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Question
CBSEENBS11004083
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Give the features of fire insurance.

Solution
 Features of fire insurance :

1. It is a contract of indemnity i.e. in the event of loss, the assured can recover from the | insurer the actual amount of loss or the maximum amount for which the subject matter is insured whichever is less.

2. It is a contract of utmost good faith.

3. The assured must have insurable interest in the subject matter of the contract both at the time of the contract and at the time of loss.

4. A contract of fire insurance covers the risk of loss resulting from fire or any cause which is proximate cause of such loss.

5. It is an yearly contract. It automatically lapses after the expiry of the year.

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