Insurance_chapter2

If the insured has more than one policy for the same subject,he can claim under both the policies and hence receive more than what was actually lost.This is in accordance with the principle of indemnity

An insured has household insurance with LIC and laptop is insured with Allianz.Theft happens.Both the insurers will cover the laptop as per policy terms.However,the cost of claim should be shared by both insurers.This refers to the principle of:

Utmost good faith means that

Personal accident and sickness policies are benefit policies.

Identify the proximate cause of tintu mon's death:

Tintumon meets with an accident, break his leg, but don't develop septicaemia.
Tintumon goes home and come back 2 days later to a fracture clinic.
Whilst in fracture clinic Tintumon get Legionnaires disease from the air conditioning. He dies.

Identify the proximate cause of Sasi's death in the following situation:

While driving sasi suffer an accident breaking his leg.
Sasi get taken to hospital where as a result of surgery, septicaemia sets in and Sasi dies.

Identify the proximate cause for the damage to the wall in the following:

Lightning damaged a building and weakened a wall.
Shortly afterwards, the weakened wall was blown down by high winds

Following statement is not true regarding the Duty of disclosure in insurance.

a)Insured must make full and complete disclosure of all material facts relating to the contract.
b)The insured must disclose material facts at the proposal stage before the contract comes to exist.
c)Misleading an insured about policy cover and terms is a breach of utmost good faith.
d)The insurer has the right to ignore breach of good faith in which case the policy continues in force

If an item is not insured for its full value,then any claim payment will be reduced in proportion to the amount of underinsurance.This is the principle of:

a)Contribution is the right of an insurer following payment of premium to recover payment from a 3rd party responsible for the loss.
b)Subrogation is the right of insurer to call upon other insurers who are liable to the same insured to share the cost of an indemnity payment.