(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
information which are required by the insurer.
The answers to these questions must be completely correct. The assured must
disclose all the material facts & should observe utmost good faith. The
description of the subject matter of insurance is the basis of the contract for
assessing the risk & fixing the premium.
(b) Acceptance:
On receipt of the proposal form, the insurer will
assess the risk. Sometimes, when the contents & subject-matters are not of
very high amount, the insurer may accept on the basis of proposal forms only.
When the subject-matters is of larger magnitude & where the hazard involved
is of a variable or unknown nature, the insurer may send his surveyor to survey
the property. The surveyors being expert in the field of insurance evaluation
will consider the proposal in the light of this report. The unknown proposes
are required to submit an evidence of respectability. The insured is required
to submit a certificate from some known & respectable person about honesty
& integrity. AS soon as the proposal is accepted, the assured is informed
about the decision.
(c) Commencement of risk:
The risk commences as soon as the contract is
completed provided there is no specific time for the purpose. As soon as the
proposal is accepted, risk will commence irrespective of the fact that no
policy was issued & no premium was paid. Where risks are unknown & tremendous,
the payment of premium will be the basis of the completion of the contract. The
risk will commence only when the premium has been paid & not before that;
when the policy has been issued, payment of premium will not be the basis of
commencement of risk.
(2). Insurable Interest.
(3). Principle of good faith.
(4). Doctrine of subrogation.
(5). Warranties.
(6). Proximate cause.
6 comments:
This is the perfect blog for anyone who wants to know about this topic. You know so much its almost hard to argue with you. Life insurance comparison quotes
Glad to be a part of your post! Thanks for sharing nice information.....This is really valuable....fire insurance...
Consequences of Indemnity in Fire Insurance
The consequences of the doctrine of indemnity are as below:
The insured may claim only the amount of the loss sustained.
In the case of partial damage, the insured may claim compensation only for the amount of damage done.
The insured must transfer to the insurer any rights which he may possess against a third party in respect of the loss.
If the insured have affected more than one policy, he is precluded from obtaining more than one complete indemnity.
Thanks for sharing the info, keep up the good work going.... I really enjoyed exploring your site. good resource... compare auto insurance quote now
Superbly written article, if only all bloggers offered the same content as you, the internet would be a far better place.. insurance
Thanks for sharing this article. it's very bountiful about best ="https://igiinsurance.com.pk/?page_id=620" title="fire insurance">Fire insurance.
Post a Comment