Note it includes all those properties which are on land and do not cover those which are in transit. Functions of fire insurance.
Fire Insurance
A fire insurance is an agreement between two parties ie insurer and insured whereby insurer undertakes to indemnify the loss suffered by the insured in consideration for his insured paying of certain sum called premium.
Nature and scope of fire insurance. The premium is also pre decided and the insurer compensates for the loss up to the insured amount only. Fire insurance by sandeep mishra to prof hema shirodkar slideshare uses cookies to improve functionality and performance and to provide you with relevant advertising. A fire insurance is a contract between a policyholder and the insurance company in which the insurer agrees to compensate the insured in case of loss or damage happens to a particular property due to fire.
It is not the function of fire insurance to replace the economic loss termed the fire waste. If you continue browsing the site you agree to the use of cookies on this website. Fire insurance is property insurance that covers damage and losses caused by fire.
The object of fire insurance is to indemnify the insured against accidental loss by fire. If you are into commercial activities there are various properties which you can cover under a fire insurance policy. Scope for fire insurance a contract of fire insurance is a contract whereby the insurer agrees in consideration of a sum of money called premium to compensate another person known as the insured for any loss or damage to the insured property.
The scope of a fire insurance policy includes both moveable and immoveable properties. The function of fire insurance is to make good the financial loss suffered as a result of the fire. Fire insurance is a gear to reimburse for the loss producing upon devastation by blaze.
The purchase of fire insurance in addition to homeowners or property insurance helps to cover the cost of replacement repair or reconstruction of property above the limit set by the property insurance policy. So the blaze insurance company moves the problem of fireplace deficiency from their genuine victims over to any or all the constituents of the society.
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