Fire Lola

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Origin of Fire
Long, long ago, animals and trees talked with each other, but
there was no fire at that time.
Fox was most clever and he tried to think of a way to create fire for
the world. One day, he decided to visit the Geese, te-tl, whose cry he
wished to learn how to imitate. They promised to teach him if he would fly
with them. So they contrived a way to attach wings to Fox, but cautioned
him never to open his eyes while flying.
Whenever the Geese arose in flight, Fox also flew along with them
to practice their cry. On one such adventure, darkness descended
suddenly as they flew over the village of the fireflies, Kona. In midflight, the
glare from the flickering fireflies caused Fox to forget and he opened his
eyes instantly his wings collapsed! His fall was uncontrollable. He landed
within the walled area of the firefly village, where a fire constantly burned in
the centre.
Two kind fireflies came to see fallen Fox, who gave each one a
necklace of juniper berries. Fox hoped to persuade the two fireflies to tell
him where he could find a way over the wall to the outside. They led him to
a cedar tree, which they explained would bend down upon command and
catapult him over the wall if he so desired.
That evening, Fox found the spring where fireflies obtained their
water. There also, he discovered colored earth, which when mixed with
water made paint. He decided to give himself a coat of white. Upon
returning to the village, Fox suggested to the fireflies, "Let's have a festival
where we can dance and I will produce the music."
LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 1

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Fox pretended to tire from beating the drum. He gave it to some

fireflies who wanted to help make the music. Fox quickly thrust his tail into
the fire, lighting the bark, and exclaimed, "It is too warm here for me, I must
find a cooler place."
Fox finally tired and gave the burning bark to Hawk who carried it to
brown Crane. He flew far southward, scattering fire sparks everywhere.
This is how fire first spread over the earth.
Fireflies continued chasing Fox all the way to his burrow and
declared, "Forever after, Wily Fox, your punishment for stealing our fire will
be that you can never make use of it for yourself."
For the Apache nation, this too was the beginning of fire for them.
Soon they learned to use it for cooking their food and to keep themselves
warm in cold weather

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INTRODUCTION OF FIRE
Fire has been an important part of all cultures and religions, from

pre-history to modern day, and was vital to the development of civilization.
It has been regarded in many different fashions throughout history. Fire
occupies an important position in the history of the human race. Many
religious and communities accord the status of god to fire, and fire worship
is common in many parts of the words. The Hindus revere fire as the Vedic
god Agni. The Zoroastrians worship fire as their god.
According to Greek mythology, it was Prometheus who gave fire to

the human race. Richard Wrangham, an anthropologist, associates the
mythology of Prometheus to the beginning of the use of fire by the Homo
sapiens.
According to anthropological studies, the use of fire began in human

society nearly 3, 80,000 years ago at a site called Terra Amata. Terra
Amata is located on the southern coast of France near the city of Nice. The
site was discovered and first excavated by Henry D Lumley and is believed
to be a Homo erectus ritual and revelry site.
It is believed that ancient men, the Homo erectus, used to visit the
during the flowering seasons and would cook elephants, deer and
vegetables in fire and eat them.
In a broader sense, fire is defined as the state or process of

combustion in which substances combine chemically with oxygen from air
and usually give out bright light and heat.
For a fire to out, three primary factors are essential. There should be
fuel in any form, a source of ignition good enough to set off the process,

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and a natural or an artificial environment for forming the combustible

environment.
Fire and the other Greek classical elements were incorporated into

the Golden Dawn system despite being considered obsolete by modern
science. Philosophies are the elemental grade attributed to fire; this grade
is also attributed to the Qabalistic Sephirah Netzach and the planet
Venus. The elemental weapon of fire is the Wand or Dagger. Each of the
elements has several associated spiritual beings. The archangel of fire
is Michael, the angel is Aral, the ruler is Seraph, the king is Drin, and the
fire elementals (following Paracelsus) are called salamanders. Fire is
considered to be active; it is represented by the symbol for Leo, and it is
referred to the lower right point of the pentagram in the Supreme Invoking
Ritual of the Pentagram. Many of these associations have since spread
throughout the occult community.
In most Wiccan and Pagan traditions, fire is associated with:
 The South (North for Southern Hemisphere),
 The Summer
 The color red on the physical plane.

 The ashamed or ceremonial dagger. However this can also
correspond to air.
 In covens that use the sword, it is often associated with this element.
Other correspondences include blood, candles, the guitar, rubies and

incense. Fire represents energy, inspiration, passion and masculinity. It is
sometimes represented in writing by a red upwards triangle.

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In rituals, fire is represented in the forms of burning objects, love spells,

baking and lighting candles or fires.
The manifestations of the element are found in the sun, lightning, fire,

volcanoes and lava, and all forms of light. Cats of all types, especially the
lion and tiger, are also thought to personify the element of fire, as are all
predatory creatures, such as the fox. The astral creatures of fire, known
as elementals,arethe salamander, phoenix, drake/dragon and,occasionally,
the hawk (although most associate this animal with air, instead).Fire's place
on the pentagram is the lower right point.
Fire belongs to the suit of Wands in occult or divinatory tarot, although

some Wiccans associate it with the suit of Swords because the theme
(ritual knife) is often associated with fire. Fire is associated with warm
colors, like red, orange and yellow, but also colors like black.
Fire represents the creativity and passion that all intellectual and emotional
beings have. It is an active force that has the passion to create and
animate things. The element is also very rational and quick to "flare up" as
is the personality of many "fire-children."
Fire in many ancient cultures and myths has been known to purify the land
with the flames of destruction; however, it is also capable of the renewal of
life through the warmth and comfort of those very same flames.
The element of fire shows up in mythological stories all across the world,

often in stories related to the Sun.
In East Asia fire is represented by the Vermilion Bird, known as

in Chinese,Suzaku in Japanese and Jujak in Korean. Fire is represented in
the Aztec religion by a flint; to the Native Americans, a mouse; to

