Policies - Law of Insurance
Policies:
Whole Life Policy: which matures only at the death
whenever it may occur.
Endowment Policy: in which the sum insured is
payable after the expiration of
certain term of years if the policy-holder is alive, or at his death if he dies
previously.
Joint Life Policies: are
issued under which the sum assured is payable
at the death of the first of the two lives.
Survivorship Policy: is also
granted under which the sum assured is
payable at the death of the last or survivor of two lives.
Surrender Value:
The amount which the insurers are
prepared to pay in total discharge of the contract, in case the assured wishes
to surrender his policy and extinguish his claim upon it.
Loans On Policies:
Where a policy has a surrender
value, it also has a loan value, and assurance companies usually lend 95 per
cent of the surrender value. Paid-Up Policy Value:
The amount to which the sum
assured would be reduced at any time, if the assured requested a rearrangement
of his contract so that no further premium should be payable. Principle Of Good Faith And
Sec.45 Of Insurance Act:
The general rule is that in all
kinds of insurance, the assured must disclose everything which is likely to
affect the judgment of the insurer and what is stated must be truthful. Accident Insurance:
An injury is accidental where it is the natural
consequence of an unexpected cause, or the unexpected consequence of a natural
cause. Accident insurance consists of three categories:- - Personal accident insurance, of
three, including insurance against sickness;
- Property insurance, including burglary, fidelity,
insolvency, etc
- Liability insurance, including
motor insurance, workmen’s compensation insurance, etc.
Tags : Business Environment and Law-Law Of Insurance
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