QS Study

Important Conditions of Fire Policies

The policy conditions may be precedent to the contract conditions subsequent to the contract and conditions precedent to liability. The conditions must be fully complied with to make the insurer liable under the contract. The conditions may be implied or express. Fire insurance policies are classified into various types based on insurance hazards, insured risk, business type, policy rules. Fire insurance policies typically contain general exclusions, such as war, nuclear risks, and similar perils.

Express condition: Conditions which are set out in the policy are known as express conditions which may be either of general nature and therefore printed on the policy or conditions specially designed with reference to a particular contract and are incorporated in the policy. The following conditions are express conditions in the fire insurance –

  • Misdescription,
  • Alteration,
  • Exclusions,
  • Fraud,
  • Claim,
  • Reinstatement,
  • Clause,
  • Insurer’s rights after a fire;
  • Subrogation,
  • Warranties,
  • Arbitration,
  • Purchase interest clause,
  • Loss procedures,
  • Contribution and average.

Implied condition: The implied conditions are not mentioned on the policies but are deemed to be present with reference to the policy. The following conditions are implied conditions in fire insurance –

  • The existence of property,
  • Insured property,
  • Insurable interest,
  • Good faith,
  • Indemnity.
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