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the Hindu and Islamic faiths, a lightning bolt; to the Scythians, an axe, to

the Greeks, an apple-bough; and in Christian iconography, a lion.
Fire classification grouping
Based on its nature and nature and characteristics, fire is fire is grouped
into different categories. In India, based on the Indian standard code of
practice, fire is classified as below.
Group A: - Fires involving organic compounds that are generally solid in

nature and composition. The fire combustion is effectively controlled with
the use of water.
Group B: - Fires that occur in liquids or on solids that could convert

themselves into liquids of various densities.
Group C: - fires that involve natural gases or liquefied gases, wherein the
isolation of the primary material (that is the gas or the liquefied gas) is
necessary to bring the fire under control.
Group D: - fires involving combustible material like titanium, sodium, etc.
All other fires, irrespective of the material and medium, fall under any one
of the above four groups.
Characteristics traits of fire
Materials, particular liquids, become flame-sensitive at respective flash

points. A flash point is the barest point of temperature at which a liquid
evaporates and starts emitting fumes into the atmosphere. At this point, if
the fumes are accidentally of intentionally exposed to a source of ignition,
and then afire occur. Flammability of a substance is directly related to the
flash point of the material. It is for this reason that the flash point of the

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material stored considerably influence the evaluation of the fire hazard and
price determination for the insurance cover.
The lowest temperature at which a material gets ignited on its own is called
the auto-ignition temperature.
In the evaluation of fire hazard, the source of ignitions is of vital

consideration. The location of the sources of ignition in a storehouse in
important in evaluating the risk.
Apart from flames, fire may also take place by place by direct exposure to
heat and hot surface. Adequate care should be taken in storing materials
that are capable of slow oxidation. Such materials are called self- heating
or spontaneously combustible materials.
Shots circuits in electrical installations are the major sources of fire hazards
in multi-stories building. The fire at upkar cinema in New Delhi and the one
at LICs Chennai office a few years ago a few instances. Subject to the
prevalence of conducive condition, ever static electricity can become a
source of ignition, particularly in industries involving pneumatic operations,
grinding, etc.
Other common sources are mechanical sparks, sparks during the ignition
of a vehicle (this is common in many petrol station fires) and energy
released during chemical reactions.
In this context, it may be of interest to note that during 2000-01, the biggest
fire claim in India was Rs.3612 million due to settle Rs.561 million towards
major fire climes in India.

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Insurance obtained by owners of homes and commercial

properties to provide reimbursement in case of losses resulting from fire.
Such insurance is supplied in exchange for the payment of a premium.
The five types of insurers who write policies are stock companies, mutual
companies, reciprocal exchanges, Lloyd's organizations, and advance
premium cooperatives. Most of the fire insurance in the U.S. is
underwritten by stock companies. Some business firms, however, are self-
insurers; that is, they set aside funds to be used exclusively for
indemnifying losses resulting from fire.
Fire insurance had its origin in Germany, where an association by

the name Fuel Cases covering fire-related hazards in 1591. Fire insurance,
in its present form, started in England in 1667 after the Great Fire of
London in 1666. This fire ranged in London city for four days and was
spread over 436 acres. The fire destroyed 13200 house, 89 churches
(including the famous St. Paul’s Cathedral), the royal Exchange, the
customs house and many other landmarks of London. Surprisingly, only six
people perished in the flames, but hundreds died due to shock exposure to
the radiating heat. After the fire, many safety measures were initiated. One
of the mandatory requirements prescribed was that each quarter of the city
is to city to be provided with 800 leather buckets and 50 ladders as well as

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other fire-fighting equipment. Another enactment that each house had to

have buckets, and the occupants were required to participate in hand-to-
hand bucked brigades.
Shaker by the unparalleled tragedy and the vulnerability of his

own property, Nicholas Barbon (MD), a doctor turned builder in London
was the first person to specialize in fire insurance business. He promptly
opened an office in London ‘to insure buildings’ and in 1680, he established
the first partnership insurance company called ‘the first fire insurance
company, to insure building of brick and flame. Around the same time, the
corporation of city of London started issuing fire policies. But this move was
strong the same time, opposed by the first fire insurance company, the first
exclusive fire insurance company through that it could it would be
commercially savvy to change name of the company to ‘phoenix’. The
company closed down some time in 1712. In subsequent years, many new
fire insurance companies came up and all they concentrated only on
insuring building against fire; their premiums ewer substantially higher for
the buildings constructed with timber. The practice of issuing fire policies
covering buildings, including movables and personal possession, started
much later.

