Roll No.

24

FUNDAMENTAL PRINCIPLES OF H.R.

COLLEGE OF
INSURANCE AND ITS APPLICATION COMMERCE
&
ECONOMICS

Bachelor of Commerce Vidyasagar,

Principal
Banking & Insurance K.M.
Kundnani
Semester VI Chowk, 123,
D.W. Road,
Church gate,
2016-17 Mumbai
400 020.

Submitted by

HIREN RAJESH KALINANI

 2
FUNDAMENTAL PRINCIPLES OF

Page
INSURANCE AND ITS APPLICATION

Bachelor of Commerce
Banking & Insurance
Semester VI

In Fulfillment of the requirements ROLL NO.24

Submitted
For the Award by
of Degree of Bachelor of
H.R. COLLEGE OF
HIRENCommerce
RAJESH KALINANI
Banking & Insurance
COMMERCE &
ECONOMICS
Vidyasagar, Principal K.M. Kundnani Chowk, 123, D.W. Road,
Church gate, Mumbai 400 020.
 3
H.R. COLLEGE OF COMMERCE & ECONOMICS

Page
Vidyasagar, Principal K.M. Kundnani Chowk, 123,D.W. Road, Church gate,
Mumbai 400 020.

Internal Examiner External

Examiner
CERTIFICATE

DECLARATION
This is to certify that Sheri / Miss HIREN RAJESH KALINANI of
B.Com.-Banking & Insurance Semester VI (2016-2017) has
successfully completed the project on FUNDAMENTAL
PRINCIPLES OF INSURANCE AND ITS APPLICATION under the
guidance of Poonam Jain.

Project Guide Principal

I HIREN RAJESH KALINANI the student of B.Com. - Banking &

Insurance Semester VI (2016 - 2017) hereby declare that I have
completed the Project FUNDAMENTAL PRINCIPLES OF

INSURANCE AND ITS APPLICATION

 4 Page
The information submitted is true and original to the best of my
knowledge.

Signature of the Student

HIREN
KALINANI
Roll No.24

ACKNOWLEDGEMENT
All praises and thanks to God, the Almighty, the Merciful and the
Omniscient whos Blessings enabled me to complete this work. With great
pleasure, I express my gratitude to all those personalities, who extended their
fullest co-operation for the successful completion of the present endeavor.
 5 Page
First of all, I would like to express my deep sense of gratitude and
indebtedness to the authorities of the Mumbai Uni0versity, Mumbai for providing
me an opportunity to undertake the present research work.

It is indeed my privilege and pleasure to express my profound sense of

gratitude to my research guide a versatile, intellectual and co-operative personality,
Ms. Poonam Jain, Mumbai University, Mumbai, her guidance could bring this
research work in the present shape. She is not only dedicated and perseverant but
also provides her valuable guidance, which always does justice to the visible
qualities inherent in her. I must appreciate her for her patience, great involvement
and sympathetic behavior, which enabled me to complete this work. The feedback
I got from her, enable me to know very good things for doing excellent work.

I express my deep appreciation and sincere gratitude to all my loving friends

and relatives for providing me moral support; due to their co-operation & active
assistance the present research work could be done.

At the end, I would like to thank all those who provided information for this, and
who generously shared details of their experiences and technical aspects about this
research.
 CONTENTS

6 Page
Chapter No. Chapter Title Page No.
Acknowledgement 5
Chapter 1 Introduction pf risk and insurance 8-11
Chapter 2 History of insurance 12-18
Chapter 3 Fundamental principle of insurance 19-39
Implication of insurance in different types of
Chapter 4 insurance 40-44
Chapter 5 Conclusion 45-59
Bibliography 60
 7 Page
CHAPTER 01

INTRODUCTION OF RISK AND INSURANCE

RISK AND INSURANCE

1.1.1 Meaning of Risk

There have been many attempts to define risk.

Probably, to most of us ,risk contains a suggestion of loss or danger . We
may therefore define it as uncertainty concerning a potential loss, a

8 Page
situation in which we are not sure whether there will be loss of a certain kind,
or how much will be lost. It is this uncertainty and the undesirable element
found with risk that underlie the wish and need for insurance.

The potential loss that risk presents may be:

(A) Financial: i.e. measurable in monetary terms (e.g. loss of a camera by

theft);

(b) Physical: death or personal injury (often having financial consequences

for the individual or his family)

Everyone is exposed to various risks. Future is very uncertain, but there

is way to protect ones family and make ones childrens future safe and that
magical way is Insurance.

