What is marine Insurance? What risks are usually covered by a marineInsurance policy. Discuss the various classifications or types of ocean marine insurancepolicies. 3 What are the various types of losses in ocean marine Insurance.What is marine insurance Discuss the main essentials of'Ocean MarineInsurance Contract.
What is fire Insurance? Give in brief the essentials of fire insurancecontract. Explain the nature of fire insurance policy What kinds of losses are includedin the fire insurance policy and what kind of losses can fiever be included?
7. Explain in detail as to how a fire insurance policy is effected. A case ofbuilding be considered for fire insurance
Discuss in brief the various types of fire' insurance policy?
9. If an insured factory catches fire, how the claim of the Insurec is settted bythe insurer.
What is manne insurance?
Differentiate between marine insurance and fire insurance.
Explain in brief three types of marine insurance.
Examine three essentials of marine insurance,
"A fire insurance policy is a contract of indemnity" - Explain.
How is the fire claim settled.
State whether the following statements are true or false fi) Fire insurance contracts are for long period,A contract of marine insurance is a contract of indemnity
All contracts of insurance except life insurance are "the contacts of indemnity.
The rate of premium is uniform for all kinds of fire insurance, (v) The insurance contract is founded on the basic of good faith.
In fire insurance the insurable interest must exist at the time of contract and also at the time of loss.
The payment of fire premium is in easy installments The risk in fire insurance is
Friday, November 20, 2009
Wednesday, November 18, 2009
. THE FIRE CLAIM AND ITS SETTLEMENT
.THE FIRE CLAIM AND ITS SETTLEMENT.......
purpose of immediate notice clause in the contract is to enable the
investigate the loss while it is still warm.
2. Claim Form. The insurance company on receipt of the notice will supplya claim form to the insured. The policy-holder is required to furnish a completenventory of the destroyed, damaged, undamaged property, showing in details
quantities, costs, actual cash value and the amount of loss claimed.
Evidence. The insured should try to produce the documentary proof ofthe actual loss as far as possible to the company. The books of account, bills etc.if attached with the claim help the company in the early settlement of claims.
Proof of loss. In order to determine the insurer's liability, the policyholder is also required to furnish a signed and sworn statement of the (1) timeand origin of loss (2) the interest of the insured (3) the cash value of the loss (4)any change in the title of the property insured (5) by whom and for what purposethe building was occupied at the time of loss etc. etc.
Inspection and assessment of loss. The insurance company sends itsspecialized surveyor to examine and determine the loss in the light of documentsand forms received from the policy-holder.
Time limit of paying claims. The insurer is to pay the actual loss,remaining within the limits of the insured policy. The amount shall be payablesixty days after proof of loss is received from the policy-holder.
Time Limit for bringing suit. If there is a dispute in the settlement ofclaim, the parties involved in the insurance contract, can file a suit within the timelimit prescribed in the contract.
Arbitration. The insurance companies normally avoid to file a suit in thecourt in case of disagreement between the parties. The contract usually providesa clause that in case of a dispute, the matter shall be referred to a Board ofarbitration containing one nominee of the insurer and one of the insured. Theaward given by the board is binding on both the parties. In case there isdisagreement among the arbitrators, the case is referred to the umpire whosejudgment shall be final.
purpose of immediate notice clause in the contract is to enable the
investigate the loss while it is still warm.
2. Claim Form. The insurance company on receipt of the notice will supplya claim form to the insured. The policy-holder is required to furnish a completenventory of the destroyed, damaged, undamaged property, showing in details
quantities, costs, actual cash value and the amount of loss claimed.
Evidence. The insured should try to produce the documentary proof ofthe actual loss as far as possible to the company. The books of account, bills etc.if attached with the claim help the company in the early settlement of claims.
Proof of loss. In order to determine the insurer's liability, the policyholder is also required to furnish a signed and sworn statement of the (1) timeand origin of loss (2) the interest of the insured (3) the cash value of the loss (4)any change in the title of the property insured (5) by whom and for what purposethe building was occupied at the time of loss etc. etc.
Inspection and assessment of loss. The insurance company sends itsspecialized surveyor to examine and determine the loss in the light of documentsand forms received from the policy-holder.
Time limit of paying claims. The insurer is to pay the actual loss,remaining within the limits of the insured policy. The amount shall be payablesixty days after proof of loss is received from the policy-holder.
Time Limit for bringing suit. If there is a dispute in the settlement ofclaim, the parties involved in the insurance contract, can file a suit within the timelimit prescribed in the contract.
Arbitration. The insurance companies normally avoid to file a suit in thecourt in case of disagreement between the parties. The contract usually providesa clause that in case of a dispute, the matter shall be referred to a Board ofarbitration containing one nominee of the insurer and one of the insured. Theaward given by the board is binding on both the parties. In case there isdisagreement among the arbitrators, the case is referred to the umpire whosejudgment shall be final.
