The Dow Fire and Explosion Index (F&EI) is universally used in evaluating the hazard category of a process plant, area of exposure, expected losses in case of fire and explosion, etc. In the current procedure, the effects of the loss control measures (LCMs) on the F&EI value are not taken into account. This makes the plant look more hazardous, makes it more spread out, requires more elaborate emergency measures and alarms the public and the civil administration more than is necessary. It also affects the insurance premium. We suggest taking the effects of the LCMs into account in the F&EI value. We call this the 'Offset F&EI' value. It favorably affects all the above items, and other related ones. To do this, we have developed the relevant equations and have proved the efficacy of the Offset F&EI by means of an example. © 2003 Elsevier Science Ltd. All rights reserved.