Page 61 - Fire Insurance Ebook IC 57

The Insurance Times

Question & Answers

Q1. What are the provisions regarding coverage
of a spontaneous combustion.

Ans The operative clause of the fire policy provides cover in
the respect of fire but excludes damage caused by
spontaneous combustion. In consideration of an additional
premium, insurance company agrees to extend the policy
to include loss or damage by fire, caused by spontaneous
combustion.

The expression 'by fire only' can never be omitted. Thus
the additional cover provided is only in respect of fire
damage as a result of spontaneous combustion.

The rates of premium vary according to category
of risk:
(i) Category I- Low or non-existent
(ii) Category II-Moderate
(iii) Category III-Variable &
(iv) Category IV-High.

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 74

Copyright@ The Insurance Times. 09883398055 / 09883380339