This is the most common insurance coverage that may be effected to protect physical assets from being lost or damaged. The potential for loss would depend much on the physical conditions of the property, the trade process involved including the inherent hazards of the materials used and last but not least, on the standards of management and their attitudes.

The premiums will be determined after the Underwriter has taken into considerations all these factors as well as the scope of coverage required. Sometime, an excess (the first amount of any loss to be borne be the Insured) is imposed for certain losses.

A Basic Fire Insurance Policy only covers loss or damage to the Insured Property caused by the following contingencies :

               Fire
               Lightning
               Explosion of gas used for illuminating or domestic purposes

Extension of coverage are available for the following contingencies subject to acceptance by the Underwriter and the payment of additional premiums by Insured :

• Explosion.
• Riot and strike.
• Malicious damage.
• Aircraft.
• Bursting or overflowing of water tanks, apparatus or pipes.
• Impact by road vehicles.
• Earthquake, volcanic eruption and subterranean fire.
• Hurricane, cyclone, typhoon and windstorm and flood arising   therefrom.
• Flood.
• Smoke damage.
• Sprinkler leakage.
• Spontaneous combustion.

It is important to note that each of these extensions is subject to specific wordings and exclusions and these must be clearly understood.

There are certain standard exclusions which are applied and not calable of being removed and these are as follows :

                • War, invasion, act of foreign enemy, hostilities or warlike operation (whether war be declared or not), civil war.
                • Mutiny, military or popular rising, insurrection, rebellion, revolution, military or usurped power, martial law or state of siege etc.
                • Acts of terrorism.
                • Ionizing radiations or contamination by radioactivity from any nuclear fuel or nuclear waste from combustion of nuclear fuel.
                • Loss or damage by nuclear weapons material.

The sums insured must be adequate at the time of the loss as otherwise, the indemnity will be reduced proportionately to the extent of underinsurance.

Note: This information is for briefing purpose only. Full detail and conditions of policy cover are contained in VIA's official policy wording.