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Assignment 4 Part 1

The document outlines various principles and concepts related to insurance, including the nature of insurance contracts, the duties of the insured and insurer, and specific types of insurance policies. It poses a series of questions regarding insurance terminology, principles, and scenarios to test understanding of the subject. Additionally, it discusses the importance of insurance awareness campaigns and their role in educating the public about risk management and financial protection.

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coollakshay29
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11 views

Assignment 4 Part 1

The document outlines various principles and concepts related to insurance, including the nature of insurance contracts, the duties of the insured and insurer, and specific types of insurance policies. It poses a series of questions regarding insurance terminology, principles, and scenarios to test understanding of the subject. Additionally, it discusses the importance of insurance awareness campaigns and their role in educating the public about risk management and financial protection.

Uploaded by

coollakshay29
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ASSIGNMENT 4

BUSINESS SERVICES (Part I)

Q1. Identify the principle of Insurance:


1) The compensation payable and the loss suffered are to be measured in terms of money.
2) It is a contract of uberrimae fidei
3) The insured should not be allowed to make any profit, by selling the damaged property.
4) Goods kept in a store house catch fire then the owner of the goods should try to recover the
goods and save them from fire.
5) If the full amount is recovered from one insurer the right to obtain further payment from the
other insurer will cease.
6) It is the duty of the insured to voluntarily make full, accurate disclosure of all facts, material
to the risk being proposed and the insurer to make clear all the terms and conditions in the
insurance contract.
7) It refers to the right of the insurer to stand in the place of the insured.
8) According to this principle, an insurance policy is designed to provide compensation only for
such losses as are caused by the perils which are stated in the policy.
9) This principle states that it is the duty of the insured to take reasonable steps to minimise the
loss or damage to the insured property.
10) It is binding on the proposer to disclose all material facts about the subject matter of the
proposed insurance.
11) The insurer undertakes to compensate the insured for the loss caused to him/her due to
damage or destruction of property insured.
12) The insured must behave with great prudence.
13) As per this principle it is the right of an insurer who has paid claim under an insurance, to
call upon other liable insurers to contribute for the loss of payment.
14) Right of ownership of such property passes on to the insurer.
15) When the loss is the result of two or more causes, the nearest cause means the direct, the
most dominant and most effective cause of which the loss is the natural consequence.
16) The insured must have an interest in the preservation of the thing or life insured
17) Failure to make disclosure of material facts by the insured makes the contract of insurance
voidable.
18) The insured must have a pecuniary interest in the subject matter of insurance.

Q2. _________insurance policy is for indemnifying the insured for losses caused by damage to the
ship.
Q3. The insurance company is the insurer and the consideration paid by the assured is the _______.
Q4. _____________ insurance provides protection to the family at premature death of an individual.
Q5. In Fire Insurance, fire must be ________ and ___________.
Q6. In __________ insurance, the amount of the policy cannot be more than the value of the subject
matter.
Q7. The person whose life is insured is called the ___________.
Q8. Under Marine Insurance, there is an insurance policy that can be issued to cover risks against
goods. Name it.
Q9. _________ insurance policy has a surrender value or paid up value.
Q10. ____________Insurance has the elements of protection and investment or both.
Q11. Under which insurance, there is an element of certainity.
Q12. In Marine Insurance, Insurable interest must exist only _____________ .
Q13. __________ insurance contract is not a contract of indemnity.
Q14. In _____________ insurance, the insured must have insurable interest in the subject matter of
the insurance while taking the policy.
Q15. ____________ insurance provides protection against loss by perils of the sea.
Q16. A creditor has an insurable interest in the life of his debtor. Under which Principle of
Insurance.
Q17. The agreement or contract which contains all the terms and conditions is put in writing and
such document is called the _________.
Q18. _________ is a social device in which a group of individuals (insured) transfers risk to
another party (insurer) in order to combine loss experience.
Q19. The accumulated funds of the insurer received by way of premium payments made by the
insured are invested in various income generating schemes. Identify the function of Insurance.

Q20. Which is also termed as contract of Assurance?


Q21. Mention any two methods of advancing loans by the commercial banks
Q22. Who can get an overdraft from a bank?
Q23. Name the type of insurance wherein insurable interest need not exist when the policy is taken.
Q24. Rishabh took marine insurance policy to cover the goods exported by him. Under
the policy goods have been insured against damage likely to be caused by sea-water. During
the voyage a hole was caused in the bottom of the ship. Through this hole sea water entered
into the ship which damaged the goods insured. Can Rishabh claim compensation for this
loss?
Q25. Mr Shaam took an insurance policy against his car and after three months he sold it to Mr.
Sunil. The car was stolen from outside of Mr Sunil’s house. Mr. Shaam made a claim to the
insurance company. His claim was rejected.
a) Was insurance company’s verdict, correct?
b) Was Mr. Shaam right in making claim? Give reasons
c) Who can claim compensation?
Q26. Ashish insured his factory for 5 lakh against fire. Due to fire, he suffered a loss of 2 lakh.
How much amount he can recover from the insurance company? Why?
Q27. Shubham has taken a loan from Saurabh against the security of his factory. Can
Saurabh take a fire insurance policy of that factory?
Q28. A person suffering from cancer did not disclose this fact while taking life
insurance policy. Name and explain the principle violated in the above statement.
Q29. Anil has taken a fire insurance policy for his factory. Due to fire he suffered a loss of 2
lakh and gets the compensation for the same. The half-burnt goods can be sold for 30,000
rupees. Who has the right over it? Why?
Q30. Life is full of uncertainties and to stress upon the importance of insurance. Bajaj
Allianz Life Insurance has carried out an insurance awareness road show called ‘Jan Jagariti’
across different rural locations of Maharashtra, Goa and Gujarat. Subrat Mohanty, head of
marketing, Bajaj Allianz Life Insurance, said this was a campaign wherein a vehicle equipped
with service support materials and representatives goes out to places and a group of artists
perform street play in the local language.
The local people were made aware that on payment of a small periodic payment (premium), a
large possible risk can be covered. Insurance cannot stop the happening of a risk or event but
can compensate for losses arising out of it. Also, the loss is shared by all persons exposed to
it.
a) Identify the functions of insurance by quoting the lines from the above para.
b) Also name and explain the function of insurance not mentioned above.

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