Page 36 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(ii) Limitation condition - According to this condition
the liability of the insurer ceases after the expiry of
12 months from the date of loss, unless the claim is
the subject of arbitration or pending action. If the
liability for any claim is disclaimed by the insurer ,
and the insured has not filed a suit within 12 months
from the date of disclaimer , the claim is deemed to
be abandoned and time barred. This condition
provides necessary protection to the insurer against
inordinate delay on the part of the insured as it is not
possible to keep the accounts open for an indefinite
period. In the absence of this condition the insured
could have reopened his claim after a long time
,when the insurer may have lost all the evidence
which led to its original rejection.

(iii) Right of entry condition - This condition gives the
company right to enter the premises where loss has
occurred , take possession of the property and deal with
it or sell such property.

The condition further provides that

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