Advertisements
Advertisements
प्रश्न
"Principle of contribution is a corollary to the principle of indemnity." Comment.
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.
APPEARS IN
संबंधित प्रश्न
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.
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?
Briefly explain the principle of Utmost good faith of insurance?
Distinguish between Principle of Indemnity and the Principle of Insurable Interest.
"Insurance is a contract of indemnity." Explain.
Is insurable interest necessary in all insurance contracts?
