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Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium, to pay the other party in case of happening of a certain event. Every contract of insurance is uberrimae fidei, one which requires atmost good faith on the part of both the insurer and insured. An insurer will only be liable to pay a claim under an insurance contract if the loss that gives rise to the claim was proximately caused by an insured peril
Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium, to pay the other party in case of happening of a certain event. Every contract of insurance is uberrimae fidei, one which requires atmost good faith on the part of both the insurer and insured. An insurer will only be liable to pay a claim under an insurance contract if the loss that gives rise to the claim was proximately caused by an insured peril
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Insurance is a contract between two parties whereby one party called insurer undertakes in exchange for a fixed sum called premium, to pay the other party in case of happening of a certain event. Every contract of insurance is uberrimae fidei, one which requires atmost good faith on the part of both the insurer and insured. An insurer will only be liable to pay a claim under an insurance contract if the loss that gives rise to the claim was proximately caused by an insured peril
Copyright:
Attribution Non-Commercial (BY-NC)
Verfügbare Formate
Als PPTX, PDF, TXT herunterladen oder online auf Scribd lesen
in exchange for a fixed sum called premium, to pay the other party in case of happening of a certain event. V 2tmost good faith V Proximate cause V Insurable interest V Indemnity V Contribution V Subrogation V Rvery contract of insurance is a contract Dzë {, one which requires atmost good faith on the part of both the insurer & insured.
V Àood faith Ȃ î
ë
V Àood faith Ȃ Declaration, Concealment &
warranty. Duty of disclosure operates at
V Inception - until the date cover is confirmed
by the Insurers. V Renewal - up to the renewal date V Mid term alterations - until the Insurer confirm cover in respect of the alterations
Rg: Age of a person, health details, status of a
building. V aon disclosure or concealment V Innocent misrepresentation V Intentional misrepresentation
Any one of the above allows for declaration
of the contract void.
Rg: The Highlands insurance Vs Continental co.
V An insurer will only be liable to pay a claim under an insurance contract if the loss that gives rise to the claim was proximately caused by an insured peril . V This means that the loss must be directly attributed to an insured peril without any break in the chain of causation. V Compensation will only be paid, if the risk that is covered in the policy occurs. V Rxample 1: if the insurance policy states that the house is covered for fire and theft and it is totally or partially destroyed by a flood no compensation will be paid. Rxample 2: V An insured sustained an accident while hunting. Due to shock and weakness, he was unable to walk and whilst lying on wet ground, he contracted cold which developed into pneumonia causing death ultimately. V The proximate cause was considered to be the accident and not the pneumonia, the disease, which was only a remote cause. The claim was payable under personal accident policy. V Insurable interest exists when an insured person derives a financial or other kind of benefit from the continuous existence of the insured object.
V A person has an insurable interest in something when
loss-of or damage-to that thing would cause the person to suffer a financial loss or other kind of loss.
V Basic requirement for all type of insurance is the person
who buys the policy must have an insurable interest in the subject of the insurance. V Rxample : fire damage of house. V undamental principle of insurance. V The principle of Indemnity states that under the policy of insurance, the insured has to be placed after the loss in the same financial position in which he was immediately before the loss. V Signifies that insured who suffers a loss must be paid to the extend of his loss and not to be allowed to make profit or loss out of it. @
V Claim cant exceed the actual loss V Insurer has the leverage in choosing the method of reimbursement. V Rxample :If you have a four year old car and it is stolen, the insurance company will only give you the current value of the car and not the cost of the car when it was new.
V Rqual ownership of a property.
V The principle of contribution allows the insured to make a claim against one insurer who then has the right to call on any other insurers liable for the loss to share the claim payment. V aormally the insurers seek to control additional insurances at the proposal stage itself. V Does not apply to personal accident policies V Rxample: ire insurance on a building for $1million from two different carriers. V Subrogation means the insurance company has the legal right to claim compensation from any other party that caused the accident. V Subrogation is the substitution V Does not apply to personal insurance. V If the assured got certain compensation from third party before being fully indemnified by the insurer can pay only the balance of the loss. V Rxample: A client makes a claim under his/her own comprehensive policy for damage done to his vehicle by another person. His/her insurance company pay the claim but persue the negligent third party for the cost of the claim they have paid. V These are the basic principles of insurance.