In case of Life Insurance, at what time does the insurable interest needs to be present?
Insurable Interest refers to the potential needs the beneficiary will require from the financial loss of the insured person. Insurance interest is a basic requirement needed to make any life insurance contract valid. Therefore, it is required at the time of taking such insurance policy.
It is a type of saving bank account in which excess of a particular limit gets automatically transferred to fixed deposit account.
Multiple Option Deposit Account: A lot of banks have recently introduced this type of bank account. It is a type of Savings Account in which deposit in excess of a particular limit gets automatically transferred into Fixed Deposit.
The fee charged by the insurer on account of providing services is called
A person gets his house (worth RS. 12,00,000) insured from three insurance companies, i.e., A: Rs. 2,00,000, B: Rs. 4,00,000, C: Rs. 6,00,000. At the time of incurrence of loss, the compensation will be paid by insurance companies in the ratio of 1: 2: 3. Identify the principle being referred here.
A person gets his stock worth Rs. 50,000 insured for Rs. 70,000. A fire occurs and the whole stock gets damaged. The Insurance Company admits a claim of Rs. 50,000 only and not Rs. 70,000. Identify the principle of insurance being applied?
The principle of indemnity means that on the happening of a loss the person who faced the loss shall be put back into the same financial position as he used to occupy immediately before the loss.
In other words, the insured shall get neither more nor less than the actual amount of loss sustained.
Even if the sum insured is more than the actual value of the property or subject matter; this would not entitle the insured to get more than the actual loss.
Which of the following element is present in the case of Life Insurance?
It refers to the pecuniary interest in the subject matter of the contract of insurance. Identify the concept.
Which of the following is not covered under the principle of indemnity?
Which principle of insurance states that the insured must take reasonable steps to minimize the loss or damage to the insured property?
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