It is in the favour of both Insurer and Insured to take precautionary measures to reduce the possibilities of loss by utilizing certain risk management techniwues i.e., from installing of fire fighting equipments, anti theft devices to proper house keeping. The precautionary measures to reduce the possibilities of loss is in the joint interests of both the Insurer and Insured, whilst the Insurer enjoyed the benefits of reduction in its claim bills, the Insured can avail the benefits of premium discounts with resultant reduction in premium level.