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How to Make Claim on a Property Insurance Policy

Property insurance covers damage to the location of the business and also furniture and fittings, machinery and goods stored in the factory premises due to

  • Fire
  • Lightning
  • Earthquakes
  • Landslides
  • Explosions and Implosions
  • Riots
  • Tsunami’s and floods
  • Floods
  • Malicious damages

This also covers burglary and theft and in exports and imports business you have marine insurance particularly hull of the ship insurance and insurance of the cargo carried by merchant ships (Freight).

Damage to goods in transit (freight) being transported by rail, road and air.

How is the claim made in case of damage to your property?

Intimate the insurer as soon as possible of the damage to your property. The Insurer appoints a surveyor who inspects the damage to the property. In case of fire damage a fire brigade report is necessary to make your claim. In case of a tsunami/lightning/Earthquake (Act of God) a newspaper report or a meteorological report is necessary. You need to submit policy details, the proof of loss as well as access of the damage (The damage report) made by the surveyor. In case of the machinery/equipment purchased on loan the bank documents are necessary to prove that you are the owner of the equipment. Submit photographic evidence of the damage (Broken equipment and structural damage) to the business and the property. Obtain written statements from witnesses who have seen the incidents and see if they are willing to make statements on the incidents. If the witnesses speak to the surveyor then it would be much easier to establish your claims. Keep your documentation ready (Business reports or records) that prove the value of the equipment and can show how much you have lost in case of damage.


  • File your claim as early as possible. This will help you to get your claim settled fast.
  • Keep proof of your loss (Video/Photo) and do not exaggerate the loss. Insurers run on indemnity meaning you have to show proof of loss and you cannot take an insurance policy for a profit.
  • Maintain proof of conversation with the Insurer (All email conversations) and so on as well as the date of the conversation to enable easy settlement of your claim.
  • Keep the damaged goods to show the insurer so that you can easily make your claims.
  • Make your own damage assessment report from a private contractor/builder so that you get a fair idea of the damages of your property. This will help you compare notes with the surveyor and check if your losses have been recorded properly.
  • Make sure of the claim deadlines (Time period within which you need to make your claims) in order to avail the benefits of the policy.
  • Do not just place the claim .Do your follow ups in a proper manner and keep pursuing the matter until your claims are settled.

How is your claim settled?

If your claim is small you can opt for a cash settlement where you make the repairs yourself and then the amounts you spend are recompensed by the Insurer.

If you claims are large (Your property is damaged by a flood or a fire) then the Insurer sends a surveyor to access the loss to the property. Your lost property is then replaced. If your machinery was old you are provided a machine of similar age. You cannot profit from your misfortune as insurance policies are not taken for profits.

The Insurer appoints a reputed builder who would construct and repair the property up to the earlier state. You can off course enter into a contract/agreement with the builder for the betterment of your property. This is between you and the builder.

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