Correct option is A
Section 49 of the Transfer of Property Act, 1882, ensures that the transferee (the person to whom the property is transferred) is entitled to the benefits of any insurance policy taken by the transferor (property seller) against loss or damage by fire. This means if a property is insured against fire before the transfer, the transferee can claim benefits under the same policy if a fire occurs post-transfer.
Information Booster: Fire insurance covers property against damage or loss caused by fire. This provision under Section 49 ensures that the transferee’s financial interests are safeguarded by the existing fire insurance policy, preventing the need for reinsurance immediately after transfer.
Additional Information:
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(b) Encroachment: Incorrect because encroachment refers to unlawful entry or expansion onto another person’s property, which is not typically covered by insurance policies.
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(c) Natural calamity: Incorrect because Section 49 does not extend insurance coverage to natural calamities unless explicitly stated in the policy.
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(d) None of the above: Incorrect as the correct answer is fire, which is explicitly mentioned in the section.
