. THE FIRE CLAIM AND ITS SETTLEMENT

.THE FIRE CLAIM AND ITS SETTLEMENT.......

purpose of immediate notice clause in the contract is to enable the
investigate the loss while it is still warm.
2. Claim Form. The insurance company on receipt of the notice will supplya claim form to the insured. The policy-holder is required to furnish a completenventory of the destroyed, damaged, undamaged property, showing in details
quantities, costs, actual cash value and the amount of loss claimed.
Evidence. The insured should try to produce the documentary proof ofthe actual loss as far as possible to the company. The books of account, bills etc.if attached with the claim help the company in the early settlement of claims.
Proof of loss. In order to determine the insurer's liability, the policyholder is also required to furnish a signed and sworn statement of the (1) timeand origin of loss (2) the interest of the insured (3) the cash value of the loss (4)any change in the title of the property insured (5) by whom and for what purposethe building was occupied at the time of loss etc. etc.
Inspection and assessment of loss. The insurance company sends itsspecialized surveyor to examine and determine the loss in the light of documentsand forms received from the policy-holder.
Time limit of paying claims. The insurer is to pay the actual loss,remaining within the limits of the insured policy. The amount shall be payablesixty days after proof of loss is received from the policy-holder.
Time Limit for bringing suit. If there is a dispute in the settlement ofclaim, the parties involved in the insurance contract, can file a suit within the timelimit prescribed in the contract.
Arbitration. The insurance companies normally avoid to file a suit in thecourt in case of disagreement between the parties. The contract usually providesa clause that in case of a dispute, the matter shall be referred to a Board ofarbitration containing one nominee of the insurer and one of the insured. Theaward given by the board is binding on both the parties. In case there isdisagreement among the arbitrators, the case is referred to the umpire whosejudgment shall be final.