IMPORTANCE OF FIRE INSURANCE

Insurance has become synonymous with safeguarding the interest of people and property from loss and uncertainty. Insurance is very important for businesses as they provide compensation for loss or damaged property. Property insurance in India provides safety against most risks such as Fire, theft and certain types of weather damage. Besides minimizing losses, insurance helps in industrial development as the premium which is collected is utilized for the economic development of the country.

The most popular form of property insurance in India is Fire insurance. It is a form of insurance coverage to protect assets from losses occurring due to fire. Fire Insurance aids business men to feel secure and carry on their businesses with confidence as fire accidents are unexpected and cause massive destruction which can bring a flourishing business to an impasse. Fire insurance protects enterprises in the following ways:

1. Covers the cost of the property damage due to fire.

2. Provides medical expenses to employees who sustained injuries from the fire incident.

3. Provides compensation for loss of life as well.

Apart from businesses, personal assets can also be insured against fire damage under a fire insurance policy. It provides monetary compensation in case of loss or damage to personal property such as flats, furnishings, clothes etc. It also provides maintenance price for the electronic items which are damaged by fire like television, computer, air coolers etc. Safeguarding property or home from fire damage is essential, more so if you know the chance of one developing is very real.

Not taking up an insurance policy puts you in a precarious financial situation in the event of a fire. Modern technologies like smoke detectors and alarms do alert you in advance and provide the time to run back to safety, but as far as safeguarding of property is concerned they can do little as fire spreads at a rapid pace. Hence fire insurance is a critical protective measure which one cannot ignore at any cost.