Perils covered under the Fire insurance policy

The following are covered under the Fire Policy in India :


Fire – The term ‘Fire’ for insurance purposes, means actual ignition or burning, under accidental or fortuitous circumstances, so far as the insured is concerned. So all damages by such ‘fire’ are covered.

Lighting – All damages caused by lightning, whether fire results or not, is covered.

Explosion/Implosion – Explosion is ‘ a sudden violent burst with a loud report ‘  whereas Implosion means ‘bursting inward collapse due to external pressure.’ All the damages caused by explosion (except boilers) and implosion are covered.

Aircraft Damage – All the damages/destructions caused by aircrafts, other aerial or space devices and articles dropped there from (except pressure waves).

Riot, Strike, Malicious and Terrorism Damage – All the direct visible physical loss, destruction or damage by external violent means caused to the property arising out of the above causes.

Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation All these terms do not have any particular definitions given by the policy, so their popular meanings are accepted. Storm is defined as ‘ some severe, atmospheric disturbance such as unusually heavy rain, hail, wind, snow storms, or some combination of these ‘.

E.g, Cyclone, typhoon etc. Flood is defined as’ escape from its normal confines, of a body of water, due to a rise in its level, or to the breakdown of the barriers restraining it.’ So, all the damages due to the above mentioned causes are covered.

Impact Damage – All the damages caused by any rail/road vehicle, not owned by the insured, or any occupier of his premises, or his employees, are covered under the fire policy.

Subsidence and Landslide (including rockslide) – All the destruction/damages caused by subsidence of part of the site on which the property stands or landslide or rockslide, are covered under the fire policy.

Bursting and/or Overflowing of Water tanks, Apparatus and Pipes – All the damages caused by any/all of them are covered under the fire policy.

Missile Testing operation – All the damages/destructions caused by Government of India for Testing Missile Operations are covered under the fire policy.

Leakage from Automatic Sprinkler Installations – A sprinkler installation is designed to automatically discharge water when there is a fire. Water damage caused thereby is payable as damage by the fire.

Bush Fire – Damage or destruction caused by Bush Fire are covered under Fire policy.

Extracts from “Guide for Fire Consequential Loss Insurance (IC-57)” by Dr. Rakesh Agarwal. Copyright of Sashi Publications, kolkata and

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