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Definition of fire insurance
 Insurance against loss due to fire.
 Insurance: - a promise of reimbursement in case of loss, paid to

people or companies so concerned about hazards that they have
made repayment to an insurance company.
The risk covered under fire insurance
 Fire
 Lighting
 Explosion/implosion
 Air craft damage
 Riot, strike, malicious, and terrorism damage
 Trash fire
 Storm, cyclone, malicious, hurricane, flood etc
 Impact damage
 Subsidence and landslide
 Bursting overflowing of tanks and pipes
 Missile testing operation

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BRIEF CASE STUDY OF FIRE INSURANCE
Property insurance provides protection against most risks

to property, such as fire, theft and some weather damage. This includes
specialized forms of insurance such as fire insurance, insurance,
earthquake, home insurance or boiler insurance. Property is insured in two
main ways - open perils and named perils. Open perils cover all the causes
of loss not specifically excluded in the policy. Common exclusions on open
peril policies include damage resulting from earthquakes, floods, nuclear
incidents, acts of terrorism and war. Named perils require the actual cause
of loss to be listed in the policy for insurance to be provided. The more
common named perils include such damage-causing events as fire,
lightning, explosion and theft.
Fire insurance coverage
There are three types of insurance coverage. Replacement cost

pays the cost of replacing your property regardless of depreciation or
appreciation. Extended replacement cost will pay over the coverage limit if
the costs for construction have increased. This generally will not exceed
20% of the limit. Actual Cash Value provides replacement minus
depreciation. When you obtain an insurance policy, the coverage limit
established is the maximum amount the insurance company will pay out in
case of loss of property.[ This amount will need to fluctuate if homes in your
neighborhood are rising; the amount needs to be in step with the actual

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value of your home. In case of a fire, household content replacement is

tabulated as a percentage of the value of the home. In case of high value
items, the insurance company may ask to specifically cover these items
separate from the other household contents. One last coverage option is to
have alternative living arrangements included in a policy ] If a fire leaves
your home uninhabitable, the policy can help pay for a hotel or other living
arrangements.
World Trade Center case
Following the terrorist attacks of 11 September 2001, a jury

deliberated insurance payouts for the destruction of the World Trade
Center. Leaseholder Larry A. Silverstein sought more than $7 billion dollars
in insurance money; he argued two attacks had occurred at the WTC. Its
insurers – including Chubb Corp. and Swiss Reinsurance Co. – claimed the
“coordinated” attack counted as a single event. In December 2004,
the federal jury decided in Silverstein’s favor. In May 2007, New York
Gov. Eliot Spitzer announced more than $4.5 billion would be made
available to rebuild the 16-acre WTC complex as part of a major insurance
claims settlement. Herbert M. Wachtell, Silverstein’s lawyer, also
represented tobacco giant Philip Morris in 1999, when the U.S. government
sued the industry for $20 billion for smoking-related deaths.
“If this is not the largest lawsuit of all time, it certainly ranks high,” Wachtell
later said of the settlement.
Florida Consumer Choice Act
On June 24, 2009, Fla. Gov. Charlie Crest vetoed the Consumer

Choice Act (H.B. 1171). The bill would have trumped state regulation, and

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allowed Florida's biggest insurance companies to establish their own rates.

State Farm Florida expressed its disappointment with Christ’s veto of the
bill the company said "would have given consumers more options in their
choice of a property insurer. It would have attracted more capital to the
property insurance market in Florida. State Farm had proposed a 47.1%
property insurance rate increase for Florida policyholders. As a result of
Christ’s move, State Farm plans to drop coverage for more than 700,000
homeowners by 2011.eldless, who has represented large insurance
carriers like Nationwide, remarked on State Farm's pullout from Florida to
an Orlando television news station:
"I think that homeowners are really going to have to look out for
themselves," Cordless said.
Five days following Christ’s veto of the Consumer Choice Act,

Cordless defended property insurance deregulation on WFLA's AM Tampa
Bay, when he pointed out, "If the blue-chip insurance companies wanted to
price themselves out of the market, then they'll go out of business."
“The governor says he’s protecting the consumers’ choice but, in

reality, he’s making it for them,” Corless added. “In a free market, all
companies would be available to property owners and if a homeowner
doesn’t like the price, he or she moves on. This veto limits those options
and ties the hands of the blue-chip companies.

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History of fire insurance
After the great fire of London in 1666. This fire ranged in London
city for four days and was spread over 436 acres. The fire destroyed
13200 house, 89 churches (including the famous St. Paul’s Cathedral), the
royal Exchange, the customs house and many other landmarks of London.
Surprisingly, only six people perished in the flames, but hundreds died due
to shock exposure to the radiating heat. It was realized that there was a
need for the provision of compensation. At the time the only form this took
was a collection at the local church. There are various views on when a
fire insurance company started, from as early as 1667, but it is generally
accepted that Dr. Nicholas Barbon, M.D., son of the eccentric member of
Cromwell’s Parliament, Praise-God Barebones, was the first to promote a
serious form of insurance protection in the name of The Fire Office, later to
be known as The Phoenix, which commenced underwriting fire insurance
in 1680 and ceased about 1712. There are no surviving examples of their
fire mark. However, we do know that policies exist, and their emblem is
that of a Phoenix rising from the flame. The first scientific system of
obtaining funds to compensate for fire loss was developed after the great
fire in London in 1666, which devastated some 13,000 buildings. In the
system inaugurated the following year by the London merchant Nicholas
Barbon (d. 1698), small sums of money were collected from many
individuals, and a fund was established for compensation of the losses
sustained by the few whose property subsequently was destroyed by fire.

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The first effective fire-insurance company established in the U.S. was the
Philadelphia Contributor ship for the Insurance of Houses from Loss by
Fire, which is still in operation. The standard fire-insurance policy in the
U.S. was adopted in New York State in 1943. It became the prototype of
such policies in most other states either through statute or through
regulation by state insurance departments. The resulting standardization
has helped reduce litigation on disputed claims by making the insurance
coverage more understandable to the policyholder and by simplifying
adjustment of losses.
Mindful that few streets were named and the buildings were not
numbered, some form of identification was necessary, and the birth of the
fire mark came about. The first examples were made of lead, and some
hundred years later followed by copper, tinned iron, zinc, brass and
ceramic. They bore the logo of the insurance company, in many cases in
the form of the county’s coat of arms. Greek mythology played an important
part in many designs, typically that of The Fire Office’s emblem.
India Insurance: History
The history of the Indian insurance sector dates back to 1818, when the
Oriental Life Insurance Company was formed in Kolkata. A new era began
in the India insurance sector, with the passing of the Life Insurance Act of
1912. The Indian Insurance Companies Act was passed in 1928. This act
empowered the government of India to gather necessary information about
the life insurance and non-life insurance organizations operating in the
Indian financial markets.

