(2) That the fire was accidental. ) Was.
1. A fire cannot be regarded as “fire” in a contract of insurance if the flame has not appeared. Some things get burnt or scorched due to chemical effect or get destroyed due to high temperature, but if the flame (ignition) did not appear in that action, then it cannot be called burnt or scorched by fire. If flame appears due to electric shock and the damage is caused by it, then that loss will be considered to be due to fire, but if flame does not appear, then that loss will be considered to be due to electric shock and not due to fire.
There are many natural calamities that can harm your business or property. Landslide, storm, fire, riot etc. are the main ones in these natural calamities.
There are many insurance companies that offer cover for your property against these perils, so that you do not have to worry about damages caused by unforeseen circumstances.
A typical fire insurance policy protects your business.
In this way, this insurance helps you to start the business again by helping you financially in case of any kind of loss.
Today in this article we will learn about Fire Insurance and see how it works.
What is fire insurance? – What is Fire Insurance in Hindi
It is an important form of insurance that protects people against property damage due to fire. Under this insurance policy, all types of damages caused due to fire are borne by the policy.
Basically insurance policy is a contract under which a person pays a fixed amount i.e. premium to the insurance company from time to time and in return the insurance company compensates the person for loss of property due to destruction or fire. Pays money in the form of
Fire insurance policies not only provide coverage for the cost of repair, replacement and reconstruction of the insured properties but also provide protection to those whose life or livelihood is affected due to damage to the property.
The Fire Insurance policy in India is governed by the “Tariff Advisory Committee” .
All types of movable and permanent properties can be insured according to the standard plan and special perils plan of fire insurance. Various types of properties are insured under fire insurance in India such as industrial buildings , offices , shops , places of worship , shopping malls , hospitals , clinics , apartments and houses and many more.
Benefit of Fire Insurance – Benefits of Fire Insurance
Fire insurance is always a wise decision, it has the following benefits-
- Fire insurance policy provides protection of house, shares, household furniture, industrial building etc.
- This policy provides an option of properties or properties alternative for loss due to fire.
- This policy provides protection to the home owner against damages caused to the house due to fire.
- Under this policy, coverage is also available for damage to household goods such as plywood, home furniture, carpets, clothes, etc. due to fire.
- This policy also includes coverage for repairs or alternatives to electronic items such as televisions, computers, air coolers.
- Fire Insurance policy provides maintenance or alternative facility in case of breakdown of machines or any kind of damage due to fire in industries.
- Under this policy, the medical expenses of the employees are also covered in case of injury due to fire incident inside the company.
For the above reasons, taking fire insurance is one of the wisest decisions. You can also buy it online.
Coverage available under Fire Insurance Policy – Which are Covered Under Fire Insurance Policies
This insurance plan not only covers damages caused by fire but also covers damages caused due to other natural calamities. The fire insurance policy covers the following common perils:-
- Fire insurance policies provide coverage for any type of damage caused by fire.
- The insured will get coverage for the expenses incurred due to the explosion.
- Damage caused by lightning is also covered under fire insurance.
- Damage caused due to explosion is also covered under fire insurance.
- Damage caused by fire or any other means to the aircraft or aircraft equipment is covered under the fire insurance policy.
- Damage caused to properties due to strike or riot or terrorist activities is covered under Bihar Insurance.
- Fire insurance also provides coverage against damages caused by natural calamities like tornadoes, hurricanes, storms, floods, etc.
- The destruction caused due to landslide or rockslide is also covered under the fire insurance policy.
- Fire insurance also provides coverage if the damage is caused due to the overflow of the water tank of the property.
What is not covered under fire insurance? – What is Not Covered Under Fire Insurance Policies.
Despite covering many such natural calamities other than fire or fire, there are some such calamities or perils which are not included in Fire Insurance , it is as follows:-
- Losses due to heating, fermentation or spontaneous burning are excluded from the cover of fire insurance.
