Revised STFI & EQ (Earthquake) Rate – w.e.f 15/12/2018 - Fire and Engineering Policy

• Rates to be charged for Property (Fire, Fire LOP,BG Package & IAR) Policies

•  Minimum STFI rates to be charged

occupancy	Rate (per mille)
Dwellings other than Co-operative Hsg Society	0.075
Non Industrial – Co-operative Hsg Society, Hotels, shops as per Section III of erstwhile Tariff	0.150
Industrial including utilities located outside the manufacturing and tank farm/gas holders Section IV, V,VII of erstwhile Tariff	0.250
Standalone Storage (outside manufacturing premises) Section VI of erstwhile Tariff (in Godown)	0.350
Standalone Storage (outside manufacturing premises) Section VI of erstwhile Tariff (in open)	1.500

• 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
Dwellings other than Co-operative Housing Society	0.05	0.05	0.05	0.05
Non-Industrial - Co-operative Housing Society, Hotels, Shops as per Section-III of erstwhile Tariff	0.05	0.10	0.15	0.25
Industrial – including Standalone Storage outside the manufacturing units, Utilities outside the manufacturing units.	0.05	0.10	0.25	0.50

• Rates to be charged for Engineering Policies

1. STFI rates to be charged for Engineering policies :- STFI rate for EAR/CAR/CPM/ EEI : 0.3 per mille per annum or 0.03% per cent
2. Earthquake rates to be charged for Engineering Policies :- Additional rates to be charged for all zones as per the table given below irrespective of the occupancy or nature of the project

Earthquake	All rates are in per mille per annum
Zone	IV	III	II	I
EAR /CAR/CPM /EEI (Annual rates)	0.05	0.10	0.25	0.50

Note:-

• The premium on engineering policies in respect of STFI and EQ to be charged on pro rata basis based on duration of the policy.
• No discounts of any kind including higher excess discounts or in lieu of agency commission/brokerage to be allowed as these are minimum rates 
• No deletion of STFI /EQ to be allowed under project policies 
• No first loss basis cover for EQ allowed under project policies.
• The above 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.

N.B. :- Pl note that no cancellation / pre- ponement of existing policy is allowed to offer benefit of lower rate. These rates are bare minimum and subject to no further discount for any reason including in lieu of lower agency commission / brokerage or Higher Excess discount.

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The following rates will be applicable wef. 15th Feb, 2020 and override above mentioned rates

Sr. No.	Description of occupancy/activity	Minimum NATCAT rate (Rs. per mille)
1	Roads	EQ 0.225%o + STFI 1.50%o
2	Pipelines	EQ 0.225%o + STFI 1.50%o
5	Railway Tracks	EQ 0.225%o + STFI 1.50%o
4	T and D lines	EQ 0.225%o + STFI 1.50%o
5	Cellular Network Policies	EQ 0.225 %o + STFI 0.25%o
6	Residential Colonies, Home Welfare Associations, Cooperative Societies, Dwellings owned by Corporates	EQ as per Zone applicable + STFI 0.15%o

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IRDAI Raises Minimum Owner Driver Insurance Cover to Rs 15 Lakh

Previously, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs 1 lakh and Rs 2 lakh, respectively.

Insurance regulator IRDAI has raised the minimum insurance cover for owner-driver to Rs 15 lakh for a premium of Rs 750 per annum, A move to provide some succor to road accident victims. Currently, the capital sum insured (CSI) under this section for motorised two-wheelers and private cars/commercial vehicles is Rs 1 lakh and Rs 2 lakh, respectively.

The regulator directed all general insurers to provide a minimum CSl of Rs 15 lakh under Compulsory Personal Accident (CPA) cover for owner-driver under Liability Only to all classes of vehicles at the premium rate of Rs 750 per annum for annual policy.

This rate will be valid until further notice, Insurance Regulatory and Development Authority of India (IRDAI) said in a circular.

"A higher CSI may be provided over and above Rs 15,00,000 through Optional Covers under Liability Only and under Section lll of Package Policies/ Bundled Covers on payment of additional premium at the option of the insured.

Insurers may start issuing such covers effective from the date of receipt of this circular even while ensuring that the filing for these is done under File and Use Guidelines on or before October 25, 2018, the circular added. All other extant provisions applicable for Motor Third Party Insurance will continue to apply.

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