Tuesday, November 17, 2009
FIRE INSURANCE POLICY AND ITS TYPES
FIRE INSURANCE POLICY AND ITS TYPES
A fire insurance policy is a contact of indemnity. It may be defined as "a contract by which the insurer in consideration of premium paid by the
insured agrees to indemnify him against any accidental
property due to fire, up to the sum agreed upon with him in the fire pc' -
Types of Policies. The main types of insurance policies are as l
Specific Policy. In case of specific policy, the insurance .make good the loss to the insured to the maximum extent of the face va .policy. For instance, a house valuing Rs. 5 lac is insured for Rs. 3 lac only If thehouses catches fire and is burnt to ashes, the insured can claim Rs. 3 lac only Itcannot realise more amount from the company.
Valued Policy. A valued policy is one in which the insurer has to pay thefull value of the subject matter (goods, securities etc)- If the building is destroyedby fire, the insured has not to prove the actual value of the loss. The valued policy
is against the principle of indemnity and so are not commonly issued.
3. Floating policy. A floating policy is that which covers several items ofgoods lying in different localities under one sum and for one premium. Thefloating policy is taken by big manufacturers whose goods are stored in different
localities.
4, Average Policy. An average policy is that which contains an average clause. The average clause lays down that if the property is under insured, the insurer will bear only that part of actual loss as his insurance bears to the total value of the property. For example, a property is insured for Rs. 40 thousand as against its value of Rs. 80 thousand. If the loss due to fire is assessed at Rs, 20 thousand: the claim will be settled as under:
. Insured amount x Actual loss Value of property
40000 x 20000Claim = 80000 = Rs" 10<000
In this case, the insured is penalized for under insurance.
Comprehensive policy. In comprehensive policy alhjypes of risks suchas fire, burglary, riots, strikes, explosion, lightning, etc are covered
Blanket policy. Under blanket policy, both fixed and current assets ofthe business are covered under one insurance.
Loss of profit policy. Under this policy, the insured is indemnifiedagainst' the loss of profits caused by any interruption of business by fire.
Reinstatement of policy. Under this policy, the insurer pays theamount which is required to reinstate the assets or property destroyed. Theinsurer while calculating the amount of claim does not deduct the amount ofdepreciation from the original value of the asset.
A fire insurance policy is a contact of indemnity. It may be defined as "a contract by which the insurer in consideration of premium paid by the
insured agrees to indemnify him against any accidental
property due to fire, up to the sum agreed upon with him in the fire pc' -
Types of Policies. The main types of insurance policies are as l
Specific Policy. In case of specific policy, the insurance .make good the loss to the insured to the maximum extent of the face va .policy. For instance, a house valuing Rs. 5 lac is insured for Rs. 3 lac only If thehouses catches fire and is burnt to ashes, the insured can claim Rs. 3 lac only Itcannot realise more amount from the company.
Valued Policy. A valued policy is one in which the insurer has to pay thefull value of the subject matter (goods, securities etc)- If the building is destroyedby fire, the insured has not to prove the actual value of the loss. The valued policy
is against the principle of indemnity and so are not commonly issued.
3. Floating policy. A floating policy is that which covers several items ofgoods lying in different localities under one sum and for one premium. Thefloating policy is taken by big manufacturers whose goods are stored in different
localities.
4, Average Policy. An average policy is that which contains an average clause. The average clause lays down that if the property is under insured, the insurer will bear only that part of actual loss as his insurance bears to the total value of the property. For example, a property is insured for Rs. 40 thousand as against its value of Rs. 80 thousand. If the loss due to fire is assessed at Rs, 20 thousand: the claim will be settled as under:
. Insured amount x Actual loss Value of property
40000 x 20000Claim = 80000 = Rs" 10<000
In this case, the insured is penalized for under insurance.
Comprehensive policy. In comprehensive policy alhjypes of risks suchas fire, burglary, riots, strikes, explosion, lightning, etc are covered
Blanket policy. Under blanket policy, both fixed and current assets ofthe business are covered under one insurance.
Loss of profit policy. Under this policy, the insured is indemnifiedagainst' the loss of profits caused by any interruption of business by fire.
Reinstatement of policy. Under this policy, the insurer pays theamount which is required to reinstate the assets or property destroyed. Theinsurer while calculating the amount of claim does not deduct the amount ofdepreciation from the original value of the asset.
Monday, November 16, 2009
HOW A FIRE INSURANCE POLICY IS AFFECTED
HOW A FIRE INSURANCE POLICY IS AFFECTED...
The following procedure is adopted in taking a fire insurance policy.
