Fire insurance

Type :

Term papers

Pages :

27 pages

Format :

.doc

Published date :

04/13/2009

Category :

Economics & finance

Sub category :

Finance

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Summary :

Introduction
Meaning of insurance
1. Introduction to insurance
Introduction to fire insurance
1. Characteristics or nature of fire insurance
2. Meaning of fire
3. Definition of fire
4. The various loss caused by fire
Nature and use of fire insurance
1. Definitions and nature
2. Functions
3. Causes of fire
Scope of fire insurance
1. Ignition
Significance of fire insurance
1. As a source for minimizing losses
2. Decreases in probabilities of fire losses
3. Increase in production of fireproof materials
4. Decrease in social loss of fire
Procedure for fire insurance
1. Selection of insurer
2. Presentation of proposal in the prescribed form
3. Evidence of goodwill
4. Recommendations by agent
5. Survey of the subject matter
6. Report by surveyors
7. Issue of cover note
8. Issue of insurance policy
Rate fixation for fire insurance
1. System of rate fixation
Fire insurance contract
1. Key elements
Principles of fire insurance
1. Insurable interest
2. Principle of good faith
3. Exceptions
4. Principle of indemnity
5. Interpretation of indemnity
6. Consequences of indemnity
7. Doctrine of subrogation
8. Warranties
Types of fire insurance policies
1. Average policy
2. Valued policy
3. Specific policy
4. Reinstatement or replacement policy
5. Floating policy
6. Declaration policy
7. Adjustable policy
8. Ordinary or standard policy
Macro picture of general insurance
claim procedure under fire insurance
Conclusion
Reference

Abstract

What insurance companies do is to bear risk in return for a fee called premium. Thus, insurance companies are risk bearers. They accept or underwrite the risk in return for an insurance premium. Accordingly, the term insurance may be defined as a co-operative mechanism to spread the loss caused by a particular risk over a number of persons who are exposed to it and who agree to ensure themselves against that risk. Risk is, in fact, an uncertainty of a financial loss. Risk must not be confused with loss itself that is the unintentional decline in or disappearance of value arising from a contingency. The functions of insurance include providing certainty, protection, risk sharing, and prevention of loss and capital formation. Wherever there is uncertainty with respect to a probable loss there is risk. The insurance is also defined as a social apparatus to accumulate funds to meet the uncertain losses arising through a certain hazard to a person insured for such hazard.

insurance is a tool by which fatalities of a small number are compensated out of funds (premium payment) collected from plenteous. insurance companies pay back for financial losses arising out of occurrence of insured events, e.g. in personal accident policy death due to accident, in fire policy the insured events are fire and other allied perils like riot and strike, explosion, etc. Hence, insurance is safeguard against uncertainties. It provides financial recompense for losses suffered due to incident of unanticipated events, insured within policy of insurance.