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The Triton Insurance Company Ltd formed in 1850 and was the first of its
kind in the general insurance sector in India. Established in 1907, Indian
Mercantile Insurance Limited was the first company to handle all forms of
India insurance.
Types of fire insurance
 Home fire insurance
 Business fire insurance
Home fire insurance
Home fire insurance provides protection in the event that fire

damages the property and belongings as most standard homeowner’s
policy cover these damages. This coverage is required by all mortgage
companies that lend money to homebuyers. If a homeowner has paid off a
house and has complete ownership, they might consider continuing the
house fire insurance through a homeowner’s policy with their original or a
new provider. Many different agencies offer this coverage through
homeowner's policies, and consumers and homeowners are encouraged to
investigate what their current policies do and do not cover.

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Generally, there are many things that homeowner's policies cover,

such as damage from fires and other natural disasters that can
unexpectedly strike at any time. Many homeowners with coverage are not
aware of everything that their house fire insurance covers. For example,
not only does home fire insurance cover any loss caused by fire, but this
will also cover a burglary and vandalism to the home. This type of plan
through a homeowner's policy will also include liability coverage in case a
person is harmed on the individual’s property or in the home.
Too often it is after disaster strikes and destroys property that

those who own a home look into coverage. Not knowing exactly what is
covered by house fire insurance, victims struggle to recall every item lost,
or spend hours attempting to put a price on the items that need to be
replaced. While it is good to know that the house and the contents are
covered by home fire insurance, it is also a good idea to make an inventory
list of all personal items and the value of each before a claim is necessary.
Being prepared ahead of time will make a devastating situation less
stressful.
Consumers and homeowners are encouraged to read their
insurance policies and completely understand what they cover. Besides
fires, other natural disasters can destroy a home, and homeowners should
know what is covered, what is not, and the replacement value of the house
and all personal belongings. Reading about house fire insurance is not a
pleasant activity, but disasters do happen and being prepared is being
wise. The Bible teaches people to turn to God in times of trouble and to see
situations from his perspective. Anyone that has been through a traumatic
event knows that struggling to get home fire insurance claims made can be
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a difficult task. It is in this time that a person should turn to the Lord and lay
their burdens at His feet, trusting in His plan. "And we know that all things
work together for good to them that love God, to them who are the called
according to his purpose."
Business fire insurance
A fire at a business can devastate a business. The structure may be

damaged beyond repair. Business revenues are disrupted as the business
cannot remain open. In the United States in 2006 there were 1.6 million
fires reported resulting in $11.3 billion in direct property loss. It is a risk that
must be insured against.
Most property insurance policies and business owner policies cover

fire losses. Most business property insurance policies are broad form
policies. These policies list a number of perils that are covered by the policy
and exclude perils that are not covered.

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However, fire insurance can be purchased as a specific peril policy

or the coverage increased by a specific endorsement. It is important for the
business owner to understand what is not covered under a traditional broad
form policy and ways to increase coverage. It is important to review what
appropriate considerations when reducing premiums are and what not
effective ways to save premiums are Insure for the Proper Valuation
many small business owners find that if they insure for an amount less than
what the business is worth, premiums are lower. This is true. However,
insurers require as a condition of the policy that the business is insured for
a value equal to the actual value of the business. If it is not, and a loss
occurs, a penalty is applied to the settlement amount. This penalty will
almost always exceed the value of any saved premium and will come at a
very bad time.
 Always insure for 100% of the business value.

 Have an independent evaluation of the business by an independent
appraiser each year and adjust coverage as necessary.
 Do not rely on property tax evaluations or guesses from your
insurance professional.
Actual Cash Value versus Replacement Cost
Most policies cover a fire loss with actual cash value or ACV instead
of replacement cost. Actual cash value pays the amount of the property
less depreciation. This can be devastating if your business relies upon high
value equipment that has a long useful life, but would be prohibitively
expensive to replace. As examples: coolers, refrigerators, tow lifts, aircraft
or anything that would be prohibitively expensive to buy new. Replacement

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coverage pays the amount to replace the property lost at whatever the
replacement cost is today. Replacement coverage carries higher premiums
and can be purchased as a rider or endorsement. Consider the following
when considering ACV vs. replacement coverage.
 Your business may be underinsured if it cannot replace critical

facilities and equipment at the depreciated value.
 Electronics such as computers frequently decline in real replacement
cost such that actual cash value may be a better option.
 Property valuations are frequent causes of conflict between insurers
and insured. You can avoid valuation problems by carrying
replacement coverage.
Create in Property Needs Separate Coverage:
Cash, valuable papers, certain types of inventory, some electronics,

jewelry, and other items will require separate coverage or will be excluded
from coverage. These are generally items that are impossible for the
insurer to confirm and are prone to fraud.
Business Interruption Insurance:
Fire insurance does not cover "downtime" for your business nor
does it cover temporary relocation. Your business needs business
interruption insurance to insure against the loss of revenue accompanying
a fire and any potential relocation costs. Business interruption is a separate
policy and should be considered if your business will be destroyed by being
closed.

