Fire insurance provides protection for the estimated value of the physical house.

However, there are a number of exclusions to the same, for example medical bills, loss of human life and pets, loss of personal belongings, Structures outside the property (including garages and gazebos), damage to the landscape and expenses for accommodation for the time being. These things can be covered under a package of extended property insurance. EX: Construction of building, type of occupancy, nature of good stored etc.

Specific Policy:
The insurer is liable to pay a set amount lesser than the property s real value. In this policy, the property s actual value is not considered to determine the indemnity. The average clause, which requires the insured to bear the loss to some extent, does not play a role in this policy. In case the insurer inserts the clause, the policy will be known as an average policy.

Comprehensive policy:
This all-in-one policy indemnifies for loss arising out of fire, burglary, theft and third party risks. The policyholder may also get paid for the loss of profits incurred due to fire till the time the business remains shut. Valued policy: This policy is a departure from the standard contract of indemnity. The amount of indemnity is fixed and the actual loss is not taken into consideration

Floating policy: This policy is subject to the average clause . The extent of coverage expands to different properties belonging to the policyholder under the same contract and one premium. The policy may also provide protection to goods kept at two different stores. Replacement or Re-instatement policy: This policy is subject to the re-instatement clause, which requires the insurance company to pay for replacing the damaged property So, instead of giving out cash, the insurer can re-instate the property as an alternative option

Why does one need Fire Insurance?

Fire insurance is important because a disaster can occur at any time. There could be many factors behind a fire, for example arson, natural elements, faulty wiring, etc. Some facts that stress the importance of fire insurance include: Fire contributes to the maximum number of deaths occurring in America due to natural disasters. Eight out of ten fire deaths take place at home. A residential fire takes place after every 77 seconds. The major reason for a residential fire is unattended cooking

Kinds of fire insurance policies

Valued policy: Under this policy, the value of the property insured is agreed upon at the time of taking up the policy. The insurance companies agrees to pay a pre-determined price if the property is damaged. valued policies are generally issued for the policy whose value cannot be determined easily like paintings, works of arts, antique jewelery etc. Average policy: This type of policy contains an average clause. This implies that if the value of the property insured is more than the sum insured at the time of the fire, the insurance company will be liable to pay a rateable proportion of the loss. .

suppose, person insures his house against fire for Rs 10 lakh whereas the value of the house is Rs 15 lakh. The house is damaged by the fire and the loss suffered is Rs 6 lakh. He can claim only Rs. 4 lakh form the insurance company. Floating policy: This policy is taken to cover the risk of goods lying at different places the stocks of which are changing. The premium charged is generally the average of the total amount of premium he would have paid if he has taken the different policies. Such policies are very useful for the businessman whose stocks of good keep no changing.

Methods of taking fire insurance policies

Insurance agents: A person who want to insure his property against fire may do so through an insurance agent or directly through the insurance company. Generally, the policy is taken through an agent as his expert advice is available free of cost but one should be careful against fraudulent activities and must pay the amount only after seeing all the proper documents. Selection of the policy: Now, an appropriate policy must be chosen from the list of the policies described above which shall depend on your needs. Proposal form: Whenever a person wants to get a policy, he has to fill a prescribed form. Full detail regarding the policy must be stated in the form, location, contents and value of the property.

 Investigation of the property: On receipt of the proposal form, the insurance company sends a surveyor to evaluate the property. After examining the property, the surveyor submits his report to the insurance company. Fixation of the premium: The nature and amount of premium is fixed on the basis of value of the property and report of the surveyor. Payment of the premium: The insurance company informs the applicant that his form has been accepted. The insurance pays the premium and gets a cover note form the company. The risk covers starts from the date mentioned in the cover note or the day of payment of first premium.

I. Filling up Proposal Form: A person desiring of taking a fire insurance policy has to select and contact a fire insurance office. He will obtain a proposal form from the office and fill up the proposal form. While filling up the proposal form of principles of good faith must be observed and he has to fill up the form with utmost good faith. II. Associating Evidence of Responsibility: The insurer will ascertain that the proposer is a respectable person and is undertaking the policy in utmost good faith. This consideration should be viewed before accepting the proposal. Since the insurance policy covers a high degree of moral hazards, these considerations are to be kept in mind.

III. Survey of the Property: The proposed property to be insured is surveyed by an expert called the surveyor. The surveyor inspect the property and estimate the degree of risks involved in such property. On the basis of the surveyor's report the insurer accepts or rejects the policy. IV. Accepting Proposal and Issuing of cover note: After the receipt of surveyor's report, it is scrutinized to see whether risks is acceptable or not. When the insurer is satisfied with regard to the report of the surveyor, he accepts the proposal and gives intimation to the proposer accordingly. The rate of premium is decided and on acceptance of appropriate premiums a cover note is issued. A cover note is an interim policy till the final policy is issued. A cover note serves as an evidence of insurance when losses to property are caused before the issue of final policy but after the issue of cover note.

policy till the final policy is issued. A cover note serves as an evidence of insurance when losses to property are caused before the issue of final policy but after the issue of cover note. V. Issue of Final Policy: After the issue of cover note, policy document is prepared. It is duly stamped document which contains terms and conditions of the insurance. The policy serve as an evidence of insurance between the insured and the insurer.

