Policy holder: Applicant for purchasing insurance policy (client/customer).
Object of insurance :Residential home, industrial or non-industrial
Fire value of building: Construction price of building without the value
Residential unit :A place that is not for work and business and is used
only for residence.
Industrial centers:: Centers in which industrial activities are
performed such as car factories, home-appliances factories, etc.
Non-industrial centers: Centers in which any type of activities but
industrial activities are performed such as stores, hospitals, cinemas,
medicine supply centers, etc.
Major risks or coverage :Fire, explosion, lightning.
Types of Fire Insurance
places and centers that are covered under fire insurance are divided into three
- Fire insurance of residential
In fire insurance of residential units the object of insurance is
building, installations, and household appliances that are covered against
fire risks, explosion, lightning as major risks; and storm, flood,
earthquake and volcano, water pipe bursting, damages due to rainwater and
snow-melt, crash of aircraft, helicopter and their parts, house appliances
and furniture, theft and many other risks. Residential units can be
insured by two individual or group methods. Once the policyholder
purchases group insurance policy which covers more than 15 residential
units, group discounts are also granted.
Fire insurance of residential units is provided in the form of the
- Public plan fire insurance
- Home and family comprehensive
plan fire insurance policy
- Ordinary home fire insurance
- Fire insurance policy for
homes with flood and earthquake coverage
- Mehr fire insurance policy
Public plan fire insurance policy: The advantage of this plan with regard to residential homes
fire insurance is that the flood consequential risk is also among the
liabilities of Bimeh Iran (Iran Insurance Co.), without requesting for
additional coverage. The reason for this issue as a public plan is that all
general and usual risks such as fire, lightning, explosion and flood that are
common risks for all houses are covered. (Iran Insurance Co. started issuing
the Public Plan since 2001).
Numerous covers are introduced under each of these plans. The plans include
home to home plan, family mental health, computer insurance plan, comprehensive
tourists plan, home and family comprehensive plan, public fire insurance plan,
industry and production insurance plan, farmers insurance comprehensive plan,
insurance plan for workers and house members of workers, Mehr plan, marriage
portion insurance plan and marriage dowry insurance plan.
In most of these plans, different insurance coverage of persons and
particularly fire are among the major obligations of Bimeh Iran and sometimes
provide liability insurance. Public Plan fire insurance is one of the plans
that cover flood in addition to major fire risks at a very nominal insurance
House and family comprehensive plan Fire insurance policy: This is one
of the public plans of Bimeh Iran (Iran Insurance Co.), designed since August
2003 and introduced by the representatives of the company referring to the
Ordinary Fire insurance policy for residential homes: Upon request of
policyholder in this insurance policy, in addition to fire risks, explosion and
lightning, the residential building is insured against all additional risks
mentioned above with desired capital and at day price and its annual insurance
premium should be calculated according to the value of building and house
furniture and the insured risks.
Mehr Plan Fire insurance policy: This plan that covers different fire
insurance, liability and home and family accidents was launched for the first
time on 12th October, 2003.
The plan covers the following insurance: Building, installations and
household furniture against fire risks, explosion and lightning. Policyholder’s
liability against physical damages incurred on third parties and neighbors due
to the undertaken risks.
Policyholder’s liability against financial losses incurred on third party and
neighbors due to the undertaken risks.
Indemnity on death and partial or permanent physical defects of policyholder or
the family members, due to incidents caused during any time of the day or
Compensating for medical expenses incurred by accidents to policyholder or to
the members of his family, any time of the day or night.
Duration of the insurance policy may be extended from two to five years upon
the request of the insured. If the insured applies for coverage of additional
risks such as flood, earthquake or storm, this will be covered through
- Fire insurance policy for
Non-industrial centers include all commercial stores, repair shops,
hospitals, public places, office buildings, real estate agencies, medical
centers, foodstuff and protein stores, educational institutes, service
centers, and other similar centers or cases. Buildings, installations,
fixed furniture, stock, and decoration of each of the centers could be
insured with Bimeh Iran (Iran Insurance Co.) at the day’s price against
the risks of fire, explosion, lightning and additional risks.
Property value fluctuations on sum insured: If a property has been
appraised at a price below the real value of insurance, the insurer should
be responsible proportionately to the amount it has insured at the real
value of property. Any property has a current and real price and the
policyholder should be bound to insure his property at that price. If a
policyholder does not insure his property at the real price, this means
that he has not insured all of his property; he will pay lower insurance
premium and will receive less indemnity for the incurred damages. This
rule which is called damage relative rule or the rule of balance of the insured
amount and the damage is applied and implemented for preserving rights of
the insurer and also observation of balance and fairness in the rights of
policyholders. But if the insurer and the policyholder (insured) agrees
that according to a specified formula such as first loss insurance in fire
insurance, the object of insurance is insured at an agreed value that is
lower than its real value, the insurer should not be authorized to apply
capital value rule.