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Insurance Fire Brigades
Following the Great Fire of London the first fire insurance company
‘The Fire Office’ was established in 1667.
The office employed a small group of Thames watermen as

firefighters. They were given distinct uniforms and provided with arm
badges showing the company to which they belonged. It is significant that
watermen were chosen as the type of people required to be firefighters as
they were respected for their skill, courage and vigor when dealing with
river barges and their cargo
For a short time The Fire Office dominated the insurance world. It
originally started its own fire brigade to avoid heavy losses among its
insurance risks and as an incentive to potential customers. However, when
the company would only attend fires in buildings that were insured by them,
or when the fire was likely to spread to such property, competitors soon
appeared. Business was very good and all the new companies formed

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large fire brigades. Unfortunately, they were all in competition with one
another.
There was no lack of recruits to these new fire brigades. Generous

part-time pay and the magnificent uniforms were great incentives. More
importantly perhaps, all watermen who were employed on firefighting duties
were protected from the press gangs that roamed along the riverside’s
conscripting men for service in the Royal Navy.
A common factor of all the insurance company uniforms was the

company badge. This was always worn high up on the left arm and was the
same design as the company fire mark.
A fire mark was a badge that was usually placed on the front of a
building above the main door. This would indicate which insurance
company held the fire insurance cover. If a fire occurred the fire mark would
immediately identify which particular insurance fire brigade was needed.
Quite often, if the building did not have their particular fire mark, a fire
brigade would simply return to their station or perhaps remain to jeer and
throw insults at a rival fire brigade.
Early in the 18th century common sense prevailed. To allow property

to burn down because it didn’t bear your fire mark often resulted in the fire
spreading to property that did, and the houses of the poor were never likely
to be insured. Fire insurance companies finally agreed to co-operate at
fires regardless of which they were insured with and the homes of the poor
were dealt with out of charity, and of course, for the good publicity it

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brought the company. Therefore, through keen competition the insurance

companies provided the public service of firefighting.
"Insurance company fire brigades remained at the forefront of

firefighting until the 19th century".
Development of fire brigades
The development of the modern fire brigade is association with

the establishment of fire offices in England. Footprint of assurance,
documentation by Alvin bulau, states that many of the fire office in those
days started maintaining their own fire-fighting brigades to put out fires if
they occurred on the properties insured by their companies. Once the
outbreak of fire was heard, fire fighting groups of different companies would
rush to spot and would actively participate in fire fighting if the property
under fire belonged to their company; if it did not, they would not extend
any help at all to extinguish the fire, and would stand in the crowd and
watch. The personnel of fire company x would be happily watching the
property insured by fire company Y being engulfed by fire. This diabolical
attitude attracted criticism and ultimately, the municipalities were given the
responsibility were given the responsible of maintaining fire brigades, and
private companies were not allowed to maintain any brigades of their own.
Fire insurance is designed to cover the losses arising out of the

accident of fire and related perils the cause of could be accident or natural,
like lighting, thunder, etc. under the principle of causa proximal, the loss
should arisen as a result of the peril insured against.
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There are different methods of assessing and underwriting the risk

of fire. In India, the public sectored companies follow the probable
maximum loss (PML), which decided the retention limit. Presently, in India,
fire insurance policies are classified as small risk policies or medium risk
policies or as listed risk, depending on the sum insured.
Fire Insurance policies
A fire insurance policy involves an insurance company agreeing

to pay a certain amount equivalent to the estimated loss caused by fire to
the insured, within the time specified in the contract. The indemnity is
subject to change depending upon the policy. One should confirm with the
insurer about the types of risks covered, since one cannot insure the
property against all types of risks of fire.
What is the extent of coverage under a Fire Insurance Policy?
Fire insurance provides protection for the estimated value of the

physical house. However, there are a number of exclusions to the same,
for example medical bills, loss of human life and pets, loss of personal
belongings, structures outside the property (including garages and
gazebos), damage to the landscape and expenses for accommodation for
the time being. These things can be covered under a package of extended
property insurance.

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What are the major types of Fire Insurance policies?
There are major types of fire insurance are as followed are: -
 Specific Policy:
This policy covers loss only up to a specific amount. The

insurer is liable to pay a set amount lesser than the property’s real
value. In this policy, the property’s actual value is not considered to
determine the indemnity. The average clause, which requires the
insured to bear the loss to some extent, does not play a role in this
policy. In case the insurer inserts the clause, the policy will be known
as an average policy.
 Comprehensive policy:
This policy cover risks like theft, third party risks, loss of
profit during business closure due to fire, breakdown of machine,
electronic equipment. Boiler expansion, etc, presently, this policy is
issued for a maximum overall cover of Rs 100 crores. Under this
policy, business interruption cover or loss of profit or consequential
loss is available as an option. For the purpose of deciding the sum
assured the business turnover is grouped as a variable charged and

