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The Tax Publishers Insurance--Burglary and House Break Policy Insurance under Burglary and House Breaking Policy--Availability of Standard Policy--Provisions thereof and Judgments of Courts thereon S.S. Agrawal Term insurance has been literally defined as an arrangement by which an entity provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Insurance can also be defined as an agreement by which a person pays specified amount to an entity and in return thereof the said entity promises to indemnify to the said person if the loss or damages is caused to the insured property to the extent of the amount insured or the actual loss caused, whichever is lower. In present era, insurance can be taken in respect of large number eventualities, which result in loss/expenses to insured because of happening of that event. However, it is necessary for taking insurance policy that insured should have insurable interest in the life of person insured or property/assets, held by him. Policies can even be extended to cover riot, strike, malicious damage and theft, including loss of profit in a business. Thus, insurance has taken such deep root that it can virtually be resorted to for any unforseen loss caused to life or property, in which the insured has insurable interest. Use of insurance as an instrument is fast gaining ground in order to ensure that the owner of an asset is not uncovered against mishaps or loss damage likely to cause to insured. However, each policy taken is subject to rules and regulations, specified in such a policy, unless a tailor-made policy is prepared for any specific loss. Present article is, however, confined to all aspects of Burglary and House Breaking Policy for which standard policies are available, wherein the author has discussed relevant provisions of such a policy with decisions of Supreme Court on this issue. 1. Introduction As the name implies House Breaking means illegal entry in a building/ house with intent to commit a crime, especially theft. Burglary means forced entry and theft, stealing, robbery, pilferage, looting etc. Insurance under Burglary and House Breaking in India is of comparatively recent origin. Insurance companies issue standard policy in respect thereof, which contains terms and condition under which such policy is issued and no change therein is allowed by insurers. In case such a policy is taken the insurer indemnifies the insured for the loss caused to him to the extent of amount insurance or actual loss, subject to the terms and conditions mentioned in the policy. Normally, such policy specifies that the insurer would indemnify the insured for loss caused because of theft etc. when the theft precedes forcible entry of intruder in the premises from where the theft took place. However, when a claim is made by insured for loss caused because of theft/burglary etc., it is normally argued from the side of insured that when theft stands proved, such loss/damage caused to the property has to be paid to insured, irrespective of fact whether there was forcible entry or not, in view of common sense meaning of loss caused from burglary etc. On face of it, the contention seems to have a force but the same is not supported by terms of insurance policy and it is to be seen whether the insurance is a contract just like other contracts and it has to be interpreted accordingly or whether a liberal meaning is required to be given to it. SUBSCRIBE FOR FULL CONTENT

The Tax Publishers

Insurance--Burglary and House Break Policy

Insurance under Burglary and House Breaking Policy--Availability of Standard Policy--Provisions thereof and Judgments of Courts thereon

S.S. Agrawal

Term insurance has been literally defined as an arrangement by which an entity provides a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium. Insurance can also be defined as an agreement by which a person pays specified amount to an entity and in return thereof the said entity promises to indemnify to the said person if the loss or damages is caused to the insured property to the extent of the amount insured or the actual loss caused, whichever is lower. In present era, insurance can be taken in respect of large number eventualities, which result in loss/expenses to insured because of happening of that event. However, it is necessary for taking insurance policy that insured should have insurable interest in the life of person insured or property/assets, held by him. Policies can even be extended to cover riot, strike, malicious damage and theft, including loss of profit in a business. Thus, insurance has taken such deep root that it can virtually be resorted to for any unforseen loss caused to life or property, in which the insured has insurable interest. Use of insurance as an instrument is fast gaining ground in order to ensure that the owner of an asset is not uncovered against mishaps or loss damage likely to cause to insured. However, each policy taken is subject to rules and regulations, specified in such a policy, unless a tailor-made policy is prepared for any specific loss. Present article is, however, confined to all aspects of Burglary and House Breaking Policy for which standard policies are available, wherein the author has discussed relevant provisions of such a policy with decisions of Supreme Court on this issue.

1. Introduction

As the name implies House Breaking means illegal entry in a building/ house with intent to commit a crime, especially theft. Burglary means forced entry and theft, stealing, robbery, pilferage, looting etc. Insurance under Burglary and House Breaking in India is of comparatively recent origin. Insurance companies issue standard policy in respect thereof, which contains terms and condition under which such policy is issued and no change therein is allowed by insurers. In case such a policy is taken the insurer indemnifies the insured for the loss caused to him to the extent of amount insurance or actual loss, subject to the terms and conditions mentioned in the policy. Normally, such policy specifies that the insurer would indemnify the insured for loss caused because of theft etc. when the theft precedes forcible entry of intruder in the premises from where the theft took place. However, when a claim is made by insured for loss caused because of theft/burglary etc., it is normally argued from the side of insured that when theft stands proved, such loss/damage caused to the property has to be paid to insured, irrespective of fact whether there was forcible entry or not, in view of common sense meaning of loss caused from burglary etc. On face of it, the contention seems to have a force but the same is not supported by terms of insurance policy and it is to be seen whether the insurance is a contract just like other contracts and it has to be interpreted accordingly or whether a liberal meaning is required to be given to it.