Overloading can occur when _______.

Overloading can occur when live wire and neutral wire come in direct contact. In such a situation, the current in the circuit abruptly increases. This may occur due to a fault in the appliance or when the insulation of the wire is damaged. Overloading is also possible when too many appliances are connected to a single socket. A fuse in a circuit prevents damage to the appliances and the circuit due to overloading by breaking the circuit.