Page 206 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

Important Points to Remember

Processing and settlement of claims requires a sound
basic knowledge of :

a. the general law of contract
b. the special law of contract, that is, principles of common law, as

applicable to fire insurance, viz., indemnity, subrogation, utmost
good faith, etc.
c. the terms, exceptions and conditions of ;
i) the fire policy
ii) the extensions of this policy
iii) the special policies and clauses.

Duties of the insured

n It is the duty of the Insured to observe good faith not only at the
pre-insurance stage but also during the currency of the policy
and specially after the occurrence of a loss. The Insured has to
act "as if uninsured."

n Apart from notifying the fire brigade, the Insured must take
immediate steps to extinguish the fire to prevent it from spreading
and, wherever practicable to remove the property insured to a
place of safety, to protect the salvage etc. machines by the stock
in process. Thus, it is necessary to reduce the loss both on the
machinery and the stocks.

n Give notice of loss to insurers
n Submit proofs and particulars of loss.

n The insured is required to make a declaration on oath or in other

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