Dominic K. P., Managing Director, Blue & Gray
With booming infrastructures in India, is no stranger to the devastating impacts of fire-related incidents. As urbanization progresses, the risk factors associated with fires in commercial and residential buildings increase. Insurance companies play a pivotal role, not only in providing financial coverage against such tragedies but also in actively promoting the adoption of robust fire systems. Here’s a closer look at their influential role.
Mandatory Fire Insurance for Commercial Establishments
Many Indian cities have made it mandatory for commercial establishments to have fire insurance. Insurance companies, recognizing the immense risks involved, stipulate that these businesses must have standard fire safety measures in place before they can be insured. This indirectly forces businesses to adopt fire systems and comply with safety norms.
Implementing an effective functional Fire Protection system and Passive Fire Protection in a building can significantly contribute to obtaining better insurance premiums. Insurance companies must assess the risks associated with a property when determining premiums.
The Role of a Passive Fire Protection in Reducing The Risk
A well-designed Passive Fire System plays a crucial role in reducing risks and containing fires within a building.
Passive fire protection systems should be an integral part of the building to reduce the risk and containment of fires within a building. Insurance companies must recognize the value of such systems in preserving life and property, and they may reward property owners with better premiums for investing in and maintaining a robust passive fire protection infrastructure.
Regular inspections, maintenance, and documentation of these systems are essential to demonstrate an ongoing commitment to safety and risk mitigation.
Premium Reduction as an Incentive
Insurance companies should offer premium discounts to entities that go above and beyond the minimum fire safety requirements. This not only encourages businesses to invest in advanced fire protection systems but also promotes a culture of safety and preparedness.
Regular Audits and Inspections
To ensure compliance, insurance companies often conduct routine audits and inspections of the insured properties. These inspections verify the functionality and maintenance of fire safety equipment. Non-compliance or neglect can lead to a cancellation of the policy.
Collaborations with Certified Contractors
Insurance companies should collaborate with fire protection contractors, offering packages that include both fire protection installers and passive fire applicators. Such collaborations make it financially attractive for businesses and occupants to invest in quality fire safety equipment.
Knowledge Dissemination & Training
A robust fire system is only as effective as the people operating it. Recognizing this, many insurance companies in India should host workshops, training sessions, and awareness campaigns on fire safety. By educating the insured about the importance and proper use of fire systems, they not only reduce risks but also ensure that in the event of a fire, damage is minimized.
Claims and Feedback Loop
After any fire-related incident, insurance companies should engage a third-party Fire Risk auditor or Fire experts or Retired Fire Officers to conduct thorough investigations to determine the cause and assess the effectiveness of the installed fire systems. This feedback loop is vital. It helps in understanding any new risks and refining the requirements for future policies.
Conclusion
As India continues to grow and urbanize, the challenges posed by firerelated risks will only escalate. Insurance companies, by intertwining the need for safety with financial incentives, play a crucial role in ensuring that buildings are well-equipped to combat these threats. Their proactive approach not only safeguards assets and lives but also reinforces the importance of a culture of preparedness and a Fire-Safe India.
*Views expressed in the article are solely of the Author
