Question

State the following statement is True or False:

Fire Insurance is a contract to cover risk of loss due to fire.

• A. True
• B. False

Answer 1

The correct option is A True

Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by fire during a specified period upto the amount specified in the policy. Normally, the fire insurance policy is for a period of one year after which it is to be renewed from time to time.