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प्रश्न
Explain 'contribution' as a principle of insurance.
Write a short note on principle of contribution.
उत्तर
- Contribution means the right of an insurer who has paid a claim under an insurance policy to call upon other insurers to contribute to the payment.
- When an insured has taken more than one policy on the same property, he shall not be entitled to claim from each insurer more than the total loss from all insurers put together.
- The principle of contribution is applicable when the following conditions are satisfied:
- The insured must be the same person.
- All the policies must cover the same risk.
- All the policies must be in force at the time of the loss.
- The total amount of compensation under all policies must not exceed the amount of the loss.
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Choose the Correct Answer.
The basic principle of insurance is ________
Assertion: The concept of insurable interest is fundamental to all insurance contracts.
Reasoning: It ensures that the insured has a legitimate financial interest in the subject matter insured.
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.
"The insured must disclose all material facts and the insurer must make clear all the terms and condition in the insurance contract." Which principle of insurance is referred to in this statement?
Uberimmae fidae, the principle of insurance means ______.
What is insurable interest?
"Insurance is a contract of indemnity." Explain.
"Principle of contribution is a corollary to the principle of indemnity." Comment.
