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प्रश्न
"Principle of contribution is a corollary to the principle of indemnity." Comment.
संक्षेप में उत्तर
उत्तर
- The principle of contribution is a corollary of the principle of indemnity. This applies to all indemnification arrangements where the insured has multiple policies covering the same subject matter. This principle states that an insured can only seek compensation for their actual loss from any or all insurers. If one insurer pays full compensation, they might seek proportionate payments from other insurers.
- For example, Mr. John insures his property worth Rs. 100,000 with two insurers, "AIG Ltd." for Rs. 90,000 and "MetLife Ltd." for Rs. 60,000. If John's destroyed property is worth Rs. 60,000, then Mr. John can seek full compensation for his loss of Rs. 60,000 from AIG Ltd. or MetLife Ltd., or he can claim Rs. 36,000 from AIG Ltd. and Rs. 24,000 from MetLife Ltd.
- If an insured receives full compensation from one insurer, they cannot profitably seek the same amount from another. If one insurance company pays the full compensation, they can reclaim the proportionate payment from the other insurance company.
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Principles of Insurance
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संबंधित प्रश्न
Explain the principles of insurance.
Identify the principle of insurance based on the given information.
- The insured must be benefitted by the existence of the insured object and must suffer a loss by its destruction.
- It is the financial interest of the insured in the subject matter of insurance.
Explain in brief the Principle of Subrogation.
Name the principle of insurance under which the insurer stands in place of the insured after settlement of claim in relation to the insured property.
Uberimmae fidae, the principle of insurance means ______.
What is insurable interest?
Explain 'contribution' as a principle of insurance.
Briefly explain the principle of Utmost good faith of insurance?
Distinguish between Principle of Indemnity and the Principle of Insurable Interest.
Is insurable interest necessary in all insurance contracts?
