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Documente Cultură
Principles of Insurance
5
Notes
FUNDAMENTALS/PRINCIPLES OF
GENERAL INSURANCE
5.0 INTRODUCTION
After studying, the life insurance and its importance, the over
aspect of insurance other than ‘Life Insurance’ would is
General Insurance. In this chapter, we cover various aspect of
General Insurance such as Principles of utmost Good faiths
material fact Principle of Insurable Insures and Principle of
Indemnity.
General Insurance comprises of insurance of property against
fire, burglary etc, personal insurance such as Accident and
Health Insurance, and liability insurance which covers legal
liabilities. Suitable general Insurance covers are necessary for
every family. It is important to protect one’s property, which
one might have acquired from one’s hard earned income. Losses
created to catastrophes such as the tsunami, earthquakes,
cyclones etc. have left many homeless and penniless. Such
losses can be devastating but insurance could help mitigate
them. Property can be covered, so also the people against
Personal Accident. A Health Insurance policy can provide
financial relief to a person undergoing medical treatment
whether due to a disease or an injury.
5.1 OBJECTIVES
At the end of this lesson you will be able to know:
z Various additional principles applicable to life insurance
contract
z In case any of these principles are missing the insurance
contract will become void
Or Notes
Misrepresentation :
Innocent :
This occurs when a person states a fact in the belief or
expectation that it is right but it turns out to be wrong. While
taking out a Marine Insurance Policy the owner states that
the ship will leave on a specific date but in fact the ship leaves
on a different date.
Non-Disclosure
(1) Innocent
(2) Deliberate
(3) Material to the risk
(4) Immaterial to the risk
5.1
1. No you cannot insure your house under residential
building because you are storing fire hazard material and
if any claim arises then no claim will be payable.
2. No, you are not the owner of Red Fort.
a. Only A is true b. Only B is true
c. Both are true d. Neither of two
3. Insurers are liable to pay claims arising out of losses
caused by
a. insured perils b. uninsured perils
c. excluded perils d. All
5.15
1. d 2. b
3 b 4. d
5. b 6. d
7. a 8. d