Re: CAT perils rate effective from 01/03/2012.

Re: CAT perils rate effective from 01/03/2012.

It has been decided that separate rates shall be charged for STFI (Storm, Tempest, Flood and inundation) group of perils and for Earthquake fire and shock perils in respect of all Fire and Engineering policies w.e.f 01/03/2012.

The rates indicated below are minimum rates. Insurers can charge/impose loading  depending on the claims experience and other underwriting parameters. It shall be the responsibility of the risk acceptance authority to ensure that appropriate loading is charged on the minimum rates given below based on the claim experience, risk profile and other underwriting parameters. But there is no provision to give any discount including higher excess discount on these minimum rates. These rates are additional rates and there will not be any reduction in the current Fire and special perils rate already being charged by the company.

I)                    Rates to be charged for Property (Fire & IAR) Policies

I a)          STFI rates to be charged

Occupancy	Rate (per mille)
Dwellings	0.01
Non Industrial- , Hotels, Shops as per Section III of ET	0.05
Industrial including utilites located outside the manufacturing premises and tank farms/gas holders Section IV V VII of ET.	0.10
Standalone Storage (outside manufacturing premises)Section VI of ET.	0.15

I b) Earthquake rates to be charged

For Earthquake the rates have been adopted zone wise and Industrial and non-industrial wise which is as under. The Zones are classified as per the current zones in the erstwhile tariff.

Zone	IV	III	II	I
Non-Industrial-Dwellings, Hotels, Shops as per Section III of ET	0.05	0.05	0.05	0.05
Industrial - Including Standalone storage, out side the manufacturing Units, Utilities outside manufacturing units ( All Sections except III of ET)	0.05	0.1	0.25	0.5

II)                  Rates to be charged for Engineering Policies

II a) STFI rates to be charged for Engineering  policies

STFI rate for EAR/CAR/CPM/ EEI :  0.15 per mille per annum

II b) Earthquake rates to be charged for Engineering Policies

Additional rates to be charged for all zones as per the table given below

Earthquake		All rates are in per mille per annum.
Zone	IV	III	II	I
EAR/CAR/CPM/ EEI (Annual rates)	0.05	0.1	0.25	0.5

Note:  1.   The  premium on engineering policies in respect of STFI and Eq is to be charged on pro rata basis based on duration of the policy.

             2.  No discounts of any kind including higher excess discounts is to be allowed as these are minimum rates.

The above rates are the minimum rates to be charged and all insurers are free to load the rate based on the individual risk features and claims experience. The risk acceptance authority shall ensure that appropriate loading is charged on the minimum rates given above based on the claim experience, risk profile and other underwriting parameters. The above guidelines shall be effective from 01/03/2012 in respect of all Fire and Engineering policies.

Please take a careful note of the aforesaid contents and circulate the same to all concerned. A line of confirmation ensuring necessary compliance will be highly appreciated.

(Kuldip Singh)

 General Manager.

c.c to IT/BPR Deptt-For information and necessary action. Please make and incorporate the above changes in the system.

c.c to IA&ID,HO-For information.

c.c.to all GM’s at HO/GM cell Mumbai.

c.c to all departments at HO.

c.c to R&D department-For information.