Question

Describe the procedure for taking a fire insurance policy.

Answer 1

The person who wants to take a fire policy should approach the insurance company and fill up the proposal form. He should fill in this form the details regarding the estimated value of the property, its location, etc. After receiving the proposal form, the insurance company sends its surveyor to assess the risk. On the basis of the surveyor's report, it decides whether or not to accept the proposal. If the insurance company accepts the proposal, the insured is asked to pay the first premium. On payment of the premium, a cover note is issued, which is later replaced by the insurance policy. Coverage of risk begins on the date of the payment of the first premium.