Fire and Consequential Loss Insurance covers loss of profits, rental, revenue or standing charges resulting from a burnt down business that was insured against fire.  It is to be noted that consequential losses are covered by an ordinary insurance policy; they are to be included on payment of additional premium.

Fire insurance is a contract between the insured person and insurance company in which the insurer in return for a premium agrees to indemnify the insured for the financial loss caused by fire during a specific period. Fire insurance covers damage or destruction to property or goods, caused by fire.

On the contrary,   standard fire and special perils insurance is a traditional cover that offers cover against fire and related damaged in the policy. Such policy covers building, plant and machinery, furniture, fixtures and fittings etc.

Consequential damages are a kind of compensatory damages. These are awarded when the loss suffered by a plaintiff is not caused directly by the wrongful conduct of a defendant.

Fire & Consequential Loss Insurance Exam

Insurance Institute of India and other institutions conducts examination for their professional courses. These courses include Associateship, certificate, diplomas etc.  In these insurance courses Fire Insurance Claim paper is one of the important papers.  Associateship examination has two parts, Life and Non-Life. For the candidate to be eligible to write Associateship examination, he/she need to pass Licentiate examination first, and if the candidate is unable to clear the licentiate exam in non-life branch, he/she cannot write for Associatehips.


Candidate must have passed 12th/intermediate examination to appear in this examination. Age criteria are 18 to 35 years.


Syllabus for these associateships, diplomas and certificates  course  in  fire insurance policy covers  Basic Principles and the Fire Policy Chapter; Add On Covers and Special Policies; Fire Hazards and Fire Prevention; Erstwhile Tariff – Rules and Rating Chapter; Documents;  Underwriting; Claims – Legal Aspects; Claims – Procedural Aspects; Consequential Loss Insurance – I ; Consequential Loss Insurance – II; Specialized Policies and Overseas Practice.

Exam pattern

In Fire insurance Paper around 10 are asked and only 8 are to be answered.  Each question has not equal marks; question number one carries 16 marks while the remaining questions are all of 12 marks. This certainly makes question number one compulsory, provided the candidate does not want to lose out on 4 marks. Apart from it, this paper doesn’t have any multiple choice questions. Question paper is in two languages, English and Hindi and one can choose according to his/her comfort. Duration of the exam is three hours and the total marks are 100.