module 1 ins law - Copy

Question 1

and

Answer 1

more has seen it been opened up substantially. In 1993, the government set up a

Question 2

The

Answer 2

Authority has the power to frame regulations under section 114A of the Insurance

Question 3

Indian

Answer 3

Insurance market include agents (individual and corporate), brokers, surveyors and

Question 4

Company Ltd,

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Max Bupa Health Insurance Company Ltd, Religare Health Insurance

Question 5

Company Ltd and Cigna

Answer 5

TTK Health Insurance Company Ltd. There are two more

Question 6

contingency”.

Answer 6

In its legal aspects it is a contract whereby one person agrees to indemnify

Question 7

the

Answer 7

property. The condition is reverse of ordinary commercial contracts and the seller is

Question 8

the need for

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Utmost Good Faith on the part of the proposer. It may be said here that the

Question 9

insured

Answer 9

with another company and the previous claim experience. Similarly, a medical

Question 10

examination

Answer 10

may not reveal the previous history i.e. details of past illness, accidents etc.

Question 11

e.g., fire

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extinguishing Appliances discount in fire policies or that Earthquake risk is not

Question 12

contracts Utmost

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Good Faith means that “each party to the proposed contract is legally

Question 13

made in

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an existing contract then this duty of full disclosure recovers in respect of the

Question 14

had

Answer 14

made false representation or suppressed the material facts is undoubtedly on the

Question 15

making the

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statement that it was false or that fact which ought to be disclosed has been

Question 16

relationship

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recognized under the law between the insured and the subject matter of

Question 17

evaluating

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insurable interest. Every person has an insurable interest in his own life. A

Question 18

Interest

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in life & property - where it is possible to predetermine the extent of Insurable

Question 19

Insurers

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protect themselves by taking a receipt from the person receiving the amount

Question 20

value

Answer 20

and will indemnify the insured to this extent in case of total loss. Such policies are

Question 21

type of policy

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where the principle of strict indemnity is not applied is the Reinstatement

Question 22

current replacement value

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and the Insurer agrees that in the event of a total loss he shall

Question 23

policy documents the word

Answer 23

indemnity may not be used but the courts will follow this

Question 24

meet the

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losses of the few who suffer damage, so it is reasonable to conclude that every

Question 25

usually

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lies with the bereaved or injured party but the law recognises that if another has

Question 26

the right to

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recover damages. In case the insured after having received indemnity also

Question 27

Principle

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of Insurance can be traced to the judgement given in the case of Casletlan V

Question 28

doctrine in favour of

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the underwriters or insurers, in order to prevent the insured from

Question 29

recovering more than a full

Answer 29

indemnity; it has been adopted solely for that reason.”

Question 30

Subrogation does not apply to life and

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personal accidents as these are not contracts of

Question 31

million

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from Mr. Tom, then the insurance company will retain $ 1 million (which it has

Question 32

policies

Answer 32

be identical to one another. What is important is that there should be an

Question 33

overlap

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between policies, i.e. the subject matter should be common and the peril

Question 34

the loss

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as per the terms and conditions of the individual policy and pay the claims

Question 35

the

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proximate cause has to be chosen the choice should be of the most predominant and

Question 36

payable.

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However, if reverse were the case and the chain was started by an excepted or

Question 37

policy

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earthquake is not a covered risk, hence the claim will not be payable. To really

Question 38

understand the

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complexities of proximate cause and its proper identification one must go

Question 39

trawler

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vessel gets to collide, which result in further delay for few days. Because of this

Question 40

order

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to extricate himself ought not to be weighed in nice scales at the instance of the