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SPECIAL CONTINGENCY INSURANCE

ABOUT

Insurers have generally classified their products under Property Insurance, Personal Insurance and Liability Insurance. All Insurance products are designed in such a way that no two products offer identical cover under different classifications. This uniqueness allows the insuring public to get clarity when they seek to insure their exposures.

The concept is easier said than done due to complexity of certain trades and businesses.

All the Insurances contain certain exclusions which are generally uninsurable. However, there are some genuine situations which are neither covered in terms of the operative clause nor clearly stated as exclusions. You may have such a kind of exposure which probably cannot be covered by the existing policies in the market even though the fundamental idea of insurance is to transfer all unforeseen risks.

Any contingency that is not permitted under any other insurance can be covered under this Policy. The person or firm that has envisaged such a contingency will be the Insured. All parameters such as Sum Insured, Person to be covered, Properties, Perils, territorial limits can be defined clearly. All relevant terms and conditions, which are otherwise applicable, would be applicable for this insurance as well.

SPECIAL CONTINGENCY INSURANCE

BENEFITS

Let’s assume a businessman is owning / hiring Petrol and/or Diesel Bunks and engaged in the business of selling the products. Petrol and/or Diesel is received from Tanker Lorries and filled in the underground tanks.

Arising out of negligence of employees / drivers of Tankers and/or Suppliers and/or employees of the Bunk including those hired on casual basis, there is a possibility of wrong decantation of products. Wrong decantation occurs when either Petrol or Diesel is decanted into the underground tank not designated for a particular product (For Example Petrol is decanted into the underground tank designated for Diesel and vice versa). Such decantation would result in:

  • Loss of product already existing in the underground tank.
  • Loss of product filled due to wrong decantation from the Tankers.
  • Expenses incurred for reprocessing the mixed products in the Refinery.
  • Expenses incurred for cleaning the underground tank.
  • Any other Expenses connected with the occurrence of wrong decantation.

Arising out of negligence of employees (including those hired on casual basis) of Bunks, there is a possibility of Customers’ vehicles getting filled with mismatching fuel (Say, a Petrol Vehicle filled with Diesel and vice versa). This may result in:

  • Loss of product wrongfully filled.
  • loss of product left over in the tank of the vehicle prior to wrongful filling.
  • All Expenses incurred in respect of the vehicle related to wrongful filling such as cleaning, repairing the engine etc.

Add On Covers

The Special Contingency Policy shall indemnify the Insured in respect of all financial losses arising out of loss / damage to product and all other expenses including those mentioned above due to:

  • Wrong decantation (or by whatever term the activity of decantation is reckoned).
  • Wrong fueling into the Customers’ Vehicles (or by whatever term the activity of filling is reckoned).

You may note that the above mentioned exposure is just one example of genuine risks which are currently uninsured under the standard array of insurance products available. Similar genuine risks across various industries may be covered with a Special Contingency Policy

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