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    WHERE IS FIRE IN MOTOR INSURANCE?

    Did you know, the Motor Insurance policy does NOT define “fire…. lightning” anywhere in the policy document, while it promises to indemnify! Absence of definition may lead to subjective definitions, paving way for potential litigation.

    SECTION 1 of the Motor Policy wording mentions the following:
    “The Company will indemnify the insured against loss or damage to the vehicle insured hereunder and/ or its accessories whilst thereon: by fire explosion self-ignition or lightning”.

    The Barron’s Dictionary of Insurance Terms (3rd Edition) defines ‘FIRE’ as:


    “Intense combustion resulting in a flame or glow. In order for the fire peril to be covered under PROPERTY INSURANCE, the fire must be a HOSTILE FIRE, not a FRIENDLY FIRE”.

    Knowing that the money an individual spends for insurance over a life time surpasses all other expenditures including the purchase of a home, we wonder how a customer’s question in this regard be answered when the policy document is silent?

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