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A very small percentage of vehicles, houses damaged that day

had opted for ‘flood’ cover in their policies – if they had one!

Thus, we can say that flood, storm, fire, theft, motor accident

and explosion are all perils.

Peril is defined as the cause of loss. Thus, if a house burns

because of a fire, the peril, or cause of, loss, is the fire. If a car

is totally destroyed in an accident with another motorist,

accident (collision) is the peril, or cause of loss.

There are mainly two types of perils related to a claim under an

Insurance policy

(1) Named / insured Perils: These are the perils specifically

mentioned in the policy as being insured e.g. Fire, lightening,

storm, flood etc. in the case of a fire policy. All other perils will

be excluded.

(2) Uninsured Perils: Those not mentioned in the policy at all

either in Insured or multi perils e.g. hail storm, gas leak etc. as

perils may not be mentioned in the policy. Insurers are liable to

pay claims arising out of losses caused by Insured Perils and not

those losses caused by Uninsured perils.

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