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Fire insurance means insurance against any loss caused by fire. Section 2(61 of the Insurance Act defines fire insurance as follows: Fire insurance business means the business of effecting, otherwise than incidentally to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies. What is Fire? The term fire in a Fire Insurance Policy is interpreted in the literal and popular sense. There is fire when something burns. In English cases it has been held that there is no fire unless there is ignition. Stanley v. Western Insurance Co. Fire produces heat and light but either o them alone is not fire. Lighting is not fire. But if lighting ignites something, the damage may be covered by a fire-policy. The same is the case with electricity.
be assigned as a chose-in-action under the Transfer of Property Act. The insurer is bound when notice is given to him. But the assignee cannot be recovering damages unless he has an insurable interest in the property at the time when the loss occurs. A stranger cannot sue on a fire policy. 11. Payment of Claims: Fire policies generally contain a clause providing that upon the occurrence of fire the insurer shall be immediately notified so that the insurer can take steps to salvage the remainder of the property and can also determine the extent of the loss. Insurance companies keep experts on their staff of value the loss. If in a policy there is an international over valuation of the property by the policy-holder, the policy may be avoided on the ground of fraud.
7. Standard Fire Policy :Such policy covers all the loss caused by lighting burning, earthquakes and floods. 8. Replacement Policy :Under this policy insurance company pays more than the actual value of the property destroyed by fire and also covers the cost of replacement. 9. Transit Policy :Transit policy is issued to transfer the goods carefully on its destination. If the subject matter is destroyed due to fire then company compensates the loss. 10. Profit Insurance Policy :Sometimes due to business closes for few days or for few months. Businessman looses the profit due to close of business. So this policy covers the profit which sustains due to fire. Insurance Company pays the profit on the basis of previous years average. 11. Rent Insurance Policy :Some times due to fire one shop or store damages. Now the owner of shop had already given.
SCOPE OF FIRE INSURANCE FIRE INSURANCE BUSINESS: Loss Due To Fire, Lightening, Explosion, Implosion,, Riots & Strikes, Impact By Rail, Aircraft Damage, Earth Quake, Flood, Storm, Tempest, Tornado, Typhoon, Cyclones & Land Slide. 8. Insurable object in Fire Insurance Building Electrical installation in buildings Machinery, Plant and equipment Goods ( raw materials, stocks in process, semi finished, finished etc ) in factories Godowns, Goods in open Contents in dwellings Shops, Hotels etc. Furniture, fixture and fittings, pipelines located inside or outside the compound etc.
Fire contributes maximum deaths occurring everywhere in the world because of natural disasters. Nearly 8 out of 10 deaths due to fire takes place in the home. After every one and a half a minute fire occurs in the residential areas.
Fire insurance policy is suitable for the owner of property, one who holds property in trust or in commission; individuals/ financial institutions who have financial interest in the property. All immovable and movable property located at a particular premises such as buildings, plant and machinery, furniture, fixtures, fittings and other contents, stocks and stock in process along with goods held in trust or in commission including stocks at suppliers/ customer's premises, machinery temporarily removed from the premises for repairs can be insured. Coverage Includes
Fire Lightning Explosion/Implosion Aircraft Damage Riot, Strike, Malicious Damage Storm, Typhoon, Hurricane, Tornado, Flood and Inundation Impact damage Subsidence and landslide including Rock slide Bursting and overflowing of water tanks, apparatus and Pipes Missile testing operations Leakage from Automatic Sprinkler Installation Bush Fire
measures that can be taken in the case of any events. The insurance company may terminate the contract when it comes to know that the facts are not disclosed. 3. Personal Contact A fire insurance contract is a personal contract. The insured is involved in this contract with his property. Therefore, the insurance company should have detailed and full knowledge about the behavior and character of the insured. As it is a personal contract, the insurance policy cannot be transferred without the permission of the insurance company. If the possession of the insured goods or property is transferred to the third person, the company has a right to terminate the contract of insurance.