45 lakhs
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.
FT/ 9 /2001 March 27, 2001
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Re : Tailormade Policy for Stocks in General Warehouses/Container Freight Stations/
Bonded warehouses belonging to M/s. Central Warehouses Corporation.
The Tariff Advisory Committee has decided as below in respect of cover under single
policy for stocks belonging to the above Insured lying in General Warehouses, Container
Freight Stations and Bonded Warehouses :
A Floater Declaration Policy can be given for the goods lying at various locations including
Container Freight Stations, Bonded Warehouses and General Warehouses.
The sum insured should be the Maximum value of Goods held in the previous year. Any
increase in Sum Insured noticed during the currency of the Policy should be advised to the
Insurers and corresponding additional premium should be paid as per Tariff provisions.
Underinsurance upto 15% should be ignored. However, if the same exceeds 15% at any
time the actual underinsurance should be taken into account for arriving at the loss.
The special rates granted by the Committee (ranging from Rs. 1.25%o to Rs. 2.25%o as per
the circular no. FT/4/2000 dated 09022001) in respect of godowns/warehouses for
Central/State Warehousing Corporations should apply in this case.
The insured can declare the values quarterly or half yearly or yearly basis within 90 days of
the expiry of such periods subject to the consent of the Insurer.
Insurers are requested to advise their operating offices suitably in this regard.
SECRETARY
FT/10/2001 March 27, 2001
Re :Computation of PML for Mega Risks
Insurer's attention is invited to TAC letter no. FIRE/369 dated 61299 wherein the decision of
the Committee to allow the risks with PML exceeding Rs. 1054 crs.to go out of the purview of
the tariff was conveyed. The Committtee also decided to accept SwissRe module for
computation of PML by the Insurers.
It has now been decided that any insurer desiring to issue Comprehensive All risks Policy
for mega risk as per the above norm shall submit their application with inspection report to
TAC, Head Office for PML assessment by the Committee.
Insurers are requested to advise their operating offices suitably in this regard.
SECRETARY
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FT/11/2001 April 03, 2001
Re : Rvision of All India Fire Tariff Special Provision
This has reference to our Circular No. FT/7/2001 dated 27th March, 2001 on the captioned
subject. Insurers are informed that wherever the premium goes up in respect of policies
renewed upto 3042001, the same may be renewed for one more year at the existing rates
under erstwhile AIFT.
Insurers are requested to advise their operating offices suitably in this regard.
SECRETARY
FT/ 12 /2001
March 30, 2001
Re : MidTerm cancellation of Operational policies to change over to Comprehensive All
Risks Policies for Mega Risks
The Tariff Advisory Committee has decided that the Insurers shall follow the existing All
India Fire Tariff provisions for issuing policies on short period basis or for midterm
cancellation of annual Policies to avail comprehensive All Risks Policies in respect of
Mega risks.
Insurers are requested to inform their operating offices suitably in this regard.
SECRETARY
FT/13/2001 April 18, 2001
Re : Revision of All India Fire Tariff Special Provision
Further to our circular no. FT/11/2001 dated April 03, 2001, insurers are informed that
policies falling due for renewal on or after 152001 shall not be cancelled mid term to take
advantage of the provisions of the circular undr reference i.e. FT/11/2001 dated April 03,
2001.
It is further clarified that the erstwhile tariff referred to inthe circular (Ft/11/2001) includes
AIFT in force prior to 3132001 and 152000.
Insurers are requested to inform their operating offices suitably in this regard.
SECRETARY
FT/ 14 /2001
3072001
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Re: Revision of Tariff Item "Nitrocellulose Manufacturing"
The Tariff Advisory Committee has decided to revise the above tariff entry "Nitrocellulose
Manufacturing" to take care of the Industrial grade nitrocellulose manufacturing . The
revised tariff entry shall read as under:
Risk
Rate
Description of Risk
Rate (Rs.per mille)
Code
Code
133
18
Nitro Cellulose Manufacturing
5.50
24
Industrial Grade
15.00
Others
The revised rates would apply for all fresh business and renewals falling on or after the date
hereof.
Insurers are requested to instruct their operating offices suitably in this regard.
Secretary
FT/15/2001 Date : 3072001
Re: Extension of the Standard Fire & Special Perils Policy to cover damage due to Molten
Material Spillage
The Tariff Advisory Committee has decided the following rates, terms and conditions for
the above cover as an extension of the fire cover on "First Loss" basis.
Rates and Terms
Premium Rate
MD
Re. 0.65%o
LOP
Re. 0.65%o
Deductible
MD
Nil
LOP
7 days
Conditions:
There shall be no claim due to molten material spillage during the 2 years period prior to the
policy period at inception.
LOP cover to be limited to 50% of respective loss limit opted for material damage
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3. loss or damage to the spilled material to be excluded
The above decision will be effective for all fresh business and renewals falling on or after
the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/16/2001
3072001
Re: Rating of pipelines for earthquake cover located outside the compounds of Industrial
Complex including their contents.