FIRE INSURANCE
the fixed or standing charged. The sum assured for this purpose
represents the gross profit, which is the sum total of the net profit and
the standing changed. In addition, the insured is also required to
specify the period up to the cover will be required.
 Valued policy:
This policy is only a fixed amount, irrespective of the loss, is

paid. The compensation is restricted to the actual loss subject to the
maximum amount of the insured value, irrespective of the market
value of the property.
 Valuable policy:
This policy only a cover against the fire loss is given. The
extend of loss is determined only after the happening of the event
and the valuation is on the basic of the market valve of the property.
 Floater or floating policy:
This policy is subject to the ‘average clause’. Cover property

located at different location and is subject the average clause, which
is a penal provision in some general insurance contracts for under-
insurance. In the event of a claim, the claim is settled by diving the
FIRE INSURANCE
sum insured by the actual valued of the property and multiplying the
product by actual loss. The premium is related to the rate application
to the highest valued of the stock at any location with a
predetermined percentage as loading.
 Replacement or Re-instatement policy:
This policy is subject to the re-instatement clause, which

requires the insurance company to pay for replacing the damaged
property. So, instead of giving out cash, the insurer can re-instate the
property as an alternative option.
 Declaration policy: -
The policy is useful for the business where the stock is

subject to frequent fluctuation or/and value of the stock. The
insurance company may prescribe a certain minimum sum assured,
which at present is Rs.1 crore, in one or more location and less than
Rs. 25 lakhs in at least one of this location. The basic for the
declaration of valued is the market value or as agreed upon the
contracting parties, out of cancellation or declaration shall not exceed
50% of the total premium. Mostly declaration based on any day of the
month or the average of the highest value at risk on each day is
received by the insurer within the stipulated time; then the full sum
assured under the policy may be deemed to have been declared and
the full premium could be charged.

FIRE INSURANCE
 Floater or floating cum declaration policy:
Combined the features of the floating and declaration

policies subject to stipulations on minimum sum assured and
premium retention percentage by the insures
Rating- fire policies
In India, fire policies and add-ons are governed by the tariff. The
structure of fire premium takes into account the nature of the hazard
involve and its evaluation supported by the past claim experience of each
group. The premium so decided is further fire-tuned with reference to the
presence or absence of risk enhancers and reducers. The all India fire tariff
groups these risks into different sections depending upon the nature of the
hazards.

FIRE INSURANCE
Wherever fire-extinguishing device are provided, depending upon

the nature of the installation maintenance, the tariff provide for appropriate
discounts ranging from 2.5% to 10%.Subject to conditions, the tariff
provided for a discount on premium loading based on the claim experience
for the preceding 36 months, excluding the expiring policy period.
Wherever the insured agrees in writing for a specified amount of

the net claim payable as voluntary deductable, in addition to the
compulsory exclusions stipulated in the contract, the tariff provide for
certain discount up to a specified limit. The tariff allows the issue of long-
term policies for dwellings and also provides for an appropriate discount
depending upon the selected.
Risks associated with the oil and petrochemical industries are

governed by the petrochemical tariff 2001.
In contracts of fire insurance, where the PML or sum insured in one

location is beyond the stipulated sum, such risks fall in the category of
mega risks and are permitted to be rated outside the tariff.
Why does one need Fire Insurance?
Fire insurance is important because a disaster can occur at any time.

There could be many factors behind a fire, for example arson, natural
elements, faulty wiring, etc. Some facts that stress the importance of fire
insurance include: -
 Fire contributes to the maximum number of deaths occurring in

America due to natural disasters.

FIRE INSURANCE
 Eight out of ten fire deaths take place at home.
 A residential fire takes place after every 77 seconds.
 The major reason for a residential fire is unattended cooking.
India Insurance (Indian Insurance, Indian Insurance Sector)
India insurance is a flourishing industry, with several national and

international players competing to excel. With several reforms and policy
regulations, the Indian insurance sector has witnessed term.
Indian Fire Insurance
Indian fire insurance, like all other insurance policies in India, is considered
a federal issue. The Tariff Advisory Committee, which is a Statutory Body,
issued the All India Fire Tariff on March 31, 2001, which governs all India
fire insurance policies. The commercial fire insurance India policy provides
protection to buildings, machinery, offices and contents. The purpose is to
alleviate the risk of loss borne by the insured due to the breakout of fire.
The insured is expected to minimize the loss as much as possible by taking
all feasible steps.
How is India Fire Insurance Premium Calculated?
To calculate the amount of premium for an Indian fire insurance

policy, the property is evaluated to know its market value. There are a
number of other factors that are taken into consideration, such as the type
of policy the insured has opted for.
What is the Procedure of an Indian Fire Insurance Claim?

FIRE INSURANCE
 The insured is expected to inform the insurance company at the

earliest and within 24 hours.
 The insurance company appoints a claim representative who surveys

the fire damaged property. The insured needs to provide the claim
representative all the relevant information.
 The degree of actual loss is evaluated by the claim representative.
 The processing of the claim takes a maximum three weeks.
What Documents are required for Indian Fire Insurance?
The documents that the policyholder is required to produce while claiming

for the loss includes are:-
 A report of the fire brigade,
 A true copy of the policy along with the schedule,
 Past claims experience,
 A claim form and photographs.
Indian Fire Insurance: What is the Concept of “utmost faith”?
Under this concept, the policyholder is expected to reveal the true details
while filing the claim. There should not be any misrepresentation of facts

FIRE INSURANCE
or figures, since incorrect information will lead to the policy being declared
as void.
To get a fire insurance India cover, an individual also needs to fill up

the following information in the policy form: -
 Name, occupation and address.
 Subject matter description – which allows for identification in case of

a fire.
 Information about the area where the property is situated.
 The purpose for which the property is being used.
 Whether the property is already insured.
 Personal insurance history.
Fire Insurance Claims

FIRE INSURANCE
Claims for auto accidents and health insurance are fairly common. In fact
most of us have some experience with these types of climes. However not
many of us can say the something about fire insurance while that certainly
a good thing not knowing how the process works can policyholder feeling a
bit lost during an emotionally changed time.
Fire insurance export provided some sight into the fire insurance claims
process. “The first think the consumer has to do is give notice do given,
then the time requirement start coming into play and have to start an
investigation within 15 days. They have to accept or deny the claim within
49 days. They need to explain all the coverage’s that the insured has
enough information to intelligent guide itself during the claim process.
If you have suffered from damage as the result of a fire, then you are likely
to have questions about filing for a fire insurance claim. According to
thesunnews.com, more than $25 million in insurance claims is expected to
be filed as a result of the spring 2009 wildfires in Myrtle Beach, SC. This
estimate was based on a survey conducted by the Sun News service.
Filing for a fire insurance claim is not an easy task, in fact, there is so much
to do that it could be easy to forget or miss things in the process. Also, a
main point to note is there could be more damage than what really meets
the eye. At times it may be good to have someone on your side i.e. a fire
insurance claims consultant.
 Step One: After being a victim of fire damage, one must look over
their insurance policy and carefully find out what is covered, how
much it is covered for, and what else might be included in the
coverage.

