There are few points that means the nature of fire insurance:
- Written contract: Written contract means that fire insurance do the contract between insured and insurer.
- Two parties: In fire insurance the contract is made between two parties i.e. insured and insurer.
- Period of insurance:This type of insurance is done maximum for one year.
- Only protection element: Here in fire insurance only protection element is present and lacks investment elements.
- Use of word insurance:In fire insurance 'insurance ' word is used instead of 'assurance'. This means the compensation will be paid only if there is loss.
2 comments:
Thanks for defining the nature of fire insurance.
Malayan
Consequences of Indemnity in Fire Insurance
The consequences of the doctrine of indemnity are as below:
The insured may claim only the amount of the loss sustained.
In the case of partial damage, the insured may claim compensation only for the amount of damage done.
The insured must transfer to the insurer any rights which he may possess against a third party in respect of the loss.
If the insured have affected more than one policy, he is precluded from obtaining more than one complete indemnity.
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