Legal Tips

Fire Insurance Policy

Document Date: 15 February 2011

Here are some Frequently Asked Questions on the topic "Fire Insurance Policy":

1. What are the events covered under a fire insurance policy?
   
2. Are there any exceptions?
   
3. What are the interests that can be covered under this policy?
   
4. How do I make a claim under this policy?
   
5. What documents must I produce?
   
6. Under NTUC Income's policy, what are NTUC Income's rights with regards to "Salvage"?
   
7. Can a fire insurance policy be assigned?
   
8. How do I cancel this policy?
   

1. What are the events covered under a fire insurance policy?
   
   Under this policy, cover is provided for your insured property against loss or damage by:
   
   • fire
   • lightning
   • explosion
   • extraneous perils such as riot and strike; malicious damage; impact damage by road vehicles and aircrafts; bursting and overflowing of waterpipes; windstorm and flood

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2. Are there any exceptions?
   
   Generally the fire insurance policy does not cover the following risks:
   • Loss of earnings, loss by delay, loss of market or other consequential or indirect loss or damage
   • Loss or damage resulting from total or partial cessation of work or the delay or interruption or cessation of any process or operation
   • Loss or damage resulting from confiscation, seizure or requisition by any lawful authority
   • Loss or damage resulting from the unlawful occupation of the building by any person
   • Loss or damage caused directly or indirectly by nuclear weapons or ionising radiations or contamination by radioactivity
   • Loss, damage, cost or expense caused directly or indirectly by war and various acts of uprisings and any action taken in controlling, preventing and suppressing these acts
   • Loss, damage, cost or expense caused directly or indirectly by any act of terrorism and any action taken in controlling, preventing and suppressing any act of terrorism

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3. What are the interests that can be covered under this policy?
   
   This policy can be taken up on the following interest:
   
   • The building
   • Furniture, fixtures and fittings*
   • Office equipment*
   • Stock-in-trade*
   • Rent

   * The following interests are excluded:

   • Bullion or unset precious stones
   • Any curiosity or work of art for an amount exceeding S$200.00
   • Manuscripts, plans, drawings or designs, patterns, models or moulds.
   • Securities, obligations or documents of any kind, stamps, coined or paper money, cheques, books of account or other business books, or computer system records
   • Coal, against loss or damage occasioned by its own spontaneous combustion
   • Explosives

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4. How do I make a claim under this policy?
   
   You must give immediate notice to NTUC Income on the happening of any loss or damage. If the estimated claim amount is more than $3,000 or if the incident is serious, you must call us at 6788-6616 as we may require a survey to be carried out.
   
   You must also, within 15 days of the loss or damage, deliver a claim in writing, listing all the articles or items of property that had been damaged or destroyed and their value at the time of loss or damage. You must also provide particulars of all other insurances, if any.
   
   

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5. What documents must I produce?
   
   You have to substantiate your claim by producing relevant documents such as plans, specifications, invoices, books and provide all necessary information on the cause and origin of the fire and the circumstances under which the loss or damage occurred. In addition, you may be required to execute a declaration on oath of the truth of the claim and of any matters relating to your claim.
   
   

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6. Under NTUC Income's policy, what are NTUC Income's rights with regards to "Salvage"?
   
   On the happening of any loss or damage to any insured property, NTUC Income may:
   
   • enter and take and keep possession of the building or premises
   • take possession of any property of the insured in the building
   • keep possession and examine, sort, arrange, remove, or otherwise deal with any such property
   • sell or dispose of any such property

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7. Can a fire insurance policy be assigned?
   
   Generally, a fire insurance policy cannot be assigned because it is a personal contract between the insurer and the insured against loss suffered by the insured for his property. However, in a contract of sale of land (property), the buyer and seller may agree that the purchaser is entitled to the benefit of any fire insurance taken out by the seller subject to the consent of the insurer and payment of the premiums by the purchaser.
   

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8. How do I cancel this policy?
   
   You can cancel the fire insurance policy by notifying NTUC Income of your intention to terminate the policy.
   
   If the policy does not cover stock-in-trade, there will be no refund of the premium when your policy is cancelled. However, if the policy applies to stock-in-trade, NTUC Income shall only retain a premium calculated according to its customary short period scale for the time the insurance was in force.
   
   NTUC Income may also cancel the policy by notifying you of NTUC Income’s intention to terminate the policy. In this case, you will be refunded a rateable proportion of the premium for the unexpired term from the date of termination.

[LG/VY/LPN/Feb2011]