The policies under motor insurance are as follows:
(i) Act liability only.
(ii) Third party only.
(iii) Comprehensive policy.
*** Comprehensive policy:
Motor insurance
Motor insurance got recently a great momentum. In
the older times, personal, who were injured or killed through the negligence of
the motorists, could not get financial redress either to them or to there legal heirs because no scheme of
insurance was present at that time. To mitigate the financial hardship caused to
the persons, the Motor vehicles Act. 1939, as amended from time to time, has
made it compulsory for the motorists to insure against the risk of liability to
third parties.
Element of fire insurance contract
(1). Feature of general Contract:
All the features of general contract are also
applicable to the fire insurance contract.
(a) Proposal:
The proposal for fire insurance can be made either
verbally or in writing. The proposes gives the necessary description of the
property to be insured. In practices the printed proposal from is used for the
purpose. Introduction, type of properties, value of properties, construction,
occupation, etc. are the various
Marine insurance policies
The marine insurance policy is issued only when the
contract has been finalized & it would be legal document of evidence of the
contract. The form of marine insurance policies has been taken from pretty old
times. There has been a slight change in the wordings of the policies. For
example, “Be it know that” is substituted for the words ` In the name of God,
Amen`.
Elements of Marine insurance contract
The marine insurance has the following essential
features which are also called fundamental principles of marine insurance.
(i) Features of general contract.
(ii) Insurable interest.
(iii) Utmost good faith.
Nature of marine insurance contract
Definition:
Marine insurance has been defined as a contract
between insurer & insured whereby the insurer undertakes to indemnify the
insured in a manner & to the interest thereby agreed, against marine losses
incident to marine adventure.
Section 2(13) A of the insurance Act 1938 defines
marine insurance as follows:
Nature of life insurance contract
Life insurance contract may be defined as the
contract, whereby the insurer in consideration of a premium undertakes to pay a
certain sum of money either on the death of the insured or on the expiry of a
fixed period. The definition of the life insurance contract is enlarged by
Section 2(ii) of the insurance act 1933 by including annuity business. Since,
the life insurance contract is not an indemnity contract; the undertaking on
the part of the insurer is an absolute one to pay a definite sum on maturity of
policy at the death or an amount in installment for a fixed period or during
the life.
Kinds of insurance
The insurance can be divided from two angles:
first, from the business point of view & second, from the risk point of
view.
*** Business point of view:
The insurance can be classified into three
categories from business point of view: (i) Life insurance (ii) General
insurance (iii) Social insurance.
Functions Of insurance
The functions of insurance can be studied into two
parts: (i) Primary Functions (ii) Secondary Functions.
Primary Functions:
(i) Insurance provides certainty: insurance Provides
certainty of payment at the uncertainty of loss. The uncertainty of loss can be
reduced by better planning and administration. But, the insurance relieves the
person from such difficult task. Moreover, if the subject matters are not
adequate, the self- provision may prove costlier. There are different types of
uncertainty in a risk. The risk will occur or not, when will occur, how much
loss will be there.
Definition of insurance
The definition of insurance can be made from two
points: (i) Functional definition (ii) Contractual definition.
Functional definition: insurance is a
co-operative device to spread the loss caused by a particular risk over a number
of people, who are exposed to it & who agree to insurance themselves
against the risk. Thus the insurance is (A) a co-operative device to spread the
risk. (B) The system to spread the risk over a number of people who are insured
against the risk. (C) The principle to share the loss of each member of the
society on the basis of probability of loss to their risk. (D) The method to provide security against
losses to the insured.
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