When as individual or businessman wants to insure his property and to obtain fire insurance policy, the following procedure is to be followed : 1. Selection of company : The selection of insurance company is the first step in the procedure of obtaining fire insurance policy.
Therefore, a person who wants fire policy has to select the company or a broker with whom insurance is to be ejected. This selection is very important from the point of settlement of claims at the' time of loss. There are two types of fee insurance of organizations covering fire insurance Policies : (a) ban's once are those organizations which have combined for arranging liar premiums for different fire risks (b) Non- tariff ounces are insurance companies which function independently without joining any tariff companies. These companies offer policies at lower rate of premium to secure better business. At present fire insurance business is transacted only by the General Insurance Corporation of India and its for subsidiary companies.
2. proposal Farm : The second step is to 511 in a proposal form which furnishes the basis of the contract. This form contains the details like the name and address of the propose, nature of business, construction of building, amount of policy and other terms of the contact. All the details should be correctly filled up and none should be wrongly stated. Generally, the agent of the insurance company approaches the public and fills the form correctly. ne insured must observe the utmost good faith in disclosing the information and the insured must have insurable interest in the property to be insured. The proposer can take any types of policies, Le. specific lie, comprehensive policy, valued policy etc. On the basis of this PO information, the insurance company fmds out the risk and the amount of premium.
3. Evidence of Respectability : The insurance company before accepting the risk', ascertains the respectability of a proposer to know of insured, date of policy, amount of policy, description of property and other details and policy conditions. The policy contains proper a stamps and signatures of the owners concerned. The policy is a proof of insurance and can be presented in case of any disputes. The insured undertakes to pay the insured value of the property at the time of its loss by fee. The insurer's liability shall not exceed the amount need uP On in the policy. ' 9. Term of policy : The term of policy depends upon the requirements of an insured. Generally, lire policies are issued for a period of one year and therefore, they are also known as 'annual policies Short-terms policies may also be issued by the insurance company. Such policies are issued for a period shorter than oho year but its premium is higher than the Annual policies.
Q. 2 : act. different conditions of Fire Insurance Policy.
Ans.: Fire Insurance : Meaning : Fire insurance is one of the most popular form of insurance which has acquired an important position in all the industrial countries of the world. A contact of fire ' ' insurance is a contact whereby the insurer undertakes, in consideration of the premium paid, to make good any loss or damage caused by fire daring a specified period. Fire insurance is a device to compensate for The : loss inn destruction by fire. Thus, the fire insurer shifts the burden of fire losses from their actual victims over all the members of tulle society. It is a so-operative device to share the loss. It is the fact that the fire causes huge losses even year. The individual owner by taking lire insurance can prevent the lire waste to some extant. The insurer act: as a middleman between all the members of the society who are exposed to the fire one hand and the members who will be the actual victims of the fire losses on the other hand. The insurer a charges the premium from all the members and makes good the losses when they occur to any of them. Fire insurance is meant for indemnification of loss and not for prevention of loss. 'k Policy Condition : The policy conditions may be precedent to the contract conditions. The conditions must be fully complied with to make the insurer liable under the contract. The conniptions may be implied or expressed. We conditions which are set out in the policy are known as express conditions and they are printed on the policy. The implied conditions are not mentioned on the policy.
Therefore, a person who wants fire policy has to select the company or a broker with whom insurance is to be ejected. This selection is very important from the point of settlement of claims at the' time of loss. There are two types of fee insurance of organizations covering fire insurance Policies : (a) ban's once are those organizations which have combined for arranging liar premiums for different fire risks (b) Non- tariff ounces are insurance companies which function independently without joining any tariff companies. These companies offer policies at lower rate of premium to secure better business. At present fire insurance business is transacted only by the General Insurance Corporation of India and its for subsidiary companies.
2. proposal Farm : The second step is to 511 in a proposal form which furnishes the basis of the contract. This form contains the details like the name and address of the propose, nature of business, construction of building, amount of policy and other terms of the contact. All the details should be correctly filled up and none should be wrongly stated. Generally, the agent of the insurance company approaches the public and fills the form correctly. ne insured must observe the utmost good faith in disclosing the information and the insured must have insurable interest in the property to be insured. The proposer can take any types of policies, Le. specific lie, comprehensive policy, valued policy etc. On the basis of this PO information, the insurance company fmds out the risk and the amount of premium.
3. Evidence of Respectability : The insurance company before accepting the risk', ascertains the respectability of a proposer to know of insured, date of policy, amount of policy, description of property and other details and policy conditions. The policy contains proper a stamps and signatures of the owners concerned. The policy is a proof of insurance and can be presented in case of any disputes. The insured undertakes to pay the insured value of the property at the time of its loss by fee. The insurer's liability shall not exceed the amount need uP On in the policy. ' 9. Term of policy : The term of policy depends upon the requirements of an insured. Generally, lire policies are issued for a period of one year and therefore, they are also known as 'annual policies Short-terms policies may also be issued by the insurance company. Such policies are issued for a period shorter than oho year but its premium is higher than the Annual policies.
Q. 2 : act. different conditions of Fire Insurance Policy.
Ans.: Fire Insurance : Meaning : Fire insurance is one of the most popular form of insurance which has acquired an important position in all the industrial countries of the world. A contact of fire ' ' insurance is a contact whereby the insurer undertakes, in consideration of the premium paid, to make good any loss or damage caused by fire daring a specified period. Fire insurance is a device to compensate for The : loss inn destruction by fire. Thus, the fire insurer shifts the burden of fire losses from their actual victims over all the members of tulle society. It is a so-operative device to share the loss. It is the fact that the fire causes huge losses even year. The individual owner by taking lire insurance can prevent the lire waste to some extant. The insurer act: as a middleman between all the members of the society who are exposed to the fire one hand and the members who will be the actual victims of the fire losses on the other hand. The insurer a charges the premium from all the members and makes good the losses when they occur to any of them. Fire insurance is meant for indemnification of loss and not for prevention of loss. 'k Policy Condition : The policy conditions may be precedent to the contract conditions. The conditions must be fully complied with to make the insurer liable under the contract. The conniptions may be implied or expressed. We conditions which are set out in the policy are known as express conditions and they are printed on the policy. The implied conditions are not mentioned on the policy.
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