ASSINGNMENT ON

By Shaikh Aadil M. Aslam F.Y. BMS. Roll No. 39

Graphics :
Graphics are visual presentations on some surface such as a wall, canvas, computer screen, paper or stone to inform, illustrate or entertain. Examples are photographs, drawings, Line Art, graphs, diagrams, symbols, geometric designs, maps, engineering drawings, or other images which are not only text. Graphics is often used in combination with text and color. Graphics can be functional or artistic. Graphics can be imaginary or representing something in the real world. The latter can be a recorded version, such as a photograph, or an interpretation by a scientist to highlight essential features, or an artist, in which case the distinction with imaginary graphics may get blurred.

Types Of Graphics
In computer graphics there are two types of graphics: Raster, where each pixel is separately defined, and Vector, where mathematical formula are used to draw lines (eg 'take two points and draw a parabole between them'), which are then interpreted at the 'receiving end' to produce the graphic. Vectors make for in principle infinitely sharp graphics and usually smaller File, but is limited to relatively simple representations.

Raster Graphic
A raster graphics image, digital image, or bitmap, is a data file or structure representing a generally rectangular grid of pixels, or points of color, on a computer monitor, paper, or other display device. The color of each pixel is individually defined; images in the RGB color space, for instance, often consist of colored pixels defined by three bytesone byte each for red, green and blue. Less colorful images require less information per pixel; an image with only black and white pixels requires only a single bit for each pixel. Raster graphics are distinguished from vector graphics in that vector graphics represent an image through the use of geometric objects such as curves and polygons. A colored raster image (or pixmap) will usually have pixels with between one and eight bits for each of the red, green, and blue components, though other color encodings are also used, such as four- or eight-bit indexed representations that use vector quantization on the (R, G, B) vectors. The green component sometimes has more bits than the other two to allow for the human eye's greater discrimination in this component.

Risk :
In a contract of insurance the insurer undertakes to protect the insured from a specified loss and the insurer receive a premium for running the risk of such loss. Thus, risk must attach to a policy.

Mitigation of Loss:
In the event of some mishap to the insured property, the insured must take all necessary steps to mitigate or minimize the loss, just as any prudent person would do in those circumstances. If he does not do so, the insurer can avoid the payment of loss attributable to his negligence. But it must be remembered that though the insured is bound to do his best for his insurer, he is, not bound to do so at the risk of his life.

Subrogation :
The doctrine of subrogation is a corollary to the principle of indemnity and applies only to fire and marine insurance. According to it, when an insured has received full indemnity in respect of his loss, all rights and remedies which he has against third person will pass on to the insurer and will be exercised for his benefit until he (the insurer) recoups the amount he has paid under the policy. It must be clarified here that the insurer's right of subrogation arises only when he has paid for the loss for which he is liable under the policy and this right extend only to the rights and remedies available to the insured in respect of the thing to which the contract of insurance relates.

Types of Insurance:
Normally, there are three types of insurance,

Fire Insurance Marine Insurance Life Insurance

FIRE INSURANCE:
Fire insurance is a contract to indemnify the insured for destruction of or damage to property or goods, caused by fire, during a specified period. The contract specifies the maximum amount, agreed to by the parties at the time of the contract, which the insured can claim in case of loss. This amount is not, however, the measure of the loss. The loss can be ascertained only after the fire has occurred. The insurer is liable to make good the actual amount of loss not exceeding the maximum amount fixed under the policy.

CAUSA PROXIMA:

It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. If the proximate cause of theloss is fire,the loss is recoverable. If the cause is not firebut some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. Fire risks do not cover damage by explosion, unless the explosion causes actual ignition,which spreads into fire. The cause of the fire is immaterial, unless it was the deliberate act of the insured.

STEPS TO BE TAKEN IN FIRE INSURANCE CLAIMS

a) It is the duty of the insured, or any other person on his behalf, to give immediate notice of fire to the insurance company so that they can safeguard their interest, such as, deal with the salvage, judge the cause and nature of fire and assess the extent of loss caused by the fire. Failure to give notice may avoid the policy altogether. The insured is further required by the terms of the policy, to furnish within the specified time, full particulars of the extent of loss or damage, proof of the value of the property and if it is completely destroyed, proof of its existence. Delivery of all these details to the company is a condition precedent to the claim of the assured to recover the loss. If the assured prefers a fraudulent claim, whether for whole or part of the policy, he would forfeit all benefits under the policy, whether or not there is a condition to this effect in the policy. Generally, the fraud consists in over -valuation, but over-valuation due to mistake is not fraudulent. In a majority of fire insurance claims, the expert assessors of the company are able to arrive at mutually acceptable valuation.

b) c)

d)

MARINE INSURANCE:
The contract of marine insurance is generally effected through the agency of insurance brokers employed by the insured. The broker prepares a brief memorandum of the risks to be covered and takes it to a number of individual insurers, called underwriters, each of whom initial the note for the amount he is prepared to underwrite. The document, known as "The slip, " contain information such as the name of the ship, the date of voyage, the description of the risk, the sum insured and the rate of premium. "The Slip" is in practice a complete and final contract. However, a contract of marine insurance must be embodied in a marine policy in accordance with the Act.

