Page 6 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

insured has the duty to disclose all material facts,
which have a bearing on the insurance. A breach of
this duty may make the contract void or voidable.
The duty of disclosure continues throughout the
policy period.

The fire proposal form also includes a declaration
by the insured saying that the statements declared
by him are true, and that they can form the basis of
the insurance contract. This principles also expect
the insured to act as if he is uninsured all the time,
and takes care and safeguards his assets from the
perils. Following a loss, he is then expected to
salvage as much of the property as possible.

(ii) Insurable Interest - The requirement of
insurable interest gives legal validity to insurance
contracts and distinguishes them from wagers. It
may be defined as the legal right to insure, where
the right arises out of a pecuniary relationship
between the insured and the subject matter of
insurance.

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