The great fire of london in 1956 destroyed,000 houses in four days. Insurance pdf types of insurance, scope of insurance,classification hello friends welcome to. Insurance has evolved as a process of safeguarding the interest of people from loss and uncertainty. Define fire insurance and discuss the essentials of a. Define fire insurance and discuss the essentials of a valid fire insurance contract fire insurance. Insurance contracts are complex documents embodying years of industry tradition, case law, and general practices. In india, marine insurance act, 1963, regulates various aspects of marine insurance. Loss is payable only when it has been proximately caused by the insured peril. There is no guarantee that the business will not suffer an unexpected loss or damages. This chapter examines the legal environment of insurance contracts, including. A reinsurer may also reduce its assumed reinsurance risk by purchasing reinsurance coverage from other reinsurers, both. Definition of fire in insurance the fire insurance contract is defined as an. A brief history according to some authors, the greeks and romans introduced the origins of health and life insurance c.
Whether it is a fire, a car wreck, illness or a death, the financial consequences can be devastating if you are uninsured. Importance of insurance part 2 important for ugc net, upsc. The insurance company undertakes to make good the loss to the maximum value as agreed with the insured perils or risks. Any person or firm that has a financial interest in the property to be insured can avail this insurance. As long as you continue to pay your property taxes, you have every right to enjoy the use of that house for as.
Sometimes an organization or a person can have properties at various locations and this type of insurance is useful fore covering the risk generated by fire for these all properties. How insurance is transacted as a business and how the insurance market operates are also explained. This buzzle article will elaborate on the importance of fire insurance coverage, which provides financial support to individuals whose assets and belongings have been damaged by a fire. Bottomry was also practiced by the hindus in 600 bce and was well understood in ancient greece as early as the 4th century bce. Practice of general insurance notes 3 fire insurance diploma in insurance services in which within span of three days from 2 nd to 5th sept. Notes, exercises, videos, tests and things to remember on advantages and disadvantages of insurance. Property insurance fire and engineering marine insurance hull and cargo. Although, you may take great caution and use all the latest technology at your business premises, the possibility of accident cannot be entirely negated.
Aug 10, 2015 much of the debate on the history of human control of fire relates to the problem of the correct interpretation of possible fire indicators. It explains the concept of insurance and how it is used to cover risk. Examine the different types of insurance available. Therefore, buying a fire insurance for your business is essential as well as recommended. Insurance helps people have peace of mind when lifes unexpected events happen. However there are certain functions which apply to every kind of insurance including life insurance as well as general insurance that includes every type of insurance such as home, automobile. Fire insurance is a contract to indemnify the loss suffered by the insured. This study was carried out to determine the level of public awareness of insurance benefits and to identify. People need insurance because the unexpected does happen. So while we cannot protect our interests against all risks, we can opt for some insurance.
Aug 29, 20 fire insurance provides advantages to the enterprise in the following ways loss of life machines security medical expenses fire insurance provides the advantages for the homeowner in these ways property security any damage recovery electronic part security 16. Fire insurance features average clause insurable interest. Importance of fire insurance aratijadhav110 medium. Notes principles of general insurance principles of insurance 54 5. Presentation notes the importance of customer service skills. Fire produces heat and light but either o them alone is not fire. The express in the policy we have to construct is loss or damage occasioned by fire. Important characteristics of a fire insurance every insured. First, only buildings were insured and the first fire office was established by a builder nicholas barbon in. Here are the few points that explain the importance of fire insurance for your business.
Then again, a fire insurance policy is not only a personal contract, but a personal. Meaning, procedure and principles of fire insurance. It may be described as a social device to reduce or eliminate risk of loss to life and property. Just as an individual or company purchases an insurance policy froman insurer, an insurance company may purchase fairly comprehensive reinsurance from one or more reinsurers. A fire insurance policy involves an insurance company agreeing to pay a certain amount equivalent to the estimated loss caused by fire to the insured, within the time specified in the contract.
