August 15, 2021

Fire Claims on Property All Risks Insurance Policy

Fire Claims on Property All Risks Insurance Policy - Gargash Insurance

A leading supermarket chain with multiple locations across UAE had a fire incident. Read on to find out how we supported them through the claims process

The Problem


The insured obtained quotations for repairs from 3 Independent contractors. From the scope of work it was noted the cost pertained only to the Electrical distribution board which caused fire and there was no resultant damage. The loss adjuster reviewed this and declined the claim stating that the fire originated from the distribution board and hence the repair cost of the distribution board cannot be paid (normal electrical clause in a property insurance policy)


The Solution / Outcome


We then studied the policy in detail.  The policy extension included Electrical Clause Waiver. Under this clause, if the damage has originated from electrical appliance causing damage to the appliance itself and leading to resultant damage, both damages are covered. The claim was taken up with the insurer/loss adjuster seeking recourse under this clause. Based on this clause, we were able to convince the loss adjuster.


Observations & Suggestion


We are seeing an increase in the number of fire claims recently, both small ones and large ones. In small claims, where the estimate of loss is less, most of the repairs cost in absorbed by source (in this case electrical components) and small amounts are for the resultant damage which fall within the policy excess. If we can have the Electrical Clause Waiver in the policy this would help the insured in obtaining maximum settlement from the insurer in the event of claim.


If you want to find out more about the inclusions and covers of our Property All Risk Insurance policy, click here

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