The general rule is the except in the case of life assurance, a contract of insurance is a contract from year to year only.
Contract
Of Insurance One From Year To Year:
The general rule is the except in
the case of life assurance, a contract of insurance is a contract from year to
year only.
Premium:
The premium is the price for the
risk undertaken by the insurer. It is the consideration for the insurance.
Days Of
Grace:
The days of grace are the days
allowed by the insurance company after the expiry of the stipulated period of
insurance during which the assured can pay the premium in order to continue or
to renew the policy of insurance.
Policy:
The policy is a formal and
enforceable stamped document signed and issued by the insurance company embodying
the terms of the contract between the parties.
Interim
Receipt, Certificate Or Cover Note:
A cover note or interim
certificate is a document which the insurance company, on receiving the
proposal, may issue pending the execution of a policy or the final decision of
the directors as to acceptance or rejection of the proposal.
Re-Insurance:
Re-insurance is a contract which
insures the thing originally insured, and by which an insurer is to be
indemnified against any loss which he may sustain by reason of being himself
compelled to pay the assured under the original contract of insurance.
Double
Insurance:
When the same subject-matter is
insured with two or more insurers and the total sum insured exceeds the actual
value of the subject-matter, it is known as double insurance and it amounts to
over-insurance.
Subrogation:
The right of subrogation is a
necessary corollary of the principle of indemnity and is essential for its
preservation.
Contribution:
Contribution is the right of the
insurers to claim from others some payment towards the loss, and arises only
where there is double insurance.
Marine
Insurance
The law relating to marine
insurance is found in the Marine Insurance Act, 1963. A contract of marine
insurance is an agreement whereby the insurer undertakes to indemnify the
assured, in the manner and to the extent thereby agreed, against marine losses,
that is to say, the losses are incidental to marine adventure (Sec.3). There is
a marine adventure when (i) any insurable property is exposed to maritime
perils; the earnings or acquisition of any freight, passage money, commission,
profit or other pecuniary benefit, or the security for any advances, loans, or
disbursements is endangered by the exposure of insurable property to maritime
perils; (3) any liability to third party may be insured by the owner of, or
other person interested in or responsible for, insurable property by reason of
maritime perils [Sec. 2(e)].
Tags : Business Environment and Law-Law Of Insurance
Last 30 days 237 views