Page 224 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

liability under the policy open. For e.g, the following
actions taken by the insurers is without prejudice, to their
right to deny liability if they are legally entitled to do so -
(i) Issuance of a claim form.
(ii) Receipt of documents relative to cause of loss or

amount of loss.
(iii) Conducting survey and investigation to determine

the cause of loss or amount of loss etc.

Taking such actions however, does not mean the
admission of liability. Documents which are marked '
without prejudice' cannot be produced in court of law
as evidence without the consent of the insurer.

f. Rules of interpretation of policies - Whenever there
is a dispute relating to the meaning of the words used
in the policy, the courts refer to the following rules
which are known as legal language, as rules of
construction.

The most important rule is : the intention of the parties
to the contract must prevail, and the intention is to be
looked for in the policy itself, read as a whole.

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