1. 2. 3. 4. 5. 6. 7.

KINDS OF MARINE POLICIES : The Marine Insurance Act deals with the following types of policies: Voyage Policy Time Policy Mixed Policy Valued Policy Open or Un-valued Policy Floating Policy ASSIGNMENT OF POLICY

1.

Voyage Policy :
When the contract is to insure the subject matter at and from one place to another, the policy is called a "Voyage policy". In this case the risk attaches only when the ship starts on the voyage.

2.

Time Policy :
Where the subject -matter is insured for a definite period of time, it is called a "Time Policy. The ship may pursue any course it likes; the policy would cover all the risks from perils of the sea for the sated period of time. A time policy cannot be for a period exceeding one year, but it may contain a continuation clause.

3.

Mixed Policy:
It is a combination of voyage and time policies and covers the risk during particular voyage for a specified period of time.

4.

Valued Policy :
It is a policy, which specifies the agreed value of the subject-matter insured. If there is no fraud or miss-representation, the value in a valued policy is conclusive as between the insurer and the insured, whether the loss is partial or total.

5.

Open or Un-valued Policy:

In this policy the value of the subject-matter insured is not specified. Subject to the limit of the sum assured, it leaves the value of the loss to be subsequently ascertained.

6.

Floating Policy:
The practice of taking out floating policies has come in vogue because of the difficulty of knowing by which ship or ships the goods are to be shipped. Such a policy therefore only mentions the amount for which the insurance is taken out and leaves the name of the ship(s) and other particulars to be defined by subsequent declarations.

7.

Assignment Of Policy:
A marine policy is assignable by endorsement, or in any other customary manner, and the assignee can sue on it in his own name subject to any defense which would have been available against the person who effected the policy. The assignment may be made either before or after the loss, but an assured who has parted with or lost his interest in the subject-matter insured cannot assign.

LIFE INSURANCE:
Life insurance is an important part of wealth management planning. For most people, the purpose of life insurance should be to replace the financial contribution made by a family member. Life insurance can be pure insurance, which pays only on the death of the insured, or cash value insurance, which also has a savings vehicle. Most people who need life insurance are better off with pure insurance and saving for retirement through other vehicles. Proceeds from life insurance cover three types of expenses: replacement of the policyholder's income or work, estate taxes, and burial costs. Following are kinds of life insurance,

KINDS OF LIFE INSURANCE :

There are many types of life insurance products available to meet the differing needs of many individuals and families. The two most popular types of life insurance are,

1. 2.

Term Life insurance Whole Life Insurance

1.

Term Life Insurance:

Term insurance is the simplest type of life insurance and requires the smallest initial cash outlay. It is often used to provide protection for a specific period of time, such as 10 years. Yearly renewable term, where premiums change each year, is also available. You typically can renew your policy at the end of a term with out providing evidence of insurability, But the premium will Probably increase each time you renew the policy. The new premium upon renewal can be substantially higher than the premium during the term. A death benefit is paid to the beneficiary if the insured dies while The policy is in force. There are no benefits paid at the expiration of the policy or if the insured dies after the policy expires. Term insurance is generally purchased by those with a temporary need for life insurance, or by those with limited budgets. Term insurance may be appropriate for specific needs, including the needs of some business owners.

2.

Permanent Life Insurance :

Permanent life insurance is designed to provide life insurance
protection for your lifetime. A permanent life insurance policy can also accumulate a cash valuemoney that can be withdrawn or borrowed, in many cases with favorable tax treatment.

There are various permanent life insurance products available.

The main difference between these products are: The flexibility of premium payments How the cash value is invested The death benefit guarantees

There are three key types of permanent insurance you may want to consider:

Whole Life Insurance Universal Life Insurance Variable Universal Life Insurance

a.

Whole Life Insurance:

A type of permanent insurance, whole life insurance does not expire as long as premiums are paid, and it does not have to be renewed. The face amount of insurance and the premium are fixed and do not vary.

Premiums are level, the death benefit is guaranteed by the insurance company and the cash value increases every year (with whole life, the cash value is always increasing). Loans or withdrawals may be taken, which reduces the death benefit.
Premiums are typically due each year for the life of the insured. Whole life insurance policies often pay policy dividends. You can choose how to apply these policy dividends, subject to the terms and conditions of the policy. Typically, you can use the dividends to either pay premiums or purchase additional life insurance coverage. Keep in mind that the dividends are not guaranteed and if they are reduced or discontinued, you may have to pay the scheduled premium payments to keep the policy in effect.

