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Law of insurance
 

Law of insurance

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    Law of insurance Law of insurance Presentation Transcript

    • LAW OF INSURANCE CONTRACT OF INSURANCE Insurer & Insured Premium Policy Subject matter of insurance &insurable interest Perils insured against Various kinds of insurance—Life, Fire, marine, personal accident Nature of contract of insurance
    • Fundamental elements of Insurance
      • 1) Utmost good faith
      • 2) Indemnity
      • 3) Insurable interest
      • 4) Causa proxima
      • 5) Risk must attach
      • 6) Mitigation of loss
      • 7) Contribution
      • 8) Subrogation
      • 9) Period of insurance
      • Premium
      • Return of premium
      • Reinsurance & double insurance
    • LIFE INSURANCE
      • The contracts of life insurance in India are governed by the
      • Insurance Act,1938 & the Life insurance Corporation Act, 1956.
      • The life insurance business in India was nationalized on 19.01.1956
      • LIFE INSURANCE CONTRACT
      • Insurance & Assurance --- Distinction
      • Certainty of event
      • Indemnity
      • Valuation of insurable interest
      • Time of insurable interest
      • Duration of contract of insurance
    • Insurable Interest
      • The assured must have insurable interest in the life insured, otherwise the contract of insurance is void. (Should be there at the time of the contract of insurance)
      • Following persons are held to have insurable interest
      • 1 In the life of a relative by whom he is supported
      • 2 A creditor has insurable interest in the lie of his debtor upto the amount of the debt at the time of the issue of policy
      • 3 Servant has insurable interest in the life of his employer to the extent of salary for the term of service
      • 4 Partner has insurable interest in the life of other partners
      • Right of insurer to avoid Life policy– Contract of life insurance like other contracts of insurance, is a contract of uberrimae fidei
      • (exception to the above)
    • TYPES OF POLICIES
      • 1 Endowment Policy
      • Children’s endowment Policy
      • 2 Whole - Life Policy
      • 3 Limited – payment Life Policy
      • 4 Joint Life Policy
      • 5 Convertible whole life Policy
      • 6 Anticipated Policy
      • 7 Annuity Policy
      • 8 Sinking Fund Policy
      • 9 Junta Policy
      • SURRENDER VALUE
      • LOAN ON POLICIES
      • PROOF OF AGE & DEATH
      • SUICIDE
      • ASSIGNMENT & NOMINATION
    • FIRE INSURANCE
      • The law relating to fire insurance in India is contained in the Insurance Act, 1938 & The General Insurance Business Nationalization Act, 1972.
      • Contract of Fire Insurance
      • Characteristics of a Fire Insurance Contract
      • -- It is a contract of Indemnity
      • -- It is a contract of uberrimae fidei
      • -- The assured must have insurable interest in the subject matter & it must be capable of valuation in terms of money
      • -- The risk covered is the loss resulting from fire or some cause which is the proximate cause of the loss
      • -- It is subject to the principles of subrogation & contribution
      • -- It is a contract from year to year
    • AVERAGE CLAUSE IN A FIRE POLICY---such proportion of actual loss as the sum insured bears to the total value of the property
      • Insurable Interest (At the time of the contract & at the time of loss)
      • FIRE & LOSS by FIRE--Following losses are caused proximately by fire
      • -- necessary consequence .If there had been fire, it would not have happened
      • -- reasonable consequence .Results in the ordinary course of events from the happening of fire
      • -- Loss caused by water used to extinguish fire destroying property
      • -- Loss arising as a consequence of removal of the property from the building or loss due to theft during the confusion caused by the fire
      • Rights of Insurer
      • Right of avoiding the contract for non-disclosure of material fact
      • Right of control over the property
      • Right of entering the property
      • Right of subrogation
      • Right to salvage
      • Right of reinstatement & Right of contribution
    • Types of Fire Policy
      • Specific policy—Upto a specific amount less than the real value
      • Comprehensive Policy—All in one Policy
      • Valued Policy—not a contract of indemnity
      • Floating Policy – property at different places
      • Replacement or Reinstatement Policy
    • MARINE INSURANCE
      • The law relating to it is codified in the Marine Insurance Act, 1963
      • CONTRACT OF MARINE INSURANCE
      • Marine Adventure
      • Maritime Perils
      • Insurable Interest–At the time of the loss
      • Lost or not Lost
      • Insurable value – ship
      • freight
      • goods
      • Any other subject matter
      • Disclosure & Representations
    • Marine Policy
      • TYPES OF MARINE POLICIES:
      • 1 Voyage Policy—at & from one place to another
      • 2 Time Policy--
      • 3 Mixed Policy– combination of time & voyage policy
      • 4 Valued Policy—specifies the agreed value of the subject matter
      • 5 Open or unvalued policy—The value to be subsequently ascertained
      • 6 Floating Policy– only the amount. Other details are subsequently
      • 7 Wagering policy—void as assured has no insurable interest. Insurer meets his obligation out of consideration of honor.