Page 209 - Fire Insurance Ebook IC 57

The Insurance Times

n The general rule may be stated as follows : A loss which is not
occasioned by the direct action of fire upon the property insured
is not a loss by "fire" within the meaning of the policy unless it is
proximately caused by fire.

Excepted perils

n The doctrine of proximate cause applies equally to exceptions. If
the loss is proximately caused by an excepted peril, there is no
liability under the policy.

n Thus, where a bomb dropped by an enemy aircraft sets fire to a
warehouse, the loss, though caused by fire, is proximately caused
by enemy action

Rights of insurers

n Impose duty on the insured to take all reasonable steps to
extinguish the fire, to diminish their loss and to save as much
as possible of the property insured.

n Insurers should be in a position to determine the cause of loss
and assess the extent of "loss.

n Make a complete investigation both into the details of the
claim and into the circumstances of the fire and this requires
taking over and keeping possession of the salvage as also the
premises until investigation is complete.

Under the condition 7 of the Fire Policy, the insurers, on
the happening of loss, have certain rights.

(i) to enter, take and keep possession of the premises where the loss
has occurred;

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