Insurance is a tool by which fatalities of a small number are compensated out

of funds (premium payment) collected from plenteous. Insurance companies
pay back for financial losses arising out of occurrence of insured events.

Example:-If in personal accident policy death due to accident, in fire

policy the insured events are fire and other allied perils like riot and strike,
explosion etc. hence insurance safeguard against uncertainties. It provides
financial recompense for losses suffered due to incident of unanticipated
events, insured with in policy of insurance.
What is INSURANCE

It is a commonly acknowledged phenomenon that there are countless

risks in every sphere of life .for property, there are fire risk; for shipment of
goods. There are perils of sea; for human life there are risk of death or
disability; and so on .the chances of occurrences of the events causing losses
are quite uncertain because these may or may not take place. Therefore, with
this view in mind, people facing common risks come together and make their
small contribution to the common fund. While it may not be possible to tell in

9 Page
advance, which person will suffer the losses,
It is possible to work out how many persons on an average out of the
group, may suffer losses. When risk occurs, the loss is made good out of the
common fund .in this way each and every one shares the risk in fact they
share the loss by payment of premium, which is calculated on the likelihood
of loss .in olden time, the contribution make the above-stated notion of
Insurance.

Insurance is a means of protection from financial loss. It is a form of risk

management primarily used to hedge against the risk of a contingent,
uncertain loss.
Definition of insurance

Insurance has been defined to be that in, which a sum of money as a

premium is paid by the insured in consideration of the insurers bearings the
risk of paying a large sum upon a given contingency. The insurance thus is a
contract whereby:

A. Certain sum, termed as premium, is charged in consideration,

B. Against the said consideration, a large amount is guaranteed to be paid by

10
The insurer who received the premium,

Page
C. The compensation will be made in certain definite sum, i.e., the loss or the
policy amount which ever may be, and
D. The payment is made only upon a contingency
More specifically, insurance may be defined as a contact between two
parties, wherein One party (the insurer) agrees to pay to the other party (the
insured) or the beneficiary, a certain sum upon a given contingency (the risk)
against which insurance is required
Oxford definition of Insurance
"An arrangement by which a company or the state undertakes to provide a
guarantee of compensation for specified loss, damage, illness, or death in
return for payment of a specified premium."

Definition by Insurance Regulatory & Development Authority Act (IRDA)

"Insurance is defined as is a form of risk management primarily used to
hedge against unforeseen risks of contingent losses."

MAJOR INSURANCE COMPANIES IN INDIA:-

Page 11
 12
Page

CHAPTER 02

HISTROY OF INSURANCE
History of insurance

13
History of insurance is divided on two parts

Page
EARLY METHOD
MODERN METHOD

Early methods:
Methods for transferring or distributing risk were practiced
by Chinese and Babylonian traders as long ago as 3rd and 2nd millennia BC,
respectively. Chinese merchants travelling treacherous river rapids would
redistribute their wares across many vessels to limit the loss due to any single
vessel's capsizing and much more

Merchants have sought

methods to minimize
risks since early times.
Pictured, Governors of
the Wine Merchant's
Guild. 1680

Separate insurance contracts (i.e., insurance policies not bundled with

loans or other kinds of contracts) were invented in Genoa in the 14th century,
as were insurance pools backed by pledges of landed estates. The first known
insurance contract dates from Genoa in 1347, and in the next century
maritime insurance developed widely and premiums were intuitively varied
with risks.
MODERN METHOD

14Page
Insurance became more sophisticated in Enlightenment era Europe, and
specialized varieties developed. Some forms of insurance developed
in London in the early decades of the 17th century. For example, the will of
the English colonist Robert Hayman mentioned two "policies of insurance"
taken out with the diocesan Chancellor of London, Arthur Duck. Of the value
of 100 each, one related to the safe arrival of Hayman's ship in Guyana and
the other was in regard to "one hundred pounds assured by the said Doctor
Arthur Ducked on my life"

Insurance became far more sophisticated in Enlightenment era Europe,

and specialized varieties developed.
 Property insurance as we know it today can be traced to the Great Fire

