What is the meaning of insurance?
What are the features of an insurance contract?
What are the types of insurance?
What is mean by double insurance?
What is mean by Re-insurance?
What are the advantages of insurance?
Risk and uncertainty are incidental to life and it is increasing day by day due to the increase in the fastness of life. People may suffer from accident, destruction of property from sea, fire, earthquakes and many other causes.
"Insurance is a social device providing financial compensation for the effects of misfortune, the payments being made from the accumulated contributions of all parties participating in the scheme."- D.S.HANSELL
INDIAN CONTRACT ACT (1872)
According to the above act the valid contract much posses
- offer and acceptance, capacity to contract, free consent of parties, lawful consideration and object, contracts not specifically declared void.
There are many types of insurance. Among them the important ones are
- Life insurance, Fire insurance and Marine insurance.
CONCEPT BEHIND DOUBLE INSURANCE
- If Mr.M insures his factory worth Rs. 3lakh with 5 insurers as- with A for Rs.70,000, with B for Rs.50,000, with C for Rs.80,000, with D for Rs.40,0000 and with E for Rs.1lakh, there occurs double insurance the aggregate of all these policies exceeds the total value of Mr.M's factory. If M insurers as- with A for Rs.50,000, with B for Rs.50,000, with C for Rs.50,000, with D for Rs.50,000 and with E for Rs.50,000 then there is no chance for double insurance.
For any reason if the original policy comes to an end, then the re-insurance policy also comes to an end. Thus the re-insurance policy is co-extensive with the original policy.
Insurance plays a main role on the large scale development of international trade. Protection against all types of sea-risks are covered by Marine insurance.
What are the features of an insurance contract?
What are the types of insurance?
What is mean by double insurance?
What is mean by Re-insurance?
What are the advantages of insurance?
Risk and uncertainty are incidental to life and it is increasing day by day due to the increase in the fastness of life. People may suffer from accident, destruction of property from sea, fire, earthquakes and many other causes.
"Insurance is a social device providing financial compensation for the effects of misfortune, the payments being made from the accumulated contributions of all parties participating in the scheme."- D.S.HANSELL
INDIAN CONTRACT ACT (1872)
According to the above act the valid contract much posses
- offer and acceptance, capacity to contract, free consent of parties, lawful consideration and object, contracts not specifically declared void.
There are many types of insurance. Among them the important ones are
- Life insurance, Fire insurance and Marine insurance.
CONCEPT BEHIND DOUBLE INSURANCE
- If Mr.M insures his factory worth Rs. 3lakh with 5 insurers as- with A for Rs.70,000, with B for Rs.50,000, with C for Rs.80,000, with D for Rs.40,0000 and with E for Rs.1lakh, there occurs double insurance the aggregate of all these policies exceeds the total value of Mr.M's factory. If M insurers as- with A for Rs.50,000, with B for Rs.50,000, with C for Rs.50,000, with D for Rs.50,000 and with E for Rs.50,000 then there is no chance for double insurance.
For any reason if the original policy comes to an end, then the re-insurance policy also comes to an end. Thus the re-insurance policy is co-extensive with the original policy.
Insurance plays a main role on the large scale development of international trade. Protection against all types of sea-risks are covered by Marine insurance.
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