The Tariff Advisory Committee has decided to charge a single rate of Re. 0.35%o
irrespective of the earthquake zones for extending the Standard Fire and Special Perils
Policy to cover Earthquake (Fire & Shock ) for the pipelines located outside the
compounds of industrial complex and passing through different Earthquake zones. This
rate shall apply for the contents of the pipelines also.
The above decision will be effective for all fresh business and renewals falling on or after
the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/ 17/2001
Date : 4102001
Re :Rating of Automobile Filter Manufacturing
The Tariff Advisory Committee has decided to introduce a new tariff item as below in
Section IV of All India Fire Tariff to take care of the above occupancy :
Rate Code Name of Tariff item Rate in Rs. per mille
09 Automobile Filter Mfg. 2.50%o
The above decision will be effective for all fresh business and renewals falling on or after
the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
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FT/ 18/2001
Date : 4102001
Re: Fire rating for Tractors lying in open
Arising out of a representation the Tariff Advisory Committee has decided to charge Category
I storage rate i.e. Rs. 6.00 %o for vehicles stored in the open including tractors.
The above decision will be effective for all fresh business and renewals falling on or after
the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/19/2001 Date : 9102001
Re : Change in the provisions to include Mounded Bullets under Petrochemical Tariff
The Tariff Advisory Committee has decided to modify the following provisions of the
Petrochemical Tariff as under to include Mounded Bullets :
Warranty No. Description Discount
6.4.11(a) Warranted the storage tanks of identification ... is underground 15%
6.4.11(b) Warranted bullet/vessels of identification... is mounded 10%
"4.2.1 Rulings"
Between mounded vessels and plants : 15 meters
Between mounded vessels and tanks/gas holders : 15 meters
Between mounded vessels : 2 meters
Between mounded vessels and utilities : 15 meters
The above decision shall be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/ 20/2001
Date : 21112001
Sub : Rating of 'Pilot Plants' under AIFT 2000
The Tariff Advisory Committee has decided to introduce a new tariff entry as below in
Section V of All India Fire Tariff to take care of the above occupancy :
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Name of Tariff item Rate in Rs. per %o
Pilot Plants Rate applicable to the manufacturing facility available
The above decision will be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/ 21/2001
Date : 21112001
Sub : Rating of Confectionery Manufacturing Plants under AIFT.
The Tariff Advisory Committee has decided to combine the following entries with a single rate
as below in the current All India Fire Tariff to take care of the concerned occupancies
Name of Tariff item Rate in Rs. per %o
Confectionery Manufacturing Plants,
Sugar Candy Manufacturing Plants and 1.75%o
Sweet meat Manufacturing Plants
Separate entries with different rates for the above items in the current AIFT stand deleted.
The above decision will be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/ 22/2001
Date : 12112001
Sub : Deletion facility in respect of STFI/RSMTD perils
Arising out of a query on deletion facility for STFI/RSMTD perils in respect of "Silent
Risks", Tariff Advisory Committee has decided to clarify that it is permissible to exclude
the above perils at the inception of the policy only in case of risks rateable under Section
IV and V of the All India Fire Tariff. Reduction in premium rate for such deletion may be
allowed as shown under the concerned sections.
You are requested to advice your operating offices suitably in this regard.
Secretary
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FT/23/2001
21122001
Application of a surcharge on Premium to cover risks arising on account of Terrorism
Further to our circular No. TAC/3/2001 dated 1102001, TAC has decided as follows.
The surcharge of 10% referred to in our circular No. TAC/2/2001 and TAC/3/2001 will be
treated as premium.
No option will be given to the insureds to opt out of terrorism risks during the current
policy year.
Insurers are requested to inform their Regional Offices, Divisional Offices and Branch
offices suitably.
Secretary
FT/24 /2001
21122001
Re : Guidelines for Determination of PML
Insurers' attention is invited to the Item 5 of circular No. IRDA/Genl/R1/ dated 15th March
2001 issued by the IRDA, NEW DELHI which is reproduced below:
5. "All Insurers are required to follow the method of determination of PML suggested by
the Tariff Advisory Committee in so far as statutory cessions are concerned, even if the
insurer chooses to follow a different basis for the purpose of its retention and other
reinsurances."
The guidelines enumerated in Annexure 'A' are followed by TAC in determining PML.
