Author: Azin Sadat Ostadramezan
Coordinator: Property and Casualty (Non-life) Insurance Research Group
This project is conducted in order to modify general conditions of fire insurance ratified by the High Council of Insurance (the Bylaw 21). With regard to extensive experts' discussions around the Bylaw 21 in relevant committee meetings and analyzing the code of practices in both domestic and international laws as well as investigating experience, laws and rules of fire insurance and its corresponding general conditions in six selected countries including United States, England, Singapore, Canada, Japan and Malaysia, and comparing them with Bylaw 21, it can be stated that the proposed general conditions could have the following features:
Restructuring general conditions from 3 to 7 chapters and from 34 articles to 39, transferring the responsibility of ‘declaring inconsistent cases between insurance proposal and policy’ from insurers to policyholders, resolving the ambiguity of inception and termination hour of the policy, determining the policyholder duty of good faith to its insurer, adding average clause article (article 10 to insurance law), modifying and completing the provisions to clarify ambiguity and put them into effect in order to raise awareness of the policyholder, enumerating additional risks and coverage, compressing all articles pertinent to policyholder’s tasks and commitments in the bylaw 21 into one chapter and adding 3 additional articles in this regard, determining different states of risk increase, determining declarer as well as degree of transfer ownership of the insured object, specifying the duty of policyholder or beneficiary to avoid any act that could complicate insurer’s action against liable for damage, determining the duty of policyholder to observe safety recommendations as well as declaring dislocation of the insured object, determining the way of pronouncing cancellation and inception of its effect on behalf of policyholder, defining the cases that are considered as full loss, specifying the reference who determines the amount of payable damage, increasing exceptions, adding an article of dispute resolution in order to provide the solutions such as negotiation or referral to the court.
It should be noted that in all modifications in the articles and notes of the proposed general conditions, the technical justifications, based on expert comments, are separately provided in a comprehensive report.
Keywords: Comparative Study, Fire Insurance, General Condition.