A loss may be either Total or Partial. Total loss may be subdivided into two classes: (i)Actual Total Loss, and (ii) Constructive Total Loss. The case of partial loss arises when the subject-matter of the insurance is partially lost. Partial loss is also of two classes: (i)Particular Average, and (ii) General Average.
Losses
Kinds Of
Losses:
A loss may be either Total or
Partial. Total loss may be subdivided into two classes: (i)Actual Total Loss,
and (ii) Constructive Total Loss. The case of partial loss arises when the
subject-matter of the insurance is partially lost. Partial loss is also of two
classes: (i)Particular Average, and (ii) General Average.
Fire
Insurance
A fire insurance is a contract to
indemnify the insured for destruction of or damage to property caused by fire.
Average
Clause:
It is becoming very common in
policies of fire insurance to insert a condition called the average clause, by
which the insured is called upon to bear a portion of the loss himself. This
condition is called the pro rata condition of average. Insurable interest; the insured must have insurable interest in the subject-matter both at the
time of effecting the policy and at the time of the loss.
The
Risk:
The risk in fire policy commences
from the moment the cover note, or the deposit receipt, or the interim
protection is issued and continues for the term covered by the contract of
insurance.
What Is
Fire:
The word fire as used in the
expression “loss by fire” is to be construed in its popular and literal sense,
and means a fire which has broken bounds.
Assignment:
In English law policy of fire
insurance can be assigned only with the consent of the insurer.
Valued Policy:
n the “valued policy” the insured can recover a
fixed amount, agreed at the issue of the policy without the necessity for any
further proof of value at the time of the fire.
Re-Instatement Or
Replacement Policy:
A clause is inserted in the
policy under which the insured can recover not the value of buildings or plant
as depreciated, but the cost of replacement of the property destroyed by new
property of the same kind, or the insurers may themselves reinstate the
property instead of paying in cash.
Consequential Loss Policy:
The insured is indemnified for
the loss of profits which he sustains through interruption or cessation of his
business as a result of fire.
Tags : Business Environment and Law-Law Of Insurance
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