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PRESENTER

Miss Maidah Masood


Roll# 107
B-Com (hons)
Session: 2005-2009
Hailey College of Commerce,
University of the Punjab,
Lahore.
The help and support of our teacher we all now
able to picture the whole view of FIRE
INSURANCE. We all now confidently present
this report to our esteem professor SIR
KHURSHID. We hope that our efforts will
be fruitful enough to provide a handful
amount of knowledge and insight of the topic
that is FIRE INSURANCE.
DEFINATION
“Insurance against loss due to fire”

Insurance-a promise of reimbursement


in the case of loss; paid to people or
companies so concerned about hazards
that they have made prepayments to
an insurance company.
The Risks covered under FIRE INSURANCE
 Fire
 Lightening
 Explosion/Implosion
 Air craft Damage
 Riot, Strike, Malicious & Terrorism Damage
 Bush Fire
 Storm, Cyclone, Hurricane, Flood etc
 Impact Damage
 Subsidence & Landslide
 Bursting/ Overflowing of Tanks & Pipes
 Missile Testing Operation
History
 After the Great Fire in 1666 that
devastated one third of London,
reducing to ruins over 13,000
houses and 89 churches (including
St. Paul’s) it was realized that there
was a need for the provision of
compensation.
FIRE INSURANCE CLAIM PROCESS:

 Claims for auto accidents and health insurance are fairly


common. In fact, most of us have some experience with
these types of claims. However, not many of us can say the
same thing about fire insurance. While that’s certainly a good
thing, not knowing how the process works can leave
policyholders feeling a bit lost during an emotionally charged
time.
 Fire insurance expert provided some insight into the fire
insurance claims process. “The first thing the consumer has
to do is give notice to the insurance company. Once that
notice is given, then the time requirements start coming into
play and they have to start an investigation within 15 days.
They have to accept or deny the claim within 40 days. They
need to explain all the coverages that are available to the
insured so that the insured has enough information to
intelligently guide itself during the claim process.”
Tips to Make the Fire Insurance
Claims Process Work Smoothly
 Put everything in writing & keep a copy
for yourself.
 Cooperate with the insurance company.
 Manage your own claim.
 Doesn’t settle for less than you’re
entitled to.
 Learn how to recognize when your
insurer is acting in ‘bad faith’ .
Fire Classifications
 Class A fires - fires involving organic
solids like paper, wood etc, as well as
soft furnishings, fabric, textiles
 Class B fires - fires involving flammable
liquids like petrol, oil or paints
 Class C fires - fires involving flammable
gases
 Class F fires - fires involving cooking oil
and deep fat fryers
TYPES OF FIRE INSURANCE
1. Home
2. Business
How does Home Insurance affect my
family and me?
 Should a fire, burglary or unforeseen crisis
ever happen to your house, it would be
stressful for your family to deal with the
damage and loss.
 You can minimize the loss and financial burden
by insuring your home and its content against
such unpleasant events. This makes it easier
for you and your family to move past the
inconvenience and return to a normal life.
Doesn't Fire Insurance Cover
Everything?
 Most fire insurance only covers your houses
structure and the fixtures and fittings
provided by the insurance policy for damages
due to fire and other unforeseen events.
 It does not cover your renovations, furniture,
personal belongings, and areas outside your
unit or liability should your neighbors' unit be
affected by the disaster too.
Advantages of Fire Insurance
 Aids the planning process in businesses.
 Prevents firms & families from experiencing
the hardships.
 Allows businessmen to continue their
activities in a much more normal fashion
after a loss.
 Provides payments for the unexpected
losses.
 Allows smaller firms to pool their loss
exposures & thus to compete more
effectively with larger firms.
Barriers to Fire Insurance
There are following barriers to fire insurance:

 Moral hazard
 Legal frameworks
 Regulatory bodies and processes
 Competition
 Skills and training
 Market initiatives
 Bad faith
 Disputes over the amount of coverage
 Disputes about the extent of coverage available
 Improper or wrongful claim denials
 Adverse selection
 Fire protection expensive
Conclusion
After knowing the brief history, types, perils associated,
advantages, barriers and precautions of fire insurance
we conclude that:

There is no way to face the risks of fire or to completely


eliminate the factors of fire but we can be saved from
the damages associated from fire through insurance.
Fire insurance is a key to cover losses caused by fire.
It cannot bring back your dear ones but try to
overcome or to fill the spaces in the life of the heirs.