Why do insurance companies take these factors into consideration?

In case of death of the policy holder within the validity periof the policy, the insurer considers factor whether the death was a natural one or of suicidal nature. Even in natural death,if the person dies of chronic disease,the insurer can call for medical report to ascertain the actual cause of death. Similiarly, in case of fire, the insurer has to be covinced about the actual cause of fire,whether it is due to short circuit or unscrupulous element involved in causing the fire. In India, the jute barons made crores from insurance claims caused from self imposed fire.