Secretary
FT/ 25/2001
Date : 21.12.2001
Re: Consequential Loss (Fire) Tariff Profit rate for 15 months Indemnity
Period applicable to Petrochemical Tariff
Arising out of a query from an Insurer the Tariff Advisory Committee has decided to
provide Profit Rate for 15 months indemnity period for Petrochemical risks. Accordingly,
the tables for profit rates for Petrochemical risks under Section II for rating of
Consequential Loss (Fire) Tariff stand revised as below:
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PROFIT RATES (FOR PETROCHEMICAL RISKS)
Period of
6 or
9
12
15
18
24
30
36
Indemnity in
less
months
LOP Standard
225
270
300
290
285
270
255
240
Profit Rates as
% of Basis rate
The rate based on loss of profit insurance claims experience for latest five(5) (excluding
expiring policy period) years expressed as percentage of basis rate will be as follows :
Period of
6 or
9
12
15
18
24
30
36
Indemnity in
less
months
CLAIMS
RATIO
A) Upto 20%
100
108
120
117
114
108
100
100
B) Over 20%
112.5
135
150
145
142.5
135
127.5
120
upto 50%
C) Over 50%
164
197
219
215
208
197
186
175
upto 100%
D) Over 100%
225
270
300
290
285
270
255
240
upto 200%
E) Over 200%
375
450
500
485
475
450
425
400
(Risks which have not completed 5 years of loss of profits insurance will be rated as per this
scale but subject to minimum of standard rate. If loss ratio over such shorter period is higher
than 200% then category (E) will apply.)
The above decision will effective for all new business and renewals falling due on or after
the date hereof.
Insurers are requested to advise their operating offices suitably in this regard.
Secretary
FT/ 26/2001
Date : 21.12.2001
Re: Rating of Compound Walls, Fencing and Crematoriums
The Tariff Advisory Committee has decided to introduce the following new tariff entries
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in Section V of the AIFT :
Rate Code Description of Risk Rate (Rs. per mille)
Boundary Walls
09 a) Made of combustible materials 2.50
05 b) Others 1.50
04 Electric Crematoriums 1.25
The above decision will be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/ 27/2001
Date : 21.12.2001
Re: Rating of Health Club, Gymnasium and Swimming Pool under new AIFT
Arising out of queries from Insurers the Tariff Advisory Committee has decided as below :
1) Health Club, Gymnasium and Swimming pool :
It was decided to rate the above occupancies at Re.0.50 per mille under Risk Code 1, Rate
Code 01 of Section III of the AIFT.
2) Water Tanks:
It was decided to rate Water Tanks at a rate of Re.1.00 per mille under Section V of AIFT
meant for Utilities and Standalones. Accordingly, the existing tariff item "Water Treatment
Plants" in Section V stands modified as "Water Treatment Plants/Water Tanks"
The above decision will be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/28/2001 Date : 21.12.2001
Excess in Householders and Shopkeepers Package Policy
The Tariff Advisory Committee has decided to make the following changes in the "Excess"
provision of the Householders and Shopkeepers Policy :
Householders Policy
Shopkeepers Policy
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Excess
NIL
a) The first 5% of each and
every claimsubject to a
minimum of Rs. 10,000/and
maximum of Rs. 25,000/ in
respect of each and every
loss arising out of "Act of
God Perils" such as
lightning, STFI, Earthquake,
Subsidence & Landslide and
Rock slide covered under the
policy.
b) The first Rs. 10,000 for
each and every loss arising
out of other perils in respect
of which the Insured is
indemnified by this policy.
The above decision will be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/29 /2001
Date :21122001
Rating of CNG Compressor installed in Petrol/Diesel Kiosks and in CNG Stations
The Tariff Advisory Committee decided to impose a loading of 10% on the premium rate
for the Petro/Diesel Kiosks rateable under Section III of the AIFT where CNG compressors
would be installed.
Accordingly the existing tariff entry stands modified as below :
Risk Code
Rate Code
Description of Risk
Building rate
Contents rate
%o
%o
04
022
Shops dealing in
1.80
3.80
hazardous goods as per the
list attached, Arms &
Ammunition dealers,
Motor vehicle show rooms
including sales and
service, Petrol /Diesel
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Kiosks
Note : 10% loading is applicable on the rate for presence of CNG installation(s) in
Petrol/Diesel Kiosks.
The Committee had also decided to introduce a new tariff entry "Compressor Houses" in
Section V of the AIFT to take care of compressors handling air, inert gas and CO2 and
compressors for handling CNG and similar materials as under:
Rate Code
Description of Risk
Rate (Rs. per mille)
Compressor Houses
05
Compressors handling air, Inert Gas and CO2
1.50
15
Compressor (others)
4.50
The above decision will be effective for all fresh business and renewals falling due on or
after the date hereof.
Insurers are requested to inform their operating offices suitably in this regard.
Secretary
FT/30/2001 Date : 26122001
Corrigendum
This has reference to our circular no. TAC/23/2001 dated 21122001. The circular no. may be
changed to TAC/7/2001 dated 21122001 instead of TAC/23/2001.
The date of the circular FT/22/2001 may be changed to "21112001" instead of "12 112001".
Insurers are requested to note the change and inform their Regional Offices, Divisional and
Branch offices suitably.
Secretary
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