Fire insurance is a policy where an insurer agrees to compensate for fire-related losses to specified property types, such as buildings and machinery, while excluding losses from specific causes like earthquakes or civil strife. Various policy types exist, including valued policies for hard-to-value items and floating policies for goods in multiple locations. Fire insurance benefits both enterprises and homeowners by offering security for property and recovery of damages.

2. What is Fire Insurance
A fire insurance policy involves an insurance company agreeing to pay a certain amount
equivalent to the estimated loss caused by fire to the insured, within the time specified in the
contract

3. Objective Covered Under Fire Insurance
 Building
 2) Electrical installation in buildings
 3) Machinery, Plant and equipment
 4) Goods ( raw materials, stocks in process, semi finished, finished etc ) in
factories
 5) Godowns, Goods in open
 6) Contents in dwellings (Household)
 7) Shops, Hotels etc.
 8) Furniture, fixture and fittings, pipelines located inside or outside the
compound etc.

4. Objective Not Covered Under Fire Insurance
1. Loss Due to fire cause by
• Earthquake
• Attach of foreign enemy
• Civil strife (war)
• Mutiny (Pub. Vs Govt.)
• Military rising
2. Loss caused by subterranean(Underground) fire
3. Loss caused by burning of property by order of any public authority

5. Following Document Are Required For
Fire claim
• Copy of the policy
• Survey report
• Claim form duly completed by the insured
• Police report (for riot claims) / Panchanama (fire loss)
• Fire brigade report
• Meteorological report (in case of flood, cyclone etc. claims)
• Photographs
• Detailed claim bill with necessary bills / voucher
• Copy of enquiry committee report on cause of loss if
enquiry is ordered by insured.

6. PRINCIPLES OF INSURANCE
• Utmost Good Faith
Insured must disclosed all relevant fact to the insurer
• Indemnity
Underwriter agree to indemnity the insured against losses to the extent of
amount insured
• Insurable interest
The insurable interest must exist both at the time of effecting the insurance
as well as at the time of the loss
• Subrogation
The insurer after paying compensation to insured , become entitled to claim
all the right of the insured against Third party
• Causa Proxima
Losses resulting from fire , margin or some other related cause, being the
proximate cause of losses are covered

7. Valued Policy
• It is usually taken where it is not easy to ascertain the value of the
property.
• In this policy the indemnity is a fixed amount agreed upon at the time of
signing the contract.
• The insured is benefited when the market value of the property declines ,
but suffer loss when the market value appreciates.
• The valued insurance policy is usually offered for such items like jewellery,
furs, or paintings, which value is difficult to estimate once they are
damaged or destroyed by fire.

8. Floating Policy
• It is taken to cover loss on goods, which are lying in different places and the
stock of which is almost continuously fluctuating.
• It is taken out for those goods which are frequently changing in a warehouse.
• Floating policies are suitable to those traders or products whose raw-materials or
merchandise are lying at different localities or godowns.
• For example:-Some of the goods of other trader are kept in one godown, and few
kept in another godown, some kept in the railway godown or some at the sea
port open.

9. Specific Policy
• A specific policy is a type of policy in which the property is insured for a specific
sum irrespective of its value.
• If there is loss, the stated amount will have to be paid to the policyholder.
• The actual value of the subject matter is not considered in this respect.
• For example: If a property is insured for taka 10000 though its actual value is taka
20000. In the event of loss to property, not more than taka 10000 can be
recovered.

10. Average Policy
• Where a property is insured for a sum which is less than its value, the policy contain
a clause that the insurer shall not be liable to pay the full loss but only that
proportion of the loss which the amount insured for, bears to the full value of the
property.
• For example: A value of the property is taka 1,00,000. It is insured for taka 60,000
(60% of the total value) The amount of loss is taka 60,000.The insurance company
will not pay taka 60,000 to the policyholder but will pay taka 36,000 (60% of taka
60,000).

11. Advantage Of Fire Insurance
• Fire insurance provides advantages to the enterprise in the following ways
• Loss of life
• Machines security
• Medical expenses
• Fire insurance provides the advantages for the homeowner in these ways
• Property security
• Any damage recovery
• Electronic part security