Insurance contracts are created when a person seeking insurance coverage enters into an agreement with an Auto Insurance Quotes. to cover damage to property caused by fire, lightning, or explosion. It is basically an agreement, and therefore in accordance with the law of general agreement. However, it has some features as an insurance company such as absolute trust, insured interest, charges, offers, and premiums. These rules apply to all insurance policies and follow some legal rules.
Fire Insurance:
Under section 2 (6A), "fire insurance activity" is the insurance for the damage caused by fire or related damage, or in addition to any other type of insurance activity in general. This means an activity that affects the event. This includes risks guaranteed by commercial fire insurance.
According to Halsbury, this is insurance and the insurance company will consider paying the insured some compensation for the damage or loss caused by the fire to the insured's property over a specified period. And agree to certain terms. Therefore, fire insurance is an agreement in which a person receiving insurance coverage enters into an agreement with the insurance company to cover the loss of property due to fire, electricity, explosion, etc. The purpose of this policy is to guarantee an individual's property. Other cases of damage caused by fire, total or partial damage.
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In a narrow sense, fire insurance is:
1. The main purpose is insurance against fire damage or loss.
2. The liability of the insurance company is limited to the extent of the insured, not necessarily the loss to the insured.
3. The insurance company is not interested in securing or destroying the insured's property other than the obligation under the contract.
Fire Insurance Act
Other legal rules related to fire insurance contracts. The same is true of the Non-Life Insurance (Nationalization) Act of 1872. Due to the lack of legislation in the area, Indian courts dealing with fire insurance coverage have traditionally relied on the courts and their decisions. British meaning. Lawyer.
For the purpose of compensation under fire insurance, in order to determine the value of an item damaged or destroyed by fire, it is necessary for the insured to measure the value of the item. The initial price is measured by the market value of the asset before and after the loss. However, such an assessment method does not apply if the market value for the insured does not represent real estate value, such as when the insured uses it as a home or runs a business. In such cases, the target of compensation is the cost of recovery. Luke v. New Zealand Insurance Company Limited [1] Therefore, if the insured's property is purchased and stored as an income-generating investment, the court has determined that the cost of recovery will be borne by the fire. Reasonable compensation for property damage.
Interest guarantee
Anyone who takes advantage of its existence and is attracted to a property to avoid destruction is considered an insured interest in the property. Such a person can guarantee fire-fighting properties.
Interest in things must be at the time of creation and at the time of loss. If it is not present at the beginning of the contract, you will not be able to take out insurance and if it is not present at the time of the loss, you will not have to bear the loss and no compensation will be required. So if he sells the insured thing and it is damaged by fire, he will not be harmed.
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