The following point shows the role and importance of insurance. Define fire insurance and discuss the essentials of a valid. Insurance historical development of insurance britannica. Oct 11, 2015 to prevent this, as a property owner you should have fire insurance. Under a bottomry contract, loans were granted to merchants. A fire insurance policy includes additional coverage against smoke or water damage due to a fire and is usually effective for one year. Fire insurance is called a comprehensive policy when it covers all other kinds of risks like riots, arson, loot, civil commotion, wars, strikes. Insurance companies provide 15 different fire insurance policies to cover the losses caused by fire for businesses. In case of fire insurance, insurable interest should exist at both times, i.
The marine insurance is governed by the national legal regimes. He did not mean to hit the identify key terms associated with insurance and risks. Types of fire insurance reference notes grade 12 management. Fire insurance definition, characteristics and policies. Insurance insurance historical development of insurance. Stiglitz stressed the importance of incentives, and argued that insurance contracts. The types of losses not covered by a fire insurance policy are. Insurance pdf types of insurance, scope of insurance,classification vehicle insurance on buses, cars, trucks, motorcycles, etc. Fire insurance business means the business of effecting, otherwise than incidentally to some other class of business, contracts of insurance against loss by or incidental to fire or other occurrence customarily included among the risks insured against in fire insurance policies. Apr 22, 2017 there are several insurances such as life insurance, fire insurance etc. Let us take a look at concepts of insurance and functions of an insurance company. But if lighting ignites something, the damage may be covered by a fire policy.
In this article ive tried to gather some basic information about some common insurance policies. Explain the purpose and importance of different types of insurance protection as a risk management strategy e. Fire insurance is a contract between the policy holder and insurance company, in which the insurance company undertakes the indemnity caused by a fire. Jun 05, 2011 define fire insurance and discuss the essentials of a valid fire insurance contract fire insurance. To appreciate the importance of insurance, discuss the benefits of insurance, insurance serves as a very useful means of spreading the effects of personal as well as business risks by way of loss or damage among many. The following persons have insurable interest in the fire insurance. Fire insurance provides the security for home, share, home furniture, enterprise buildings, etc. Insurance in some form is as old as historical society. Guilds in the middle ages served a similar purpose. And he can fire everybody in the company from the chairman on down, simply by spending his. Insurance is very important for businesses as they provide.
Fire insurance is a type of insurance policy losses onproperty that will protect the structure and the contents of your home from fire hazard. Aviation insurance is a highly specialized field designed to meet general aviation needs. In addition, fire insurance also provides financial help to replacelost possessions. A fire insurance contract for a coverage on property damage.
Fire insurance is a contract between the policy holder and insurance company, in which the insurance company undertakes the indemnity caused by a fire to the particular property in the particular period. Sometimes a cover note is issued immediately and the policy is sent later on. In this chapter, we cover various aspect of general insurance such as principles of utmost good faiths. In every office, the company keeps its important files, documents, and assets. The fire insurance contract is defined as an agreement, whereby one party in return for a consideration undertakes to indemnify the other party against financial loss which the latter may sustain because of certainly defined subjectmatter being damaged or destroyed by fire or other defined perils up to an agreed amount. Lecture notes insurance 1introduction need for insurance arises from uncertain income e. In case of nonlife insurance also the life is full of uncertainties. How important is fire insurance for your business securenow. A blanket policy is that fire insurance policy in which a single policy is used to insure properties at one or different locations against the risk of fire. Jun 25, 2019 lets say that you have a house that you own, free and clearwith no insurance. The entire amount of policy will become payable only when entire property is destroyed by fire. It is pertinent to note that the functions of any insurance remained confined to the terms and conditions of different type of insurance policies.
Insurance law is included in the syllabus of some law colleges. Notes on advantages and disadvantages of insurance grade. Read all about important characteristics of a fire insurance every insured should take care of at securenow insuropedia one of the leading sources for property insurance and other insurance related information. The role and importance of insurance, here, has been discussed in three phases. Insurance pdf types of insurance, scope of insurance. Some insurers write aviation insurance using their own contracts. Irrespective of its size, every business needs a fire insurance policy. What am i covered for under a fire insurance policy. The topic of the study is benefits of fire insurance and consequences of noncompliance.
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