1. Selection of Insurance Company. A person who wants to get his
property insured against fire is to select the insurance company which has a sound financial backing and enjoys a goods reputation in the early settlement of claims in the event of a loss.
Rates of Premium. The companies which give coverage to insurancenormally combine and do not compete among themselves in cutting down therates of premium. The premium rates, therefore, usually do not differ.
Proposal Form. The person who wants to get his property insuredagainst fire or wants a "package" insurance, will furnish the facts in 'Utmost GoodFaith'. There will not be any concealment of facts on the part of the insurer as wellas incurred
Survey of the property. Before insuring the property against fire, theexpert surveyors engaged by the company inspects the property and prepares anestimate of the risk involved.
Acceptance of proposal. If the company is satisfied that the person isnot insuring the property for any profit motive, it on the basis of proposal form andthe surveyor's report, insurers the property and fixes up the premium on the facevalue of the policy. When the premium is paid by the insured, the property isinsured from that date.
Rate of Premium. The rate of premium is not uniform for all kinds ofproperty The rate of the premium is determined by the type of premises wherethe goods are kept. If the building is fire proof, the rate of premium will be low. Incase, the goods kept in a building are of such a nature that they can catch fireeasily, the rate of premium will be high.
Cover Note. On receipt of the premium, the company issues a CoverNote to the insured stating that the contract has been completed and the propertyhas been insured.
Issuance of Policy. The company after the completion of all formalitiesprepares the fire policy, giving their in full detail of the property and sends it to the
insured.
Sunday, November 15, 2009
WHAT IS FIRE INSURANCE
WHAT IS FIRE INSURANCE..
Fire insurance is a contract between the insurance company and the policy-holder wherein the insurance company undertakes in exchange for a premium to indemnify the loss or damage caused to the specified property of the insured by fire or lightning. The contract will be for a specified period of time and the company will compensate for the actual loss caused by fire which in no case exceeds the maximum limit of the insured amount.
Essentials of a Fire Insurance Contract
The main essentials of fire Insurance contract ar as follows:
1. Contract of indemnity. Fire insurance like the marine insurance is acontract of indemnity. The insured can claim the actual loss caused to theproperty by fire, remaining of course within the insured amount.
The insured cannot make a profit from contract. A policy-holder cannotget an overvalued fire policy of his property, This will encourage the insured to gethis property burned to ashes and then claim the full insured amount and make aprofit out of it.
Prescribed period. The fire insurance contract is for a specified period oftime usually for one year. It is annually renewed by the payment of a freshpremium.
The limit of lability. In case the insured property is destroyed by fire, thepolicy holder cannot claim the market value of the property. The claim isdetermined by measuring the actual loss or damage. The amount which appearson the face value of the policy expresses the limit of liability of the company.
Payment of the claim. The payment of the insured property damaged byfire as per contract is made to the person or persons named in the policy asinsured.
Interest of the policy. If the fire insurance contract covers the building,then the claim in the even of loss will be met of the building only. If the policygives a "Package" or multi-insurance coverage in one policy, covering fire, theft,burglary, car liability, etc. etc.. and only one premium is paid for this 'packagepolicy', then in the event of loss, the policy holder is indemnified (paid) for the totalloss remaining within the limit of the liability of the money.
Assignment of Policy. The insured under the contract cannot assign hisinterest in the policy to any third party without getting prior consent of thecompany. The assignment without the consent of the company is void at law.
• 8. Consequential loss. The consequential loss (business interruption unless specifically covered under the contract are not a part of fire loss.
9. Direct loss and damage. The fire insurance contract also s: loss to be covered by the policy must be a direct loss i.e.. the f«re rrust be immediate cause of the loss
10. Insurable Interest. In a fire insurance contract, the insured must havemsuraWe nterest in the subject matter of the policy failing which the contract isvoid at law. Insurable interest is created when in the event of a loss, the insured
a financial loss himself and when compensated by the company, he is financially restored to his previous position.
11. Absolute good faith. The insurer and the insured will place all the cardsat the table and will not willfully conceal or misrepresent any material fact fromeach other. The concealment or fraud before or after a loss will make the policyvoid at law.
Fire insurance is a contract between the insurance company and the policy-holder wherein the insurance company undertakes in exchange for a premium to indemnify the loss or damage caused to the specified property of the insured by fire or lightning. The contract will be for a specified period of time and the company will compensate for the actual loss caused by fire which in no case exceeds the maximum limit of the insured amount.
Essentials of a Fire Insurance Contract
The main essentials of fire Insurance contract ar as follows:
1. Contract of indemnity. Fire insurance like the marine insurance is acontract of indemnity. The insured can claim the actual loss caused to theproperty by fire, remaining of course within the insured amount.
