How do the insurers assess loss due to fire at shop covered under a fire policy?
My uncle has taken a fire policy on his shop. Recently the shop caught fire and the stock was burnt. Even the books of accounts were destroyed. My uncle is not even assessed for income tax. How will the insurers assess the loss?
Naveed Haidar, Ghaziabad
The insurance surveyors deputed by the insurance companies to assess the loss are trained and qualified to assess losses in circumstances like this, and may resort to carrying out a volumetric analysis of the shop, by taking into account the layout of the shop and method of storing the goods at the time of occurrence of the fire. On the basis of the quantum of stock and its present price, the value of loss can be ascertained. Similarly, the surveyor may collect the remains of the burnt items to gauge the amount of stock in the premises before the fire, and thus determine the value of the loss incurred by your uncle.