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Fire Peril in Fire Insurance: Meaning & Key Coverage Areas

30 Oct 2025

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Fire Peril - Understanding Perils covered under Fire Insurance

A Fire Peril is one of the 12 Perils in Fire Insurance policy that covers damages directly caused by Accidental Fire outbreaks in the insured property.

A claim scenario

One of our MSME customer from Delhi, reported damage of Stock due to Fire Accident which is caused due to Electrical Short Circuit. A Surveyor was deputed on the immediate next day for the preliminary inspection and on the receipt of relevant documents claim was fully settled.

Premium paid –   Rs. 39,000/-

Assessed Loss –   Rs. 48,79,177/-

Claim paid –     Rs. 48,79,177/-

This helped the customer to continue to run the business even after this major disruption without letting the loan turning into NPA.

What is Not Covered under Fire Peril

Specific instances such as damage from fermentation, natural heating, spontaneous combustion, or heating processes, damage resulting from orders by Public Authority or any intentional damage is not covered.


Mutual Fund Investments are subject to market risks, read all scheme related documents carefully. The information provided is generic in nature and is for informational purpose only. Please consult your financial advisor before taking any decision.

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    The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.

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