What Is Floater Policy
A floater policy can be issued for stocks at various locations under one sum insured (The standard floater clause I, annexure a shall be attached to such policies).
Rating: The rate shall be the highest rate applicable to the insured’s stocks at any location with a loading of 10%.
a) Unspecified location shall not be allowed/covered.
b) In case stocks in a process block are covered under the floater policy and the rate for the process block is higher than the storage rate, the process rate plus 10% loading shall apply.
c) Presence of ‘Kutcha’ construction may be ignored.
d) If stock situated within Godowns/Process blocks in the same compound are covered under floater policy, no floater extra is chargeable.
Excess: Minimum deductible will be, 5% of claim amount subject to a minimum of Rs. 50,000. (Cir.No.HO:FTD.12 w.e.f.27-7-2012)
What Is Declaration Policies
To take care of frequent fluctuation in stocks/stock values, a declaration policy can be granted subject to the following conditions (standard declaration clause J, annexure a shall be attached to such policies):
a) The minimum sum insured shall be Rs 1 crore in one or more locations and the sum insured shall not be less than Rs.25 lakhs in at least one of these locations. It is necessary that the declared values should approximate to this figure at some time during the policy year.
b) Monthly declarations based on 1) the average of the values at risk on each day of the month or 2) the highest value at risk during the month shall be submitted by the insured latest by the last day of the succeeding month. If declarations are not received within the specified period, the full sum insured under the policy shall be deemed to have been declared.
c) Reduction in sum insured shall not be allowed under any circumstances.
d) Refund of premium on the adjustment based on the declaration /cancellation shall not exceed 50% of the total premium.
e) The basis of values for declaration shall be the market value anterior to the loss.
f) It is not permissible to issue a declaration policy in respect of
- Insurance is required for a short period.
- Stocks undergoing the process.
- Stocks at Railway sidings.