- fire damage due to earthquake
- damage caused by war invasion and insurrection
- Underground fire and its damages
- Damage caused by setting fire to property by order of public authority
- Loss caused by theft during or after fire
- damage caused by nuclear hazards
- damage caused by pollution
- willful damage
Types of Fire Insurance Policies – Types of Fire Insurance Policies
There are different types of fire insurance plans available in India depending on the coverage requirement of different individuals. The need based insurance policies are of the following types:-
For Fixed Assets :-
- Replacement value policy :- As the name suggests, the concept of replacement works for the loss due to any type of peril under this policy. Under this policy, the insurance company pays the replacement value of the damaged property. The calculation of loss of property is done on the basis of the age of the property by deducting the depreciation value from its market value.
- Reinstatement value policy :- There is nothing new under this policy it is just an additional clause of replacement value policy. As per this clause, the insurance company undertakes to restore the damaged property to its pre-damage condition. This clause applies to fixed assets such as buildings. Other properties cannot be covered under this class.
For Non Fixed Assets, Goods and Stocks :-
- Floater policy :- This policy is suitable for properties located at different places. A single policy can be taken for all the properties which covers all the properties on a floater basis.
- Declaration policy :- For properties whose value keeps on changing during the year like stocks in business, declaration policy is suitable.
- Floater declaration policy :- Assets stored at different places whose value fluctuates throughout the year can be covered under a single policy
- Specific policy : – This policy covers only up to a specific amount of damage to the property, which is called the sum insured, which is less than the actual value of the property.
- Comprehensive policy :- As the name suggests, this policy covers maximum against damages caused due to natural calamities.
- Valued policy :- Under this plan, the sum insured (insurance money) is not fixed at the time of purchasing the insurance policy. In case of loss, the claim amount is calculated taking into account the market value of the property.
- Average policy :- Average policy works on the principle of average close of fire insurance policy. In this, in case of loss, when love is done, the full amount of claim is not received, an average claim amount is received. Whose calculations are done by the following formula:
- Consequential loss policy :- This policy of Fire Insurance covers the loss of business profit due to any kind of natural calamity. The calculation of loss of profit is done on the basis of loss of sales.
Best Fire Insurance Companies in India – Best Fire Insurance Companies in India
- Apollo Munich health insurance
- Bajaj Allianz General Insurance
- Cigna TTK
- ICICI Lombard
- L & T General Insurance
- Cholamandalam MS General Insurance
- Bharti AXA General Insurance
- HDFC ERGO General Insurance
- IFFCO Tokyo
- Reliance General Insurance
How to choose the best fire insurance policy and buy it online or from the branch office? – How to Choose the Best Fire Insurance Policy Buy from Online or Branch Office
Due to the different types of fire insurance plans, there is confusion as to which policy is the right one to buy. To remove this confusion, you should consider the following factors while choosing a policy: –
- Type of risk being covered :- The most important factor is the type of risk you are facing. If you have to insure property or assets present at multiple places, then choose the floater policy, if the exact value of the property cannot be ascertained, then you should choose the valued policy. In this way, choose the policy according to the risk.
- Nature of Assets :- Different types of assets are insured with different types of plans according to their nature. For example, you can choose replacement value or reinstatement value policies for property and fixed assets. Apart from this, according to the nature of other assets, you can choose the insurance policy that suits them.
- Coverage Duration : – It is important to know the time period for which fire insurance is to be taken for coverage.
What are the documents required for fire insurance claim? – What Types of Documents Required for Claim Registration in Fire Insurance?
The following documents have to be submitted at the time of fire insurance claim: –
- policy bond
- Completed Claim Form and Sign
- Newspaper cutting related to that incident, if any
- Previous claim reports, if any
- Photos of damaged properties
- Police FIR
- fire brigade report
- Forensic report if any
- final investigation report
Once the claim is registered, the insurance company gets the claim surveyed and then settles the claim.
In fire insurance, if in accidental circumstances an object is on fire which ought not to have been on fire, its loss is said to be loss caused by “fire”.
Damage caused by fire and its prevention
damage by fire
- Due to falling of roof or wall or any other part of a house due to fire or loss of other things due to smoke, heat etc.
- Loss caused while removing the articles of the burning house,
- Damage caused by rain or bad weather to articles kept outside due to fire,
- Loss caused by fire extinguishing action.
