Losses covered under fire

insurance policy , perils and

exclusions

TANISHA
GOYAL
13D220
nd

Fire Insurance
Fire insurance cover the risk of fire.
The fire insurance does not protect
only losses fine but it also provide
protection for certain consequential
loss also. It covers the movable and
immovable assets against fire and
allied perils.
For example engineering machinery
Breakdown , loss of profit and

Causes of fire
1.Physical hazards:
It refers to the inherent risk of fire in the
property which may occur due to
inflammable nature, construction , artificial
lightning and heating , lack of extinguishing
apparatus use of the property .
2.Moral hazards :
The moral hazards depends upon the man
as physical hazards depends on the
property. The property may be set on fire
by the owner or by any person with his
willingness and lack of sense of duty may

Losses covered under fire

insurance perils
a) Fire :
Items which can be damage through fire :
1. Building
2. Fixture , fitting and furniture
3. Electrical installation in building
4. Goods( raw material , in- process , semi finished , packing
material .)
b) lightning:
Lightning due to cloud burst may damage the property and
same will be covered under fire insurance policy.
c) Explosion/ implosion:
Sudden change in temperature in any plant or machinery or
exposure to atmospheric pressure may result into loss.
d) Aircraft damage :

E)

Riots , strike and malicious damage (RSMD):

Any damage to the property due to public or strike by
employee or malicious damage (intentional damage )
by any person will be covered under this policy.
f) Storm, cyclone , typhoon, flood and Inundation:
The property damage due to any of these storm and
floods will also be covered under this policy . The
meaning of these perils lies in different intensity of
storms.
g) Impact damage:
Damage to the property due to impact by rail/ road
vehicle or animal by direct contact , but not belonging
to or owned by the insured or any occupier of the
premises.

Exclusions covered under fire

insurance
Earthquake is not covered under the fire policy but by
paying extra premium earthquake can be covered.
Deterioration of stock in cold storage premises due to
power failure may be covered by endorsement.
Expenses incurred on architect , surveyors and consulting
fees and debris removal following a loss by an insure peril
in excess of 3% and 1% of the claim amount respectively.

Loss or damage cause due to insured own vehicles

forklifts are also covered.
Loss or damage to precious stones , work of art , paper
money ,cheque and explosives however some of these
properties may be covered to special term and conditions.