Page 181 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Insurance Laws and Practices Mahesh Kumar Sarva, Lovely Professional University

Notes Unit 10: Fire Insurance

CONTENTS
Objectives
Introduction

10.1 Meaning and Definition
10.2 Elements of Fire Insurance
10.3 Kinds of Policies

10.4 Payment of Claim under Fire Insurance
10.5 Re-insurance
10.5.1 Peculiar Features of Reinsurance Business
10.6 Summary
10.7 Keywords

10.8 Review Questions
10.9 Further Readings

Objectives

After studying this unit, you will be able to:

Explain the meaning and definition of fire insurance
Know the elements of fire insurance
Discuss the kinds of policies
Describe the payment of claim under fire insurance

Understand the concept of re-insurance

Introduction

In the previous unit, you have studied about the elements of general contract, meaning and
definition of marine insurance. It dealt with explaining the kinds of marine insurance policies.
The unit also summarized the various clauses incorporated in marine insurance and concepts
such as marine losses and procedure for payment of claims under marine insurance.

In this unit, we will study about fire insurance. Fire insurance contracts cover the risks of
damage by fire. They insure the risk of loss caused whether by fire or incidental to fire. Thus, fire
insurance policies cover the insurance business in which the risk to the asset is from fire or
incidental to fire. A fire insurance policy covers the fire and other occurrences as stated in the
policy. The inclusion of various clauses to cover matters related to fire in the policy is essential
to cover the loss caused due to various reasons.
The policy should mention clearly the subject matter/assets insured. The contract of fire insurance
will not cover the assets, which are not mentioned in the policy document, though the loss is
caused to the assets because of the fire. The policy document is the evidence of conclusion of the
contract.

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