Procedure for settlement of claims Notice of fire: As soon as the fire occurs, the insured must send a notice of loss in writing to the insurance company. If possible, he must submit the evidences of loss and the evidence he did everything to mitigate the loss. If deliberate arson is suspected, an FIR must be lodged with the police and a copy of FIR must be submitted along with the notice. Submission of claim: After receiving the notice of fire, the insurance company sends a claim form to the insured. The insured should carefully fill the form as the details given in the form can affect the amount of the claim. Any wrong information can result in the refusal of the claim.

 Inspection of the property: The insurance company may send an examiner or an inspector to examine the loss. The inspector makes an inspection and submits it to the company. Assessment of the loss: After getting the report, the insurance company appoints an agent or an assessor to determine the value of the loss that has to be compensated. Payment of the claim: The insurance company makes payment to the insured on the basis of the report of the assessor. It may also reject the claim on the following grounds: The claim is fraudulent. The loss was not covered by the fire. The loss occurred due to defect in the insured property not disclosed at the time of taking up the policy. The loss was not intentional. The insured has no insurable interest at the time of the loss.

Marine insurance is a contract of indemnity whereby the insurance company undertakes to indemnify the insured for the loss or damage to the cargo or ship or freight on account of marine insurance. Marine insurance is one of the oldest type of the insurance which plays a vital role in the foreign trade.
EXAMPLES: method

of packing, inherent vice etc.

Types of marine insurance policies

1. Time policy A time policy is taken for definite period of time, usually not exceeding 12 months say from January 1, 1981 to December 31, 1981. This policy is most suitable for hull insurance. 2. Voyage policy Where the subject matter is insured for a specific voyage, say from Karachi to Port Saeed it is named as voyage policy. 3. Mixed policy This policy is the combination of time and voyage policy. It, therefore, covers the risks for both particular voyage and for a stated period of time.

4. Floating policy Floating policy is taken for a relatively large sum by the regular suppliers of goods. It covers several shipments which are declared afterwards along with other particulars. This policy is most situated to exporter in order to avoid trouble of taking out a separate policy for every shipment. 5. Valued policy Under its terms the agreed value of the subject matter of insurance is mentioned in the policy itself. In case of cargo this value means the cost of goods plus freight and shipping charges plus 10% to 15% margin for anticipated profit. The said value may be more than the actual value of goods. 6. Unvalued policy (Open Policy) Where the value of the subject matter of insurance is not declared but left to be ascertained and proved later it is called unvalued policy.

7. Builder's risk policy This policy is issued for more than one year. This covers the risk of damage to vessels from the time its construction commences until its trail is completed. 8. Blanket policy Under the condition of the blanket policy the maximum limit of the required amount of protection is estimated which is purchased in lump sum. The amount of premium is usually paid in advance. This policy describes the nature of goods insured, specific route, ports and places of the voyages and covers all the risk accordingly. 9. Port risk policy This policy covers all the risk of a vessel while it is standing at a port for particular period of time.

10. Wager policy Where the assured has no insurable interest in the subject matter of insurance that is know as wager policy. As this policy has no legal effect so it cannot be taken to a court of law. If underwrite refuses to accept the claim the policy holder cannot take any legal action against him. It is, therefore, also called as gambling policy. 11. Special hazards policy This policy covers special risks incident to piracy and war. It provides protection to insured under agreement against seizure, capture, detention and other war risks.

12. Composite policy This type of policy is purchased from more than one under writers. If there is no any motive of fraud then insured will be indemnified by each under writer separately in case of loss . 13. Block policy This policy is particularly purchased to gold diggers. It covers all the risks of damage to gold from the time of its recovery to its distinction. This types of policy has been introduced in Africa and is very popular in the mine fields of gold.

There are four types of marine insurance:Hull Insurance:covers the insurance of the vessel and its equipment i.e. furniture and fittings, machinery, tools, fuel, etc. It is effected generally by the owner of the ship. Cargo Insurance:includes the cargo or goods contained in the ship and the personal belongings of the crew and passengers.

Freight Insurance:provides protection against the loss of freight. In many cases, the owner of goods is bound to pay freight, under the terms of the contract, only when the goods are safely delivered at the port of destination. If the ship is lost on the way or the cargo is damaged or stolen, the shipping company loses the freight. Freight insurance is taken to guard against such risk. Liability Insurance:is one in which the insurer undertakes to indemnify against the loss which the insured may suffer on account of liability to a third party caused by collision of the ship and other similar hazards

Procedure for taking marine policy Enquiry: First of all, the company or the person will make an enquiry with the insurance company or its agent. In India, General Insurance Corporation offer marine insurance policies. Proposal form The person intending to take up a marine insurance policy will fill up a form available with the insurance company. The form should contain the following details: Name, address and business of the proposer. Name of the ship Full details of the cargo. Subject matter of the insurance. Amount or sum to be insured. Tye voyage or the period of the policy.

Cover note: The inured pays the amount of the premium and gets a cover note. It is issued as a preliminary step to the final preparation of the policy. Issue of the policy: The marine insurance company shall prepare and issue the policy to the insured. It contains the following particulars: Name of the insured or his agent. Subject matter of the insurance Marine risks insured against Amount insured and the premium Name, address and signature of underwriter. description ad period of voyage Name of the ship Name of the captain of the ship Special or additional clauses