Important Points for IC 57 - Fire and Consequential Loss Insurance Exam
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The subject matter of fire insurance may be any kind of moveable and immovable property having pecuniary value.
Fire Insurance contracts are governed by the general law of contract as embodied in the Indian Contract Act, 1872.
Fire insurance is governed by basic principles evolved under common law. These include: Utmost good faith, Principle of Indemnity, Insurable Interest, Proximate Cause, Contribution and Subrogation.
The sum insured is to be fixed by the insured.
The sum insured should represent the actual value of the property insured. If there is over-insurance, there is no benefit to the insured; if there is under-insurance, the claim amount will be proportionately reduced by applying pro-rata average.
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