Need for Fire Insurance


The need for fire insurance arises out of the following facts:

1. There exists material property in business susceptible to damage or destruction by fire or other peril

2. Such material property has intrinsic value measurable in terms of money

3.Fire may not only destroy the business assets but also result into closure of business for quite a long time. Thus, the business activity will have to be suspended for a long time.

4. Fire results not only in loss of business assets, but also in other consequential losses like loss of production, loss of profit, etc. So, to protect a business from the above losses a fire insurance is inevitable

Fire insurance is needed for the general public also The individuals can also get fire insurance. People become mentally and financially secured by insuring their personal assets. Every step can be taken to eliminate or minimise the loss. Fire insurance companies stimulate the installation of protective devices by granting soft loans. They also help in installation of fire fighting devices. Thus, fire insurance is of immense importance to the business field and the general public.

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