Page 5 - Fire Insurance Ebook IC 57

P. 5

The Insurance Times

Question & Answers

Q1. Define Fire insurance.

Ans. 'Fire Insurance Business' has been defined in Section
2 of the Insurance Act, 1938 as the business of
effecting, otherwise than incidentally to some other
class of insurance business, contract of insurance
against loss by or incidental to fire or other
occurrence customarily included among the risks
insured against in fire insurance policies.'

The subject matter of fire insurance may be any kind of
moveable and immoveable property having pecuniary
value, e.g, building ,furniture, fixtures and fittings,
household contents, plant, equipment and machinery,
stocks and merchandise in premises, or in the open.

Q2. What are the basic principles that govern
Fire insurance explain in brief.

Ans. The basic principles that govern Fire Insurance are:
(i) Utmost good faith - In insurance contracts, the
legal doctrine of utmost good faith applies. The

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