Explain the principles of Marine Insurance.

Principles of Marine Insurance are as follows :

1. Contract of Indemnity : The contract of marine insurance is a contract of indemnity. The assured can, in the event of loss recover the actual amount of loss from the insurer. Under no circumstances, the insured is allowed to make profit out of the marine insurance contract, so far Hull insurance is concerned. Cargo policies provide commerical indemnity rather than strict indemnity. The insurers promise to indemnify the insured "in the manner and to the extent agreed."

2. Contract of Good Faith : The contract of marine insurance is a contract of utmost good faith. Both the insured and insurer must disclose everything, which is in their knowledge and can affect the insurance contract. The insured should be truthful and honest in giving information to the insurance company. He is under a duty to disclose accurately all factual information known to him. The insurer should also disclose the facts of the policy to the proposer. If either party does not observe utmost good faith, other party may avoid the contract. So utmost good faith on the part of both the parties is a must.

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Which insurances are included in other insurances ?

Other Insurances :

1. Burglary insurance
2. Cattle insurance
3. Crop insurance
4. Sports insurance
5. Amartya Sen Siksha Yojana
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 Explain the principles of Fire Insurance.

Principles of Fire Insurance are as follows :

1. Insurable Interest : In fire insurance the assured must have insurable interest in the subject matter of the insurance. Without insurable interest the contract of insurance is void. In case of fire insurance, there must be present both at the time of insurance and at the time of loss.

(i) Ownership,

(ii) Possession, and

(iii) Contract.

2. Utmost Good Faith : The contract 0f hi insurance is a contract of utmost good faith. The insured should be truthful and honest in giving information to the insurance company. Insured knows everything about the subject matter of the insurance. He is under a duty to disclose accurately all factual information known to him. The insurance company should also disclose the facts of the policy to the proposer. So utmost good faith on the part of both the parties is a must.

3. Indemnity: The contract of fire insurance is a contract of strict indemnity. The assured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject matter is insured.

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What is Rajeshwari Mahila Kalyan Bima Yojana ?

Rajeshwari Mahila Kalyan Bima Yojana provides relief to the family members of insured women in case of their death or disablement arising due to all kinds of accidents and/or death and/or disablement arising out of problems incidental to women only.
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Name that type of insurance on which the principle of indemnity does not apply.


The principle of indemnity does not apply to life insurance.
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