Page 26 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

fire policy.

Ans. There are fifteen conditions in the policy. They are:
(1) Voidable Condition: This condition provides that
the policy shall be void able in the event of
misrepresentation, mis-description or non-
disclosure of any material particulars. This
condition emphasizes the principle of utmost
good faith.

(2) Policy Ceasing Condition: All insurances under
the policy cease to affect after 7 days from the
date of fall of displacement of any building or part
thereof. However, if the displacement/fall occurs
due to an insured peril, and notice is given within
due time, the insurer may agree to continue the cover
subject to revised terms and conditions, or by
endorsements.

(3) This is known as the Material alteration
Condition. Under the following conditions, the
insurance cease to attach as regards to the property
affected. (a) Changes in trade or manufacture or
nature of occupation or other circumstances which
increase the risk of loss or damage by insured perils.

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