Understanding

Main Occupancies of
Fire Insurance
 Objective

To make every entrant to understand the

regular occupancies they would come
across in their daily business life.
 Abrasive Manufacturing – 2%o

Abrasive is a sheet used for grinding, polishing or cleaning a hard

surface. Unit which manufactures such sheets / items falls under
this occupancy
 Aerated Water Factories – 1.5%0

Unit which makes Soda (adding carbon dioxide air) and drinking
water
 Arecanut / Betelnut factories – 2%0

Unit which process Arecanut / betelnuts into sliced pieces or

Arecanut plates
 Book Binders, Envelope and Paper Bag
Manufacturing – 2.5%0

Units manufacturing Envelopes, Paper bags & Binding books etc.,

Building in course of construction – 1%0

Buildings where civil construction work is going on must be rated

under this occupancy
Brickworks (including refractories and fire bricks) –
1%0

Unit manufacturing normal & refractory bricks

Cable Manufacturing – 2.5%0

Unit which manufacture cables

Camphor Manufacturing – 3%0

Unit which manufacture camphor

Corrugated Box/Carton Box Manufacturing –
2.25%0
Unit manufacturing Carton / Corrugated boxes
 Carpenters, Wood wool Manufacturing,
Furniture Manufacturing and other wood
worker shops (excluding saw mill) – 4.5%0
A Place where sized timber are made into Wood board, Furnitures
etc.,
 Saw Mills (including Timber Merchants
premises where sawing is done) – 5.5%0

Wood logs are converted into Sized timber using cutting blades
Cement / asbestos/concrete products
Manufacturing – 1.5%0

Manufacturing Asbestos sheet, hollow block bricks, etc.,

 Chemical Manufacturing(others),
Pharmaceuticals, Toiletry products – 2.25%0
Chemical manufacturing process include any chemicals having
flash point > 32 degree
Chemical Manufacturing(Using materials with
Flash Point below 320C),Bulk Drug
Manufacturing – 3%0
Chemical manufacturing process include any chemicals having flash
point < 32 degree
Cloth Processing units situated outside the
compound of Textile mills – 1.75%0
Any process happening done on cloth or Grey cloth like Dyeing,
Bleaching, Stentering, Compacting etc.,
 Coal/Coke/Charcoal ball & briquettes
Manufacturing – 5.5%0
A briquette is a compressed block of coal dust or other combustible
biomass material such as charcoal, sawdust, wood chips, peat, or
paper used for fuel and kindling to start a fire
 Coir Factories – 3.5%0

Coconut fibre is extracted from the husk of coconut.

Coconut husk Coir bale

Coconut curl rope Coco pith blocks

 Condensed Milk Factories, Milk
Pasteurizing's Plants and Dairies – 1.5%0
Pasteurization is the process of heating milk up and then quickly
cooling it down to eliminate certain bacteria
 Confectionery Manufacturing, Confectionery
Manufacturing Plants, Sugar Candy Manufacturing
Plants and Sweet meat Manufacturing Plants –
1.75%0
The process of making food items that are rich in sugar and
carbohydrates.
 Cotton Gin and Press Houses – 10.5%0
Process of separating cotton fibers from their seeds bolls and dust
particles. Later loose cotton is press it to make cotton bale
Cotton Seed cleaning / Delinting Factory – 4.5%0

Short, fine fibres which separate from the surface of cotton seed, Cotton
manufactured from waste fabric & garment (Shredding Process).
Electric Generation Stations Others - 1.5%0

A plant that produces electricity by using wind, solar etc.,

Electronic Goods Manufacturing /Assembly –
2.25%0
A place where Assembly of electronic items and mechanical
welding works, Soldering works, Testing works are carried out for
assembly.
 Engineering Workshop – 1.25%0
A Place where heavy engineering manufacturing works are carried
out.
 Engineering Workshop (Others), Clock/Watch
Manufacturing, Motor Vehicle Garages – 1.75%0
A Place where light engineering works are carried out. Example –
CNC, Lathe work shop (job work), Drilling, Shaping, Motor vehicle
service station.
 Flour Mills - 3.5%0

Unit equipped with machinery for grinding grain into flour

 Fruit and vegetable drying/dehydrating
factories – 1.5%0
An original water content has been removed either naturally, through
sun drying, or through the use of specialized dryers or dehydrator from
fruits
 Fruit products and Condiment Factories
(including fruit pulp making) – 1.5%0
Place where pulping of fruits carried out and Spice that is added to
food to impart a particular flavor
Garment Makers, Topee, Hats and the like
makers – 2%0
A company manufacturing Garments by way of Cutting,
Sewing/stitching, Ironing / Packing.
Ghee Factories including vegetable Ghee
mfg. – 2%0
Unit which heats butter to evaporate water content and the fat
(clarified butter) is separated from the milk solids
 Grain/seeds disintegrating/crushing/
Decorticating factories/ Dal mills – 2.5%0

Dal Mill & / or units where seeds are removed using machines
Hoisery, lace, Embroidery/Thread factories –
2.25%0

Cotton yarn is converted into Knitted Fabric ( T-Shirt, Inner Wears )

 Leather Cloth Factories @ 3.5%0

Unit which manufactures Soft or similar kind of items using Leather

 Leather Goods Manufacturing ( incl.
boot/shoe) @ 2%0
A Place where Tanned leather is converted into materials like shoe,
purse, Belt, Etc.
 Match Factories @ 5.5%0
Unit which manufactures Match boxes (wooden sticks) falls under
this occupancy.
Mattress and Pillow making @ 4.5%0

Unit where mattress and pillow are manufactured.

