Question

In reference to fire insurance following facts are given. Identify the correct statements.
(A) Fire insurance is a comprehensive policy which covers loss on account of fire, earthquake, riots, floods, strikes and malicious intent.
(B) Fire Insurance can be taken only by the owner of the premises to be insured.
(C) A tenant cannot insure rented premises but he can insure the contents of the premises.
(D) Fire insurance is compulsory if your house/flat is financed by a bank or any other financial institution.
Choose the correct answer from the options given below:

• A. (A), (B) and (D) only
• B. (A), (B) and (C) only
• C. (A), (B), (C) and (D)
• D. (B), (C) and (D) only

Answer 1

The Correct Option is B

The correct answer includes the following statements:
- (A): Fire insurance indeed covers losses on account of fire, earthquakes, riots, floods, strikes, and malicious intent, making it a comprehensive policy.
(B): Fire insurance can only be taken by the owner of the premises to be insured.
- (C): A tenant cannot insure the rented premises, but they can insure the contents of the premises they occupy.
(D): While fire insurance is strongly recommended, it is not universally compulsory unless mandated by specific lenders or banks.
Hence, statements (A), (B), and (C) are correct, while (D) is not necessarily true in all cases.