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Damaged insulation
The wires in each cable are insulated from one another, and the whole cable has more protective insulation arround the outside. If this insulation is damaged, there is a chance that the user will touch the bare wire and get an electric shock. There is also a chance that current will flow between two bare wires, or from one bare wire and any piece of metal it comes in to contact with.
Often, the metal case of an electrical appliance is earthed by connecting it to the earth wire to reduce the chances of a fatal electric shock.
Overheating of cables
Some times another hazard can arise if an excessive current flows in the wires. They will heat up and the insulation may melt, causing it to emit poisonous fumes or even catch fire. Thus it is vital avoid using appliances that draw too much current from the supply.
Damp conditions
When using electricty, it is important to avoid damp or wet conditions.
Because water is an electrical conductor .
So if your hands are wet when you touch an electrical appliance, the water may provide a conductive path for current to flow from a live wire through you to earth. That could prove fatal.