Understanding Fire Insurance Claim: Steps and Considerations

The video tutorial explains fire insurance claims, focusing on the process of filing a claim for loss of stock due to fire. It covers the importance of insurance policies, how premiums are determined, and the steps to calculate actual loss and salvage. The tutorial also discusses the determination of claim amounts, considering factors like total or partial loss and whether the stock is fully insured or underinsured.

What is the primary purpose of a fire insurance policy for a company?

What factors determine the premium amount a company pays for a fire insurance policy?

Explain the process a company must follow to file a claim after suffering a loss due to fire.

What steps should a company take to determine the stock amount on the date of fire?

Describe the implications of having a salvage value when calculating actual loss.

How is the actual loss calculated when a fire occurs?

Differentiate between total loss and partial loss in the context of fire insurance.

What is meant by underinsurance in fire insurance policies?

What is the significance of the sum insured in a fire insurance policy?

How does the insurance company determine the claim amount in cases of partial loss?