According to the standard insurance policy, the basic risk which may be insured including three following risks:
- Fire in the common sense, fire is understood as a chemical reaction with heat and emitted light. Fire is burning occurs beyond the control of people, in addition to specialized sources of fire and damage to people and / or property. That would be considered as an insured fire if it meets sufficient factors:
+ It actually emits fire;
+ Fire is not a specialized fire;
+ Emitting fire must be a sudden or accidental fire to the insured, but not because of deliberation, their intentional or accomplice. However, a fire occurred due to the careless of the insured also belongs to the insurance coverage range;
+ Fire causing insured damage must be due to outside factors. In spite of having random elements, immanent reasons and being spontaneous from the insured property that suddenly prove effects and cause damages are not considered as the insured fire.
However, the insurer just excludes damages of spontaneous combustion property, but not excludes the next fire consequence from blaze. For examples, a cattle-feed warehouse suddenly caught fire. Before the fire brigade up to the scene, the fire had spread and the wind blew the fire in the side grain storage. Excluding applied insurance policy for cattle-feed warehouse because of its auto-ignition, but will not be applied in the grain storage. Besides the elimination of property damage caused by spontaneous or affected by a heat treatment process, the standard insurance policy also excludes cases of fires by earthquakes, volcano or other changes of nature such as fires in underground coal-mine and oil wells, ... and damages caused by or as the result of the forest burning, shrubs, grasslands, deserts, jungles or burning with the purpose of cleaning field, land in spite of being random. To these exclusions, if the insured requests, it still be insured by the additional risks or supplemental terms.
- Lightning is a discharge phenomenon of the charged cloud and the ground which impacts on the insured. The insurer will compensate when the property is destroyed directly by lightning, or by lightning causing fires. So, when lightning without distortion or causing fire to the insured property, it is not within the scope of compensation liability of insurance.
It should be noted that when lightning directly destroyed or emitted fire, then caused fire to electrical equipment, it shall be compensated by the insurance. If lightning just change currents, without causing a fire and resulting in damage to the electrical equipment, it shall not be entitled to compensate under this risk.
- Detonation is a fire phenomenon which rapidly occurs and creates a big pressure with loud noise, generated by the sudden expansion of the liquid, solid or gas. Cases of detonation that caused a fire are insured if the detonation does not caused by exclusive reasons. Detonation in basic risks only limit in case of boiler and gas service activities, but excludes the damages caused by earthquake, volcano, or other fluctuations of the nature. This problem is also insured when it happens in a factory which is related to a boiler just be used to boil the broth in the canteen. Damages caused by the explosion but not causing fire, except the case of boiler and gas service activities, will not be entitled to compensate under this risk. In case of damage due to explosion arising from fire, the first damage by a fire will be compensated ,and damage caused by the explosion, outside the boiler and gas for life, will not be compensated.