Arson Clause in Fire Insurance Policies

Prima facie evidence of arson arises when at least one circumstance from the first group coincides with any circumstance from the second group.

(a) Suspicious origin of fire with specific indicators found within 12 hours of fire occurrence, witnessed by authorities:
- Discovery of rags or jute sacks soaked in gasoline, kerosene, petroleum, or other inflammable substances.
- Presence of mechanical or electrical devices intended to ignite fire.
(b) Fire outbreak in multiple separate locations within the same premises at approximately the same time.
(c) Occurrence of more than two fires within three months at the insured premises suggesting incendiary origin.
(d) Storage of gasoline, petroleum, or highly inflammable materials contrary to policy terms or other insurance agreements.

(a) Total insurance coverage on the building and contents exceeds 70% of the actual value of the property insured.
(b) Noticeable withdrawal of a substantial portion of insured effects shortly before the fire, not consistent with normal business operations.
(c) Fire incident happens within three months from the policy's inception date.

The concurrence of the above conditions constitutes prima facie evidence of arson, providing a foundational presumption for legal and insurance proceedings.

The provisions of this Act became effective upon its approval, thereby amending the Insurance Act by introducing the specified clause as mandatory in applicable fire insurance policies.