Kishore insured his machinery and stock of goods stored in the factory premises against damage by fire and a 'protection note' was given, subject to the usual conditions of the company's policy, one warranty clause being

The denial of claim is not justified as there was no eye-witness to the origin of the fire. The fire insurance policy offers protection against any unforeseen loss or damage to destruction of property due to fire or other perils covered under the policy. The different types of property that could be covered under a fire insurance policy are dwellings, offices, shops, hospitals, places of worship and their contents industrial/manufacturing risks and contents such as machinery, plants, equipment and accessories; goods including raw material, material in process, semi-finished goods, finished goods, packing material etc. in factories, godowns and in the open; utilities located outside industrial/manufacturing risks; storage risks outside the compound of industrial risks; tank farms/gas holders located outside the compound of industrial risks etc. Warranties are an extension of the terms and conditions contained in the clauses which attach to the policy schedule. As explained, the insured proposes insurance of a particular property and completes a proposal. Based on the same and customary trade conditions and practices, as well as underwriting experience, the insurer would stipulate certain warranties or conditions, which help to minimize the chances of loss. Warranty is a statement by which the insured undertakes to do or not do a particular thing or fulfill a condition, or whereby he affirms or negates the existence of a particular state of facts which affect the incidence of a claim. Warranties can either relate to facts existing at the time of the contract or relate to the future. It is an undertaking given by the insured either voluntarily or at the instance of the insurer about something that will determine the insurability of the risk. Since, there is no eye witness to the origin of fire therefore; we cannot say that Kishore has done breach of warranty.