BISMI Electronics is a medium-sized business that sells electronic appliances and gadgets. They hold significant stock in their showroom and warehouse located in an urban commercial area of Delhi. On 10th June 2025, a bu
CS Professional · Banking and Insurance - Laws and Practice · PYQS · December 2025
BISMI Electronics is a medium-sized business that sells electronic appliances and gadgets. They hold significant stock in their showroom and warehouse located in an urban commercial area of Delhi. On 10th June 2025, a burglary occurred at night at the godown. Thieves broke in after disabling the alarm system & CCTV and stole inventory worth ₹ 15,00,000. The company has a Burglary Insurance Policy in place with XYZ Insurance Co., with the following terms: Sum Insured: ₹ 20,00,000; Policy Type: Declaration Policy (Stock Value Declared Monthly); Monthly Declared Value for June 2025: ₹ 12,00,000; Policy Excess (Deductible): 5% of the Claim Amount Exclusions: Loss due to Employee Involvement, Losses without forcible entry, and under-insurance clause applies. Upon investigation, the insurer discovered the following: (a) There were signs of forcible and violent entry. (b) No evidence of employee involvement. (c) The actual value of stock at risk on the date of the burglary was ₹ 15,00,000. (d) The loss assessed and approved was ₹ 15,00,000. In view of the above information answer the following questions : What key documentation would be required to process this claim ?
Answer & Explanation:
The insured must provide the following documents to the insurer: The policy details, including the policy number and it should be a running policy. The FIR copy and details of the police station where the same was filed. The description of the assets stolen, including the list of materials and other items. The CC TV recording just before the theft and the details regarding the functioning of the alarm. Properly filled and signed the claim form. Newspaper cuttings/Fire Brigade report / Panchnama. Photographs of the damaged site and/or goods. An estimation of the insurance claim. Surveyor's report.
Topics: Burglary Insurance
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