Miss Maidah MasoodRoll# 107

B-Com (hons)Session: 2005-2009

Hailey College of Commerce,University of the Punjab,

Lahore.

PRESENTER

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. Home2. 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.