F IRE I NSURANCE Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period upto the amount specified in the policy. Normally, the fire insurance policy is for a period of one year after which it is to be renewed from time to time. The premium may be paid either in lump sum or instalments. A claim for loss by fire must satisfy the two following conditions: (i) There must be actual loss; and (ii) Fire must be accidental and non- intentional.
The risk covered by a fire insurance contract is the loss resulting from fire or some other cause, and which is the proximate cause of the loss. If overheating without ignition causes damage, it will not be regarded as a fire loss within the meaning of fire insurance and the loss will not be recoverable from the insurer. A fire insurance contract is based on certain fundamental principles Difference between Life, Fire and Marine Insurance B ffi fi L F M j S tt M tt j fil tt j tt j , .t rf E fi L ri F .t ir M ff ll w j tt ff ll w w ll w ll D fi L x ll k rf ir fil w ri F ll .r x ir M ir x ti fi L ir ti ti tir ri F ti .r rf ifi rif j ti x .t ir M ti k lli w ifi L .t L L L S fi L ri F ir M which have been discussed in general principles. The main elements of a fire insurance contract are: (i) In fire insurance, the insured must have insurable interest in the subject matter of the insurance.
Without insurable interest the contract of insurance is void. In case of fire insurance, unlike life insurance insurable interest must be present both at the time of insurance and at the time of