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If the live wire should touch the casing of an appliance, the casing would become live and give electric shocks. The ground wire prevents this because it provides a low resistance route to earth and any current flows away safely. Because of the low resistance, a large current flows and blows the fuse, thus disconnecting the appliance.
One safety feature is that the ground wires connect the outer cases of all items of electrical equipment together, so that (for example) it is not possible to get an electric shock by touching the cooker and the fridge at the same time. This type of grounding is also used in aircraft even though there is no connection to the ground.
The other feature is that the ground wires are grounded to an earth rod in the ground, to avoid a buildup of static electric charge. They are also connected to water and gas supply pipes.
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