Dr.

Ram Manohar Lohia National Law University

Subject:- Banking and Insurance Law

Synopsis On: - Principles and Practices of Fire Insurance in India

Submitted By:-Shubhangi Agarwal

B.A. LL.B. (6th Semester)

Enrollment No.-150101174

Submitted To: - Dr. Aparna Singh

Assistant Professor (Law)

Dr. Ram Manohar Lohia National Law University

 Research Methodology

The research methodology used by the researcher in this project will be doctrinal under which
various primary and secondary sources would be used to serve the purpose of the project. Hence
I will adopt the methods of analytical study to undergo the research for the project.

Scope

The project would study the principles of fire insurance. It would also delve into the study of the
procedure and scope of Fire insurance with special emphasis on India and what to do in case of a
claim under the fire insurance policy.

Introduction

Fire insurance is an agreement between two parties, i.e., insurer and insured, whereby insurer
undertakes to indemnify the loss suffered by the insured in consideration for his (insured) paying
of certain sum called ‘Premium’. Fire insurance was given birth after the ‘Great Fire’ of London
in 1956, which destroyed 13,000 houses in four days. It is a contract to indemnify the loss
suffered by the insured. This contract does not help in controlling or preventing fire but it is a
promise to compensate the loss.

The term ‘fire’ must satisfy two conditions:

(a) There must be actual fire or ignition;

(b) The fire should be accidental.

The property must be damaged or burnt by fire. If the property is damaged by heat or smoke
without ignition it will not be covered under the word ‘fire’.

Whenever a person or a business house wants to get its property insured, a proposal form is duly
filled. The insured should give correct answers to all the questions in the form. Generally, a fire
insurance policy is issued for one year but it may be periodically reviewed. The insured must
have insurable, interest in the property to be insured both at the time of taking up of the policy
and at the time of occurrence of the loss. If the insurable interest passes on to another person, the
insurance coverage ends unless otherwise the underwriter (insurance company) agrees to
continue it.
Fire insurance has three important principles:

1. Utmost Good Faith.

2. Insurable interest in property.

3. Principle of indemnity.

Tentative Chapterisation

1. Introduction
2. Fire and Special Peril Policy
3. Fire Hazards and Fire Prevention
4. Documents
5. Claims Legal Aspects
6. Conclusion

Bibliography

Website

1. http://www.yourarticlelibrary.com/insurance/fire-insurance-meaning-procedure-and-
principles-of-fire-insurance/42112
2. http://niilmuniversity.in/coursepack/Insurance/Principles_&_Practices_of_Fire_Insurance
.pdf
3. https://securenow.in/insuropedia/important-characteristics-fire-insurance-every-insured-
take-care

Books

1. Lester W. Zartman, Fire Insurance, William S. Hein & Company

2. B.N. Singh’s New Insurance Law