Daily Archives: February 19, 2017

Archive of posts published in the specified Day

Feb
19

Fire Insurance Under Indian Insurance Law

A contract of Insurance comes into being when a person seeking insurance protection enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire and or lightening, explosion, etc. This is primarily a contract and hence as is governed by the general law of contract. However, it has certain special features as insurance transactions, such as utmost faith, insurable interest, indemnity, subrogation and contribution, etc. these principles are common in all insurance contracts and are governed by special principles of law.

FIRE INSURANCE:

According to S. 2(6A), “fire insurance business” means the business of effecting, otherwise than incidentally to some other class of insurance business, contracts of insurance against loss by or incidental to fire or other occurrence, customarily included among the risks insured against in fire insurance business.

According to Halsbury, it is a contract of insurance by which the insurer agrees for consideration to indemnify the assured up to a certain extent and subject to certain terms and conditions against loss or damage by fire, which may happen to the property of the assured during a specific period.

Thus, fire insurance is a contract whereby the person, seeking insurance protection, enters into a contract with the insurer to indemnify him against loss of property by or incidental to fire or lightning, explosion etc. This policy is designed to insure one’s property and other items from loss occurring due to complete or partial damage by fire.

In its strict sense, a fire insurance contract is one:

1. Whose principle object is insurance against loss or damage occasioned by fire.

2. The extent of insurer’s liability being limited by the sum assured and not necessarily by the extent of loss or damage sustained by the insured: and

3. The insurer having no interest in the safety or destruction of the insured property apart from the liability undertaken under the contract.

LAW GOVERNING FIRE INSURANCE

There is no statutory enactment governing fire insurance, as in the case of marine insurance which is regulated by the Indian Marine Insurance Act, 1963. the Indian Insurance Act, 1938 mainly dealt with regulation of insurance business as such and not with any general or special principles of the law relating fire of other insurance contracts. So also the General Insurance Business (Nationalization) Act, 1872. in the absence of any legislative enactment on the subject , the courts in India have in dealing with the topic of fire insurance have relied so far on judicial decisions of Courts and opinions of English Jurists.

In determining the value of property damaged or destroyed by fire for the purpose of indemnity under a policy of fire insurance, it was the value of the property to the insured, which was to be measured. Prima facie that value was measured by reference of the market value of the property before and after the loss. However such method of assessment was not applicable in cases where the market value did not represent the …

Feb
19

Your Boat Insurance – Key Considerations

Sailing off into the distant blue, has the favorable effect of blowing away your life’s strains and cares with the blowing wind. Yet, before you voyage off in your attractive boat, take five and think about the merits of these questions. Do you have marine or boat insurance in place? Even when the response that that is ‘Yes’ at that point are you confident your insurance essentials are being fulfilled?

Marine insurance groups crafts according to a kind of dimensions. "Boats" are described as measuring anywhere between 16 feet and 25 feet 11 inches in length. Under that size then you are catalogued as small boat namely dinghies, personal watercraft and so forth. If your boat is 26 feet and above in size then you may most likely need expert insurance. Right now let’s check out some of the ins and outs as applied to regular boat insurance policies.

Physical damage insurance coverage

The insurance company reimburses you for the replacement or recondition of your boat, resulting from the following conditions: boating mishap, vandalism, fire, burglary, lightning, hurricanes or tornadoes. Incorporated in this policy are the watercraft itself, its power train or outboard motor and your trailer. Normally the following items are omitted from the dinghy insurance coverage, as they are not thought of as being a part of your boat’s operations: clothes, video or camera equipment, precious jewelry or fashion adornments, cell phones, beverages and food items, diving gear and portable electronics such as TV set, hi-fi equipment or laptops. You may discover they are included on your normal house insurance coverage or you may ask for separate insurance coverage for some of these.

Tip: I know it’s a pain but – always study the fine print at the bottom. Then you will realize what restrictions have been placed on your protection. Can you boat be kept at your home? Otherwise, should the boat be at your vacation place? Where does the protection start and end on the waters you can make use of? A few policies specifically list the assumptions and restrict the use of your craft.

Individual Liability Coverage

We hope you will never ever need to find out how important this coverage is. Typical marine boat insurance cover here ranges upwards from $ 3 million and may compensate you when there’s a collision and your boat is held responsible for harming another property, boat or injury.

Uninsured Boat Protection

This is known as the marine insurance equivalent to the road vehicle’s uninsured motorist insurance coverage. For instance, in the circumstance that the proprietor of a boat who damages yours has run out insurance coverage or worse yet, does not have the money, your boat’s repairs will certainly nonetheless be paid for.

Passenger Health Insurance coverage

This insurance coverage will pay for the medical expenses sustained by any people carried on your boat. You will definitely discover that generally there is one more provision on your policy regulating the quantity of individuals who can be aboard at …