Fire insurance Insurance that is used to cover damage to a property caused by fire. Fire insurance is a specialized form of insurance beyond property insurance, and is designed to cover the cost of replacement, reconstruction or repair beyond what is covered by the property insurance policy. Policies cover damage to the building itself, and may also cover damage to nearby structures.

problem Dr. Borhan is the owner of a house in Gulshan, which is insured against fire for Tk. 75,00,000/-. One night due to electrical short-circuit fire broke out in that house and as such, there was total mis-management and confusions in putting out the fire. However, the fire service people finally could extinguish the fire. Afterwards, in claiming indemnity from the insurance company, Dr. Borhan not only asked for such damages that occurred as a result of the endeavor in putting out the fire, but also in-corporate losses occasioned by theft that took place on that night. The insurance company refused to pay for losses occasioned due to theft. Advice Dr. Borhan.

problem Dr. Chistie is the owner of an apartment in Dhanmandi, which is insured against fire for Tk. 60,00,000/-. One day, fire broke out in the apartment due to negligence of the maidservant. However, the fire service people finally extinguish the fire. Afterwards, in claiming indemnity from the insurance company, Dr. Chistie not only asked for such damages that occurred due to fire but also such damages that occasioned from the endeavor of putting out the fire in his house. Since the fire broke out due to the negligence of the maidservant the insurance company refused to pay for losses occasioned due to fire. - Advice Dr. A Chishtie

Fire insurance Fire means production of light and heat by burning. Fire must result from actual ignition and the resulting loss must be proximately caused by such ignition. Kinds of fire policy Specific policy/average policy Comprehensive policy/all in one/consequential loss policy. Valued policies Floating policies Replacement or re-instatement policy

Fire insurance Whether lighting is covered by fire policy ?

Distinction between Loss by fire and Damage occasioned by fire

Fire insurance Loss or damage by ignition of the articles consumed By ignition of that part of the premises where the articles are kept

Fire insurance Spoiling goods by water used to extinguish the fire Throwing articles of furniture out of the window. Every loss caused by the insured `s negligence Wrongly filing up the proposal form. Untrue statement in the proposal form. If policy provides that it shall be a condition precedent to the insured rights to recover, it is for the insurer to prove that the insured has not complied.

Assignment of fire policies With the consent of the insurer. Benefit of insurance does not pass with the sale or assignment of the property. Transfer of property act 1882-S-49 & 135

Transferee’s right under policy 49. Where immoveable property is transferred for consideration, and such property or any part thereof is at the date of the transfer insured against loss or damage by fire, the transferee, in case of such loss or damage, may, in the absence of a contract to the contrary, require any money which the transferor actually receives under the policy, or so much thereof as may be necessary, to be applied in reinstating the property.

Assignment of rights under policy of insurance against fire 135. Every assignee by endorsement or other writing, of a policy of insurance against fire, in whom the property in the subject insured shall be absolutely vested at the date of the assignment, shall have transferred and vested in him all rights of suit as if the contract contained in the policy had been made with himself.

AVERAGE CLAUSE IN FIRE POLICIES Insured bear a portion of loss himself. To check under-insurance: Inadequate insurance coverage by the holder of a policy. In the event of a claim, underinsurance may result in economic losses to the policy holder, since the claim would exceed the maximum amount that can be paid out by the insurance policy. While underinsurance may result in lower premiums paid by the policy holder, the loss arising from a claim may far exceed any marginal savings in insurance premiums.

PROBLEM The defendant insured her buildings against fire. During the currency of the policy she received a notice from a corporation about acquisition, but before anything was done under the notice,the buildings were destroyed by fire. Whether insured can claim from insurer or the party who sent notice of acquisition?

PROBLEM A barn was insured against fire and it was stated in the proposal that no fire is kept and no hazardous goods are deposited. The premises needed repair. A tar barrel was brought for the purpose and fire was ignited to heat it. The tar boiled over setting the premises on fire.

PROBLEM Where an agent of the insurer lived in the neighborhood of the factory which was insured against fire and knew everything about the factory. A fire broke out in the rice mill in the ground floor which causes the loss of the factory. Whether the insurer liable?

Fire insurance A shop was insured against loss from any cause whatsoever except fire. A fire broke out on the adjoining premises and spread to the plaintiff shop but no further. While the plaintiff was shifting his stock to safety, a mob attacked by the fire, tore down the shop shutters and broke the windows for the purpose of plunder. What is the proximate cause of damage?

Marine insurance A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the insured, in the manner and to the extent thereby agreed, against transit losses, that is to say losses incidental to transit. A contract of marine insurance may by its express terms or by usage of trade be extended so as to protect the insured against losses on inland waters or any land risk which may be incidental to any sea voyage.

Marine insurance

Cargo insurance Cargo insurance which provides insurance cover in respect of loss of or damage to goods during transit by rail, road, sea or air. Thus cargo insurance concerns the following : export and import shipments by ocean-going vessels of all types, coastal shipments by steamers, sailing vessels, mechanized boats, etc., shipments by inland vessels or country craft, and Consignments by rail, road, or air and articles sent by post.

Hull insurance Hull insurance which is concerned with the insurance of ships (hull, machinery, etc.). This is a highly technical subject.

classification Valued policy Unvalued policy Voyage policy Time policy Mixed policy Floating policy Wager policy

Various clauses in marine policy Lost or not lost At and from Touch and stay F.C.& S. Clause Barratry N.B. Clause