FIRE INSURANCE
 Step Two: Next the person involved, must give notice to the
insurance company i.e. file a fire insurance claim. Once that notice is
given, the insurance company must start an investigation within 15
days. The fire insurance company will send out a loss adjuster to
review the damaged property. It is important to understand that the
adjuster is an employee of the insurance company.
 Step Three: Another point to note is that the insurance company has
to make a decision on the acceptance of the fire insurance claim
within 40 days. The company is expected to explain all the fire
insurance claim coverage that is available to the insured so that the
insured has enough information to smartly guide itself during the
claim process.
Some key things to consider:
 If it is safe to access the damaged area, one must take photographs
of the damaged property. Visual documentation works better than
words. This will help with the claims process and will assist the
adjuster in the investigation.
 Many people hire a fire insurance claims consultant to help them in

situations similar to this. Somewhat like the loss adjuster works for
the insurance company, the claims consultant works for you. This is a
group that is on your side and will help you determine and handle the
many tasks that must be performed when filing fire insurance claims.

FIRE INSURANCE
 The smartest thing a policyholder can do is to be conservative and

don’t risk padding the claim. Everyone should have a home inventory
created before any disaster strikes, and a video inventory of the
home’s contents is even more valuable to have. This will help to
avoid having your claim marked as suspicious and make the process
easier.
 If your home is brutally damaged and you need to find other
accommodations while repairs are being made, keep a record of all
expenses. The expenses could include hotel and restaurant receipts.
These items are often covered by the additional living expenses
section of your homeowner’s policy.
Tips to make the fire insurance claims process work smoothly: -
 Put everything in writing and keep a copy for yourself
 Cooperation with insurance company
 Manage your own claim
 Doesn’t settle for less than entitled to
 Learn how to recognize when your insurer is acting in “bad

faith”.

FIRE INSURANCE
General conditions- the Standard fire &special perils policy
The policy governed by the principal of Uberrima fide. And as such,

any non- discloser of information material to the contract, misrepresentation
or inaccurate description of any kind is liable to render the contract void ab
initio.
All properties are expected to be insured for the full value. At the
claim, if it comes to the notice of the company that the property is
underinsured, then the insured becomes his own insurer to the portion of
his loss. For examples, if property valued Rs. A is insured for a valued that
is Rs. A-2, and if the loss is Rs. B, then the claim payable will be [Rs.A-2
divided Rs. A] multiples Rs. B = Rs. C.
The insured has to notify the company about any change in the
nature of business or occupancy in the premise, including non-occupancy
of the premises, within the stipulated time. Any change in the interest of the
property should be promptly notified to the insurer. Transaction like the
assignment of interest, assignment of interest, sale of the premise, etc. will
need the prior consent of the insurance company. If the premises are
covered by both a marine policy and a fore policy, then in the event of a
loss, the fire policy will cover losses over and above the one paid by the
marine cargo.
Block-wise separate amount on building, machine and accessories,

stock on hand and the stock in process and also the furniture and fittings,

FIRE INSURANCE
including any other contents, have to be shown separately for policies

covering building and/or contents.
The insured has to notify the loss or damage to the company

without any delay and has to comply with all other requirement and
formalities for the settlement of the within the prescribed time frame. The
insurance company is not liable to pay the claim after the expiry of twelve
months from the date of loss, unless the claim is a subject of arbitration or
pending action.
Where’re the claim is not admitted by the company as a liability to

be paid on the basis of the contract, the insured should file a case within a
period of 12 months from the date of disclaimer by the company, the
company will deem it as an abandoned claim, and the claim may not be
recoverable thereafter. If the claim is a fraudulent or an unlawful one, then
the insured may forfeit all the benefits under the policy.
Fire insurance Policy covers all immovable and movable property

located in a particular premise such as buildings, plant and machinery,
furniture, fixtures, fittings and other contents, stocks and stock in process
along with goods he ldintrustor on commission.
The Standard fire definition
Words or expressions to which specific meanings have been attached in

any part of this Policy or of the Schedule shall bear such specific meanings
wherever they shall appear.

