Fire Insurance: Nature and scope of Fire Insurance — Basic Principles — Conditions & Warranties, Right & Duties of Parties, Claims and other

A fire breaks out at night in a godown in Bhiwandi and the stock of textiles is destroyed. By morning the owner has a burnt shell, a pile of bills, and one question: will the insurer pay, and how much? The insurer has questions too: was the stock worth what the owner says, did the owner tell us about the cloth dye stored next door, and who started the fire? Fire insurance is where the classic principles of insurance law, such as indemnity, good faith, subrogation and average, are all tested in a single claim.

In two minutes

Fire insurance indemnifies the insured for loss or damage by fire up to the sum insured; the claim depends on insurable interest, utmost good faith, proximate cause and compliance with the policy's conditions, and on payment the insurer is subrogated to the insured's rights against wrongdoers.

The rest of this chapter

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