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Types Of Policies - Law of Insurance

   Posted On :  08.05.2018 05:12 am

Types Of Policies - Law of Insurance

Types Of Policies

Voyage Policy:

 
 
Where the contract is to insure the subject-matter “at and from” or from one place to another or others, the policy is called a voyage policy.
 

Time Policy:

 
 
Where the contract is to insure the subject-matter for a definite period of time, the policy is called a time policy.
 

Valued Policy:

 
 
A valued policy is a policy which specifies the agreed value of the subject-matter insured.
 

Unvalued Policy:

 
 
An unvalued policy is a policy which does not specify the value of the matter insured, but subject to the limit of the sum insured, leaves the insurable value to be subsequently ascertained (Sec. 30).
 

Floating Policy:

 
 
A floating policy is a policy which describes the insurance in general terms, and leaves the name or names of the ship or ships and other particulars to be defined by subsequent declaration.
 

Wager Or Honour Policy:

 
 
It is a policy in which the assured has no insurable interest or the insurer or underwriter is willing to dispense with the proof of interest.
 

Insurabele Interest:

 
 
The person who effects an insurance, or issues instructions for effecting it, must have an insurable interest in the subject-matter. The assured must have insurable interest at the time of the loss, though he may not have been interested when the insurance was actually effected.

Insurable Value:

 
 
Insurable value is the amount of the valuation of the insurable interest for the purpose of insurance.
 

Disclosure And Representation:

 
 
The assured must disclose to the insurer every material circumstance which is known to him, and he is deemed to know everything which he ought to know in the ordinary course of business.
 

Warranties:

 
 
A warranty, according to sec. 35 of the Act, is an undertaking by the assured that some condition shall be fulfilled, or that a certain thing shall be or shall not be done, or whereby he confirms or negatives the existence of a particular state of facts. A warranty may be express or implied. An express warranty is a condition which is set forth in the policy or attached thereto; and an implied warranty is an essential condition implied by law, though not written in the policy.
 

Sea-Worthiness:

 
 
The ship must be sea-worthy at the commencement of the voyage, or if the voyage is divisible into distinct stages, at the commencement of each stage.
 

Legality:

 
 
So far as the assured can control the matter, the adventure shall be carried out in a lawful manner.
 

The Voyage:

 
 
The subject-matter may be insured by a voyage policy “from a port” or “at and from” a port.
 

Perils


Perils are the risks which the underwriter agrees to take upon himself, and are inserted in the policy. Perils of the sea are all perils, losses, misfortunes of a marine character or a character incident to a ship as such. The purpose of the policy is to secure an indemnity against accidents which may happen, not against events which must happen.

 

Tags : Business Environment and Law-Law Of Insurance
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