The insured cannot make a profit from contract. A policy-holder cannotget an overvalued fire policy of his property, This will encourage the insured to gethis property burned to ashes and then claim the full insured amount and make aprofit out of it.
Prescribed period. The fire insurance contract is for a specified period oftime usually for one year. It is annually renewed by the payment of a freshpremium.
The limit of lability. In case the insured property is destroyed by fire, thepolicy holder cannot claim the market value of the property. The claim isdetermined by measuring the actual loss or damage. The amount which appearson the face value of the policy expresses the limit of liability of the company.
Payment of the claim. The payment of the insured property damaged byfire as per contract is made to the person or persons named in the policy asinsured.
Interest of the policy. If the fire insurance contract covers the building,then the claim in the even of loss will be met of the building only. If the policygives a "Package" or multi-insurance coverage in one policy, covering fire, theft,burglary, car liability, etc. etc.. and only one premium is paid for this 'packagepolicy', then in the event of loss, the policy holder is indemnified (paid) for the totalloss remaining within the limit of the liability of the money.
Assignment of Policy. The insured under the contract cannot assign hisinterest in the policy to any third party without getting prior consent of thecompany. The assignment without the consent of the company is void at law.
• 8. Consequential loss. The consequential loss (business interruption unless specifically covered under the contract are not a part of fire loss.
9. Direct loss and damage. The fire insurance contract also s: loss to be covered by the policy must be a direct loss i.e.. the f«re rrust be immediate cause of the loss
10. Insurable Interest. In a fire insurance contract, the insured must havemsuraWe nterest in the subject matter of the policy failing which the contract isvoid at law. Insurable interest is created when in the event of a loss, the insured
a financial loss himself and when compensated by the company, he is financially restored to his previous position.
11. Absolute good faith. The insurer and the insured will place all the cardsat the table and will not willfully conceal or misrepresent any material fact fromeach other. The concealment or fraud before or after a loss will make the policyvoid at law.
Friday, November 13, 2009
FIRE INSURANCE
Fire is a great friend of human being. When it misbehaves, it also proves to be a destructive agent of the enemy The damage caused by fire to the property of a person reduces him to utter poverty. Here comes the insurance to the rescue of a person by giving protection against the loss caused by fire. The insurance company, on payment of period payment (premium) compensates the actual loss incurred to the insured property. It does not exceed the maximum amount of the insured amount in any case. The fire insurance policy is also one of oldest method of insurance. It has gained popularity in all the developing and developed countries of the world.
Thursday, November 12, 2009
ESSENTIALS OF OCEAN MARINE INSURANCE CONTRACT
ESSENTIALS OF OCEAN MARINE INSURANCE CONTRACT
"A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in manner and to the extent thereby agreed, against the losses incidental to marine adventure". The essentials of ocean marine insurance contract are (1) Insurable interest (2) Disclosure of facts (3) Seaworthiness of the ship (4) Legality of voyage (5) Non deviation.
Insurable Interest. The insured must have insurable interest in theproperty insured. In the event of loss, if the facts are found otherwise, the contractwill be void at law.
Disclosure of all facts. An essential feature of the marine insurancecontract is that every contract or insurance must disclose all the facts. If theprinciple of 'Utmost Good Faith' is not observed by either party, the affected partymay sue and declare the contract void,
Seaworthiness of the ship. The-insurer shall promise to the insured thatthe ship is in a good condition and can face the ordinary perils of the sea.
Legality of voyage. The insured must also get a guarantee that thevoyage of the ship is lawful. The illegality of the venture makes the contract ofinsurance void.
Non-Deviation. The policy holder should also get a guarantee from theinsurance company that the ship will not part or deviate from the prescribed route
"A contract of marine insurance is a contract whereby the insurer undertakes to indemnify the insured, in manner and to the extent thereby agreed, against the losses incidental to marine adventure". The essentials of ocean marine insurance contract are (1) Insurable interest (2) Disclosure of facts (3) Seaworthiness of the ship (4) Legality of voyage (5) Non deviation.
Insurable Interest. The insured must have insurable interest in theproperty insured. In the event of loss, if the facts are found otherwise, the contractwill be void at law.
Disclosure of all facts. An essential feature of the marine insurancecontract is that every contract or insurance must disclose all the facts. If theprinciple of 'Utmost Good Faith' is not observed by either party, the affected partymay sue and declare the contract void,
Seaworthiness of the ship. The-insurer shall promise to the insured thatthe ship is in a good condition and can face the ordinary perils of the sea.
Legality of voyage. The insured must also get a guarantee that thevoyage of the ship is lawful. The illegality of the venture makes the contract ofinsurance void.
Non-Deviation. The policy holder should also get a guarantee from theinsurance company that the ship will not part or deviate from the prescribed route
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