FIRE INSURANCE
 Policy means the Application, Schedule of policy, terms,

conditions, exclusions, special provisions, warranties, endorsements,
which are part of this contract.
 Company: - means the Insurers under this Policy.
 The Insured: - means the person (s) or juristic person (s)

shown as the Insured in the Schedule, who agree (s) to pay the
premium.
 Aircraft Damage: - means loss or damage either partial or total to

the property insured under this Policy.
 Consequential Loss: - means financial loss other than the material

damage caused by insured perils.
 Fire: - means fire or lightning or explosion of gas used for

specific purposes mentioned as covered under this Policy.
 Coverage.
 The Company agrees with the Insured that if after payment of the
premium, any of the property insured be lost, destroyed or damaged
by: -
 Fire but excluding loss destruction or damage

 Caused by explosion resulting from fire, except for explosion of
gas used for illuminating or domestic purpose
 Caused directly or indirectly by earthquake

FIRE INSURANCE
 To the property insured caused by its own spontaneous

fermentation or heating, or
 Its undergoing any heating process or any process involving the
application of heat
 Lighting: - This includes damages to the property arising out of fire
caused by lighting.
 Explosion: - The explosion of gas used for illuminating or domestic
purposes only, but excluding loss destruction or damage caused by
explosion of gas resulting from earthquake
 Damage: - The damage is arising from extraneous perils as clearly
specified under this Policy During the period of insurance (or any
subsequent period for which the Company accepts a renewal
premium) the Company will pay to the Insured the value of the
property at the time of its loss or destruction or the amount of the
damage or at the Company’s option reinstate or replace such
property or any part of it.
 Missile-testing operations.
 Storm, cyclone, typhoon, tempest, hurricane, tornado, flood and
inundation: - A standard fire & special policy may by endorsement
exclude storm, Storm, cyclone, typhoon, tempest, hurricane, tornado,
flood, inundation, and storm, at the inception of the policy and may
allow a reduction in premium rates as permitted.

FIRE INSURANCE
Provided that the liability of the Company under this Policy shall not
exceed
 In the whole the total sum insured or in respect of any item its sum
insured at the time of the loss destruction or damage
 The sum insured remaining after deduction for any other loss
destruction or damage occurring during the same period of insurance,
unless the Company shall have agreed to reinstate any such sum
insured, and the Insured shall agree to pay the appropriate additional
premium.
Perils Covered
The Standard fire &special perils policy cover both Buildings and
Contents are covered for the same Perils, which are listed below and are
fully defined in the policy.
 Fire, lightning, explosion, smoke, thunderbolt and subterranean
fire
 Riot, civil commotion, strikes, labour and political disturbances
 Malicious acts and vandalism

FIRE INSURANCE
 Earthquake and volcanic eruption (including flood or overflow of

the sea caused by these perils)
 Hurricane, cyclone, tornado or windstorm (including flood or
overflow of the sea caused by these perils)
 Flood
 Bursting and/or overflow of water tanks, apparatus and pipes.
 Buses fire : - The scope of all the cover excludes damages or
destruction due to forest fires
 Missile-testing operations
 impact by aircraft, aerial devices, vehicles or animals
 Escape of water or oil from any fixed water or heating installation
or domestic appliance
 Theft or attempted theft
 Falling trees or branches
 Subsidence or heave of the site on which the buildings stand
and/or landslip
 Although the cover is extensive, various types of loss are not
covered and the policy document should be examined carefully.
Deductibles
these are defined in the policy as follows: "The amount of each loss for
which you are responsible."
A deductible applies to each peril and full details are found on the bottom
section of the Policy Schedule. Simply put, this is an amount of each claim,

FIRE INSURANCE
which is not paid by the company. These amounts are small in respect of
most losses, but you should be aware of the following "higher" deductibles.

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FIRE INSURANCE

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 1

Fox pretended to tire from beating the drum. He gave it to some

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 2

Fire has been an important part of all cultures and religions, from

According to Greek mythology, it was Prometheus who gave fire to

According to anthropological studies, the use of fire began in human

In a broader sense, fire is defined as the state or process of

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 3

and a natural or an artificial environment for forming the combustible

Fire and the other Greek classical elements were incorporated into

In most Wiccan and Pagan traditions, fire is associated with:

 The South (North for Southern Hemisphere),

 The color red on the physical plane.

Other correspondences include blood, candles, the guitar, rubies and

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 4

In rituals, fire is represented in the forms of burning objects, love spells,

The manifestations of the element are found in the sun, lightning, fire,

Fire belongs to the suit of Wands in occult or divinatory tarot, although

The element of fire shows up in mythological stories all across the world,

In East Asia fire is represented by the Vermilion Bird, known as

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 5

the Hindu and Islamic faiths, a lightning bolt; to the Scythians, an axe, to

Fire classification grouping

Group A: - Fires involving organic compounds that are generally solid in

Group B: - Fires that occur in liquids or on solids that could convert

Group D: - fires involving combustible material like titanium, sodium, etc.

Characteristics traits of fire

Materials, particular liquids, become flame-sensitive at respective flash

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 6

In the evaluation of fire hazard, the source of ignitions is of vital

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 7

Insurance obtained by owners of homes and commercial

Fire insurance had its origin in Germany, where an association by

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 8

other fire-fighting equipment. Another enactment that each house had to

Shaker by the unparalleled tragedy and the vulnerability of his

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 9

Definition of fire insurance

 Insurance against loss due to fire.

 Insurance: - a promise of reimbursement in case of loss, paid to

The risk covered under fire insurance

 Air craft damage

 Riot, strike, malicious, and terrorism damage

 Storm, cyclone, malicious, hurricane, flood etc

 Subsidence and landslide

 Bursting overflowing of tanks and pipes

 Missile testing operation

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 10

BRIEF CASE STUDY OF FIRE INSURANCE

Property insurance provides protection against most risks

Fire insurance coverage

There are three types of insurance coverage. Replacement cost

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 11

value of your home. In case of a fire, household content replacement is

World Trade Center case

Following the terrorist attacks of 11 September 2001, a jury

Florida Consumer Choice Act

On June 24, 2009, Fla. Gov. Charlie Crest vetoed the Consumer

LALA LAJPAT RAI COLLAGE COMMERCE & ECONOMICS Page 12

allowed Florida's biggest insurance companies to establish their own rates.

Five days following Christ’s veto of the Consumer Choice Act,