General Information of Fire Insurance



(a) Period of Insurance

All the insurances except life are one year term year. But, a policy for a term of less than one year can also be insurance. A fire insurance policy is issued generally for one issued known as short term policy'. If the policy is issued for more than one year it is called long term policy'

(b) Commencement of Risk

As soon as the contract is completed, the risk is commenced irrespective of the issue of policy or payment of premium

(c) Issue of Cover Note

A cover note is an unstamped document issued in advance of the policy. It contains the same terms and conditions as in the policy. If any loss occurs before the issue of policy, cover note will be sufficient to prove the insurance.

(d) Policy

Fire insurance policy is a document which contains the terms and conditions of a fire insurance contract. It is usually issued for one year. It can be renewed at the end of every year. The policy contains many details such as, the name of the insured and the insurer, the sum insured, the period of insurance, the amount of premium, and the risks insured against etc. 

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