Chapter # 5 Fire Insurance

Fire Insurance
All policies issued under the heading of fire insurance primarily aim at providing protection against financial losses arising out of the operation of fire or certain other specified perils.

The subject matter are:

Building Furniture, Fixture & Fittings Plant & Machineries Goods & Merchandise Stocks of all kinds

Scope of Fire Insurance

Material Loss Insurance Consequential Loss Insurance

Material Loss Insurance

Standard Fire Policy: The policy covers
Fire: Whether resulting from explosion or otherwise, but not occasioned by:
Its own heating Earthquake, riot, war, military power etc.

Lightning Explosion

Losses not covered by Standard Policy

Consequential loss goods held in trust, money, stamps, pictures, designs etc. Unless these are specified Loss or damage caused by radioactive contamination or nuclear fuel or waste Loss covered under Marine insurance

Standard Fire Policy

Reinstatement Policy Declaration Policy Blanket Policy Building in Course

Material Loss Insurance

Additional Peril Insurance Household Policies Sprinkler Leakage Insurance

Consequential Loss Insurance

Loss of earning Standing charges Extra expenses

Prevention of Loss
Indemnification effort Preventive effort

Conditions of Fire Insurance

Ignition Fire should not be intentional rather accidental

Features of Fire Insurance Contract

Proposal
Acceptance Commencement of Risk
Cover Note

Policy
The insurer issues a duly stamped policy which will bear all the terms and conditions of the contract. The policy contains
Name and address of the insured The subject matter Sum insured Terms Premium

Period of Policy
Annual Insurance Short term policy Long term policy

Fire Insurance Policy

More than One Fire during a period More than one policy

System of Rate Fixation

Classification Discrimination Schedule rating: L/V*100 Tariff Rates

Payment of Claims
Steps are taken to check
the policy is in force on the date of occurrence of the loss
the loss is by a peril insured by the policy the property affected by the loss is the same as insured under policy notice of loss is received without undue delay

Payment of Claims
The claim form requires following information
full description of circumstances Cause of fire particulars of the property affected statement of the other insurances on the property sound value of all the property