Fire Insurance To Include Fires Caused Due To Smoke, Heat And Chemical Reactions

Fire insurance is a contract between the buyer and the insurer, in which the insurer undertakes to pay for damage or loss to the insurer’s property for a period of time. Fire insurance protects the property against unexpected dangers by evaluating the worth of assets based on their market value. Accidents caused by fire, lightning, implosion, or explosion, among other things, are covered by fire insurance. Also, man-made hazards such as pipes bursting or overflowing, water sprinkler leaks are covered. For a person to claim fire insurance there must be actual fire or ignition and such fire must be incidental. As a result, if the property is destroyed due to heat or smoke without there being an ignition. It will not be covered under the term ‘Fire insurance’. Most insurance companies provide no remedy for goods damaged due to excessive heat and smoke. Remedies are only provided for goods and property damaged due to the fire. This paper will further analyse the need to include damages caused due by smoke, Heat and Chemical reactions under fire insurance in India with a comparison with Fire insurance policies with other countries and attached case laws.