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What is fire insurance?

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Devashish Shrivastava Top Contributor
Undergraduate student | Content Writer

The fire protection contract is characterized as "an understanding, whereby one gathering as an end-result of a thought embraces to reimburse the other party against budgetary misfortune which the last may continue due to surely characterized topic being harmed or crushed by fire or other characterized hazards up to a concurred sum". 

Fire, to make the insurer liable under the contract, must satisfy two conditions. In the first place, there ought to be genuine fire or start, and second, the fire must be fortuities in its tendency.

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


(i) There must be actual loss; and

(ii) Fire must be accidental and non-


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.