- It is a contract of indemnity. The assured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject-matter is insured.
- The assured and the insurer have to disclose everything which is in their knowledge and which will affect the contract of insurance.
- The assured must have insurable interest in the subject-matter both at the time of insurance and at the time of loss. The insurable interest must be capable of valuation in terms of money.
- The risk covered by a fire insurance contract is the loss resulting from fire or some cause which is the proximate cause of the loss.
- It is subject to the principles of subrogation and contribution
- It is contract from year to year. It comes to an end after the expiry of the year. It can, however, be renewed if the assured pays the premium during the days of grace.
What are the characteristics of Fire Insurance Contract?
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