Whole life insurance often appeals to those who are seeking a level premium, a fixed death benefit and a cash value. All guarantees are based on the claims paying ability of the issuing insurance company.

b.

Universal Life Insurance:

Universal life (UL) is designed to offer more flexibility than whole life. The policy owner has the option to change the timing and amount of the premium payments. You can make lump sum payments (subject to certain tax limitations) and, in some cases, you can skip payments. Of course, premiums paid must be sufficient to cover the cost of the policy, including the cost to provide the death benefit. Your payments are applied to the cash value, which earns an interest rate declared by the insurance company. The cost of the death benefit and administrative costs associated with the policy are deducted, typically monthly, from this cash value. The interest rate credited to the cash value is subject to change but will never fall below the minimum rate guaranteed in the contract. Most universal life contracts offer you a choice of death benefit, either:

The death benefit selected or

The death benefit selected plus the accumulated cash value.

All guarantees under a universal life policy are backed by the claims paying ability of the issuing insurance company.

c.

Variable Universal Life Insurance:

Universal life (UL) is designed to offer more flexibility than whole life. The policy owner has the option to change the timing and amount of the premium payments. You can make lump sum payments (subject to certain tax limitations) and,in some cases, you can skip payments. Of course, premiums paid must be sufficient to cover the cost of the policy, including the cost to provide the death benefit. Your payments are applied to the cash value, which earns an interest rate declared by the insurance company. The cost of the death benefit and administrative costs associated with the policy are deducted, typically monthly, from this cash value. The interest rate credited to the cash value is subject to change but will never fall below the minimum rate guaranteed in the contract.

Most universal life contracts offer you a choice of death benefit, either:
The death benefit selected or The death benefit selected plus the accumulated cash value.

All guarantees under a universal life policy are backed by the claims paying ability of the issuing insurance company.

What is anInsurable Interest?

A person has an "insurable interest" in something when loss or damage to it would cause that person to suffer a financial loss or certain other kinds of losses. For example, if the house you own is damaged by fire, the value of your house has been reduced, and whether you pay to have the house rebuilt or sell it at a reduced price, you have suffered a financial loss resulting from the fire.By contrast, if your neighbor's house, which you do not own, is damaged by fire,you may feel sympathy for your neighbor and you may be emotionally upset, but you have not suffered a financial loss from the fire. You have an insurable interest in your own house, but in this example you do not have an insurable interesting your neighbor's house.

A basic requirement for all types of insurance is the person who buys a policy must have an insurable interest in the subject of the insurance. You have an insurable interest in any property you own or which is in your possession.
For purposes of life insurance, everyone is considered to have an insurable interest in their own lives as well as the lives of their spouses and dependents. For property and casualty insurance, the insurable interest must exist both at the time the insurance is purchased and at the time a loss occurs. For life insurance, the insurable interest only needs to exist at the time the policy is purchased.

Double Insurance
Every insurer has a limit to the risk he can undertake. If a profitable proposal comes his way he may insure it even if the risk involved is beyond his capacity. Then, in order to safeguard his own interest, he may insure the same risk, either wholly or partially, with other insurers, thereby spreading the risk. This is called -re-insurance. Re-insurance can be resorted to in all kinds of insurance and a contract of re-insurance is also a contract of indemnity. The re-insurers are liable to pay the amount to the original insurer only if the latter has paid to the insured. Re-insurance is subject to all the conditions in the original policy and the re-insurer is entitled to all the benefits, which the original insurer enjoys under the policy.

When the insured insures the same risk with two or more independent insurers, and the total sum insured exceeds the value of the subject matter, the insured is, said to be over insured by double insurance. Both double insurance and over-insurance are perfectly lawful, unless the policy otherwise provides. A man may insure with as many insurers as he pleases and up to the full value of his interest with each one of them. If a loss occurs, he may claim payment from the insurers in such order as he thinks fit; but in no case he shall be entitled to recover more than his loss, because a contract of insurance is a contract of indemnity only.

Utmost Good Faith

Since insurance shifts risk from one party to another, it is essential that there must be utmost good faith and mutual confidence between the insured and the insurer. In a contract of insurance the insured knows more about the subject matter of the contract than the insurer. Consequently, he is duty bound to disclose accurately all material facts and nothing should be withheld or concealed. Any fact is material, which goes to the root of the contract of insurance and has a bearing on the risk involved. It is only when the insurer knows the whole truth that he is in a position to judge (a) whether he should accept the risk and (b) what premium he should charge. If that were so, the insured might be tempted to bring about the event insured against in order to get money.