Fire and Allied Perils
This provides cover for loss or damage to property, caused by fire or lightning.It is necessary to understand the exact meaning of the word ‘fire’ as used in insurance parlance. A ‘fire’ as covered under a Fire Policy, is said to have occurred when the following conditions are satisfied:
- There is actual ignition of property.
- There must be something on fire which ought not to have been on fire.
- The fire must have occurred under accidental circumstances, so far as the insured is concerned.
Once a ‘fire’ as meant by the policy has occurred, certain other types of losses automatically come within the scope of the Fire Policy:
- Damage during or immediately following a fire caused by smoke, scorching, falling walls.
- Damage caused by the fire brigades in the discharge of their duties.
- Damage to property incurred by exposure to weather caused as a result of removal of property from a burning building in an effort to mitigate the loss.
Exclusions in Fire Policies
The standard Fire Insurance Policy does not cover:
- Loss or damage to property occasioned by its own fermentation, natural heating or spontaneous combustion or by its undergoing any heating or drying process.
- Loss by theft during or after the occurrence of a fire.
- Loss or damage occasioned by or through or in consequence of:
- The burning of property by order of any public authority
- Subterranean Fire
- Loss or damage to any electrical machinery, apparatus, fixtures and fittings (includes electrical fans, electrical household or domestic appliances, etc) or to any of the electrical installations, arising from or occasioned by over running, excessive pressure, short-circuiting, self-heating, arching, or leakage of electricity from whatever cause (lightening included).
- Unless or otherwise expressly stated in the policy loss or damage to:
- Goods held in trust or on commission
- Bullion or unset precious stones
- Manuscript, plans, drawings or designs, patterns, models or moulds.
- Securities, obligations, or documents of any kind, stamps, coined or paper money, cheques books of account or other business books.
- Any loss or damage occasioned by or through or in consequence of the explosion, except loss or damage by explosion of gas used for illuminating or domestic purposes in a building in which gas is not generated and does not form part of any gas works, will be deemed to be loss by fire within the meaning of the policy.
- Any loss or damage occasioned by or through or in consequence of the burning, whether accidental or otherwise, of forests, bush, prairie, pampas or jungle, and the clearing of land by fire.
- Building insured becoming unoccupied and remaining so for a period of more than 30 days.
Extensions to Fire Policy
Some of the above exclusions can be covered by payment of additional premium. These are:
- Riot And Strike
Subject to special conditions given in the company’s endorsements fire & allied perils cover can be extended to include loss of or damage to the property insured by fire or otherwise directly caused by explosion, but excluding loss and damage to boilers, economizers, or other vessels, machinery or apparatus in which pressure is used or their contents resulting from their explosion.
- Special Perils:
Subject to the special conditions contained in the company’s endorsements, loss or damage due to the following causes can also be obtained: hail, snow, wind, hurricane, cyclone, tornado, typhoon, rain, flood, overflowing of gutters, bursting of water tanks, subterranean fire.
- Spontaneous Combustion
Damage or destruction by fire only to the insureds interest caused by its own spontaneous fermentation, heating or combustion can be given as an extension to the policy.
- Bush Fire
The policy can be extended to cover the loss or damage to the property occasioned by or through or in consequence of the burning of forests, bush, prairies, pampas or jungle and the clearing of lands by fire (except where such clearing is done by or on behalf of the insured).
- Earthquake fire and shock
This policy covers machinery breakdown arising from unforeseen and sudden physical loss
Provides indemnity against loss or damage to property following forcible or violent entry or exit from the insured’s premises.
Loss of Profit Following Fire
This cover provides financial compensation when there is interruption of business operations