 Oil Extraction – 3.75%0

Drilling a wells into an underground reservoir to get crude oil

 Oil Distillation Plants (essential) – 2.5%0

Crude oil is transformed into petrol, Diesel, Gasoline, Asphalt base,

heating oil, kerosene, liquefied petroleum gas, jet fuel and fuel oils.
 Oil Mills refining ( Veg/Animal) – 2%0

Improve the flavour, odor, color and stability of crude oil using
processes that degum, neutralize, bleach and deodorize the oil.
Oil Mills (Vegetable) – 2%0

Crush or bruise oil-bearing seeds

Paper and Cardboard Mills (including Lamination) &
cotton Linter Pulp Factory – 2.25%0
Paper ( A4 Sheet, Kraft paper ) is made from waste paper pulp and
Garment cutting waste & fabric waste is made into pulp to make
paper board in Delinting factory.
Plastic Goods Mfg. using plastic raw materials
having calorific value upto 15000 btu/lb – 2.5%0

This occupancy depends on the raw material and process carried out
there. PVC related goods mfg. & PET Bottles (Blow moulding
method) falls under this occupancy.
Plastic Goods Mfg. using plastic raw materials
having calorific value above 15000 btu/lb –
3.5%0
This occupancy depends on the raw material and process carried out
there. PET Bottles (Injection Moulding method) & other components
mfg. falls under this occupancy. LDPE, LLDPE, HDPE
Plywood / Wood veneering Factories/ Laminating
Factories – 5.5%0

Veneer, Laminating & Plywood factories have to be rated under this

occupancy.
Poultry Farms (Excluding birds therein) – 1.5%0
Presses for coir yarn / cotton/senna leaves – 4.5%0
A press for baling Curled coir, Ginned cotton, Senna Leaves
 Presses for coir
fibres/waste/Grass/fodder/boosa/Jute - 10.5%0
Unit engaged in offering baling of coir fibre, Grass, Jute etc..
 Printing Press - 2.5%0
Units where printing on paper or garments activity is taking place
have to be rated under this occupancy.
Pulverising Plants(Metals and non-hazardous
goods) – 1.5%0
A pulverizer or grinder is a mechanical device for the grinding of
many different types of materials. Unit deals with non-hazardous
item must be rated under this category.
 Pulverizing Plants (Others) – 3%0

Activities involves grinding of Dried leaves & others

 Rice Mills – 3%0
Process involves remove the husk and the bran layers from paddy
and produce an edible, white rice kernel that is
sufficiently milled and free of impurities.
 Rubber Factories – 3%0
Activity involves tapping the sap from the rubber trees, filtering
the latex and then packaging it in drums for export or processing.
 Rubber Goods Mfg with Spreading – 3.5%0
Rubber compound is mixed with low flashing solvent to form a
rubber solution. This is also called as rubber dough. The spreading
machines evenly distribute the rubber dough onto the fabric as it is
drawn under it, using a blade called as doctor blade and then the
fabric is drawn in to drying oven where solvent gets evaporated.
Example – Toluene, Hexane, Benzene
 Rubber Goods Manufacturing without
spreading – 2.5%0
Rubber factories where Spreading process is not carried out.
Example- molded rubber component.
 Sea Food / Meat Processing – 2%0
Process involves preserving sea food products from deteriorating,
Frozen it and Export.
 Tapioca Factories - 2%0

Starch and Tapioca manufactured from Tapioca root

 Stone quarries – 1%0

A quarry is a place from which dimension stone, rock, construction

aggregate, sand, gravel has been excavated from the ground
Surgical Cotton Manufacturing – 4.5%0

Plant involves in manufacturing of surgical absorbent cotton,

Bandage roll, Dispensable cotton etc.
 Tanneries – 1.5%0

A place where animal hides are tanned; the workshop of a tanner.

 Tea Factories – 2.5%0

Different grades of Tea Powder is manufactured from Tea Leaves

Textile Spinning Mill – 2.25%0

Unit where yarn is manufactured form cotton.

 Composite mill – 2%0
Inaddition to spinning, activities like cloth processing / Hosiery must
be rated under this category. The finished goods on this occupancy
will be fabric.
 Vermicelli factories - 1.5%0
A unit where Pasta, macroni, Ragi, Multi grain product, short and
long vermicelli are manufactured from Wheat flour like maida and
semolina
 Weaving Mills – 1.75%0
Powerloom units where weaving activity is done by machines
 Yarn Processing – 1.75%0

A place where Yarn dyeing, Yarn doubling, Yarn twisting activities

are carried out. Both RM & FG are yarn only.
 Zip Fasteners Manufacturing – 2%0

A device consisting of two flexible strips of metal or plastic with

interlocking projections closed or opened by pulling a slide along
them, used to fasten garments, bags, and other items.
 GODOWN - Non-hazardous

Closed Godown – 1%0 Open Godown – 2.5%0

 Godown - Category I hazardous Goods

Closed Godown – 2.5 %0 Open Godown – 6 %0

Godown - Category II hazardous Goods

Closed Godown – 4.5%0 Open Godown – 8.5%0

Godown - Category III hazardous Goods

Closed Godown – 5.5%0 Open Godown – 10.5%0

Cold Storage – 2.25%0

A form of Refrigerated storage.