Infina works with a panel of IRDA certified Risk Inspectors who will complete a thorough evaluation of the various exposures facing your business. We also complete a valuation of assets so that there is no underinsurance in the sum insured declaration. The Risk Inspection and Valuation report will form an integral part of the insurance policy and will ensure that the nature of risk is well documented. The report will provide cost effective, practical loss prevention recommendations to reduce the frequency and/or severity of loss. The report will be used by the underwriters in determining the terms of your insurance cover. This becomes particularly relevant in the event of a claim, as it ensures that there has been transparency in declaration of risk for underwriting and documentation.
We encourage our customers to complete a thorough risk inspection, so that the various types of risk exposures are documented in the policy.
Importance from an Insurance Perspective
The Risk Inspection report forms an integral part of the policy document and in the event of a claim it gives strength to the insured in its positioning on the assets insured. The insurers also like such reports as the risk is prudently declared to the underwriters.
The risk inspection will help in the determination of appropriate pricing terms as the nature of risk is properly documented. Particulars of previous losses, if any, by fire or other perils, their causes, the extent of loss and measures taken will be documented in the report.
Adequacy of Sum Insured
Although the inspecting engineer is not a professional valuer, he is required to express an opinion as to whether the amount proposed for insurance approximates to the value of the property. This ensures that there is no underinsurance in the event of a claim.
This is one of the most important sections in the report. The risk engineer makes detailed practical suggestions with respect to improvement of risk from a loss prevention standpoint.
Some of the areas covered in the Risk Inspection Report are (suggested layout: maybe this can be represented by a diagram in a report format, which is a sample of the report itself):
Description of plot areas, construction features, nature of business conducted, quality of construction, comments on constructional features, layout and surrounding areas.
Lighting, Heating and Power
Detailed information is provided with respect to electrical installation, methods of heating used in the process of manufacture, condition of wiring, the position of switches and fuses and the position of combustible material nearby.
Process of Manufacture
A detailed description of the process of manufacture, inherent hazards in the manufacturing process, storage of materials, condition of machinery, safety standard and compliance with guidelines.
It is necessary to indicate construction and occupancy of buildings adjacent to the risk and the nature of separation between the adjoining buildings and the proposed risk.
A comment is made on the distance of the premises from the nearest fire brigade station. Additionally, fire prevention systems, controls, safety awareness and communication with employees are also reviewed.
Management and Supervision
The risk engineer’s observation on housekeeping is included. Housekeeping includes such features as general tidiness and cleanliness, congestion, disposal of waste, storage of packing materials,