- While considering fire insurance proposals for large risks, companies do a thorough risk assessment. The surveyor who is sent for this work also thinks about the measures to reduce the risks and gives practical suggestions about risk improvement. By following such suggestions, the possibility of getting destroyed in case of fire reduces. Thus the society is benefited by the business method of fire insurance.
- There is a company in our country called “Loss Prevention Association of India”, which has organized “Salvage Corps” in major centers of the country. This team co-operates with the fire brigades and takes all possible action in case of fire in order to avoid further damage to the property.
- Insurance companies charge premium only in proportion to the risk and they are ready to give exemption from the normal premium, if the insured makes arrangements for fire extinguishing equipment and fire protection means in the house. Similarly, if the insured does not arrange for fire prevention measures, then the proposal for insurance is also rejected. For these reasons the insurers try to bring the risk as far as possible to an appropriate level of protection and thus reduce the risk of fire.
field of fire insurance
The scope of fire insurance can be broadly divided into two parts – (a) the general scope, and (b) the comprehensive scope.
general area of fire insurance
In fire insurance, the insurer undertakes to indemnify the insured if the subject matter is destroyed by fire during the insurance period. But in the standard policy of fire insurance, many risks are excluded.
1. Disasters are covered in an ordinary fire policy-
- fire (including fire caused by explosion),
- Explosion of a boiler used only for domestic purposes,
- Explosion of gas used for household purposes or for lighting or heating a building.
2. Perils not covered by general fire policy – Many perils are excluded in the policy, that is, the insurer is not liable for their losses. These are as follows:-
- Insurable goods-goods held in trust or on commission, precious metals and jewels, works of art, manuscripts, maps, designs, samples, moulds, securities, documents, stamps, currency, cheques, account books and other business books Explosives. They don’t have insurance.
- All such loss or damage which is in any way related to these events- earthquake, volcanic eruption, hurricane, cyclone, atmospheric disturbance or other natural disturbance, riots, insurrection, revolution, sedition, insurrection, war, attack, martial law or other extraordinary events.
- All such loss or damage as may be caused by perils: (a) theft at the time of or after the occurrence of the fire, (b) by self-fermentation, natural heating or spontaneous combustion (c) by subterranean fire, or Burning of property as per government order (d) Accidental or voluntary burning of forest, bush, pampas, jungle, etc. by fire.
Broad Area of Fire Insurance (Comprehensive)
In special types of policies, the area of fire insurance is expanded in two ways-
- By covering many of the excluded perils of the general policy and many other specific perils, and (b) by covering many indirect losses and consequential losses. (a) By covering specific risks, insurance companies now provide protection to the insured against a number of risks which are outside the scope of the general policy. This is called “Special Perils Insurance”. In the special calamity policy, almost all the excluded risks of the general policy are insured, such as self-combustion, explosion, underground fire, earthquake, storm, riot etc. can also be closed.
- In an ordinary policy only direct losses can be indemnified. But many types of indirect losses also occur due to the destruction of the insured subject and these can be insured under special policies. Such losses are called “consequential losses”. For example, due to a fire in a factory, only the factories are not harmed, its consequential losses can be of the following types- (a) Due to non-receipt of net profit due to stoppage of factory work due to fire Loss, (b) Loss of rent, tax, interest on loan, salary of permanent employees and other fixed expenses even when work is stopped, (c) Rent of temporary house till the factory is rebuilt, on rent Loss due to taken machine etc. Fire insurance can also be taken for all these consequential losses.
Web Stories of insurance
Incidents of fire are certainly unpredictable and when such incidents do occur, they create a lot of destruction, causing a lot of loss of life and property. In such a situation, loss cannot be avoided, but to reduce the financial loss due to this, you can buy a fire insurance policy.
Frequently Asked Questions
Is fire insurance a part of property insurance? – Is Fire Insurance Property Part Of Insurance?
Yes, as a part of the property insurance policy offers protection against damages and loss due to fire.
What should be the eligibility for Fire Insurance?- What should be the eligibility for Fire Insurance?
Any person who owns a property or has taken a property on rent can buy fire insurance
Is it mandatory to file an FIR for a fire insurance claim? – Is FIR to Fire Insurance Claim Essential?
No, FIR is necessary in case of cable theft