15
of London, which in 1666 devoured more than 13,000 houses. The

Page
devastating effects of the fire converted the development of insurance "from a
matter of convenience into one of urgency, a change of opinion reflected in
Sir Christopher Wren's inclusion of a site for 'the Insurance Office' in his new
plan for London in 1667".[4] A number of attempted fire insurance schemes
came to nothing, but in 1681, economist Nicholas Baron and eleven
associates established the first fire insurance company, the "Insurance Office
for Houses", at the back of the Royal Exchange to insure brick and frame
homes. Initially, 5,000 homes were insured by his Insurance Office

Functions and Benefits of Insurance

 16
Insurance Has Many Functions and Benefits, Some Of Which We May

Page
Describe As Primary and Others as Ancillary or Secondary, As Follows:

(A) Primary Functions/Benefits: Insurance Is Essentially A Risk Transfer

Mechanism, Removing, For A Premium, The Potential Financial Loss From
The Individual And Placing It Upon The Insurer.
The Primary Benefit Is Seen In the Financial Compensation Made Available
To Insured Victims Of The Various Insured Events. On The Commercial
Side, This Enables Businesses To Survive Major Fires, Liabilities, Etc. From
A Personal Point Of View, The Money Is Of Great Help In Times Of
Tragedy (Life Insurance) Or Other Times Of Need.
(B) Ancillary Functions/Benefits: Insurance Contributes To Society
Directly Or
Indirectly In Many Different Ways. These Will Include:
(I) Employment: The Insurance Industry Is A Significant Factor In The
Local Workforce;
(II) Financial Services: Since The Relative Decline In Manufacturing In
Hong Kong, Financial Services Have Assumed A Much Greater Role In
The Local Economy, Insurance Being A Major Element In The
Financial Services Sector;
(III) Loss Prevention And Loss Reduction (Collectively Referred To As
Loss Control): The Practice Of Insurance Includes Various Surveys
And Inspections Related To Risk Management (See 1.1.3(B) Above).
These Are Followed By Requirements (Conditions For Acceptance Of
Risk) And Or Recommendations To Improve The Risk. As A
Consequence, We May Say That There Are Fewer Fires, Accidents And
Other Unwanted Happenings;
(IV) Economic Growth/Development: It Will Be Obvious That Few
People Would Venture Their Capital On Costly Projects Without The
Protection Of Insurance
FUNDAMENTAL PRINCIPLES OF INSURANCE

17Page
Insurance involves pooling funds
from many insured, entities (known
as exposures) to pay for the losses
that some may incur. The insured
entities are therefore protected from
risk for a fee, with the fee being
dependent upon the frequency and
severity of the event occurring. In
order to be an insurable risk, the risk
insured against must meet certain
characteristics. Insurance as
a financial intermediary is a
commercial enterprise and a major
part of the financial services
industry, but individual entities can
also self-insure through saving
money for possible future losses.

In civil law countries insurance has typically been more closely

linked to the protection of the vulnerable, rather than as a
device to encourage entrepreneurialism by the spreading of risk.
Civil law jurisdictions - in very general terms - tend to regulate
the content of the insurance agreement more closely, and more
in the favour of the insured, than in common law jurisdictions,
where the insurer is rather better protected from the possibility
that the risk for which it has accepted a premium may be greater
than that for which it had bargained. As a result, most legal
systems worldwide apply common-law principles to the
adjudication of commercial insurance disputes, whereby it is
accepted that the insurer and the insured are more-or-less equal
partners in the division of the economic burden of risk.
 18
SEVEN PRICIPLES OF INSURANCE ARE :-

Page
 19
Page

CHAPTER 3

FUNDAMENTAL PRINCIPLES OF
INSURANCE
PRINCIPLE OF INSURABLE INTEREST

20Page
The word interest can have a number of meanings. In the present
context, it means a financial relationship to something or someone. There
are a number of features to be considered with insurable interest, as below.

1 Definition
Insurable interest is a persons legally recognized relationship
to the subject matter of insurance that gives them the right to effect insurance
on it. Since the relationship must be a legal one, a thief in possession of
stolen goods does not have the right to insure them.

3.1.2 Importance of Insurable Interest

An insurance agreement is void without insurable interest. The rules

relating to return of premiums under such an agreement vary as between the
different classes of insurance. These rules are the general rules on illegality of
contract and the relevant provisions of the Insurance Companies Ordinance
(ICO) and of the Marine Insurance Ordinance.

Its Essential Criteria

For insurable interest to exist, the following criteria must be satisfied:

(a) there must be some person (i.e. life, limbs, etc.), property, liability or legal
right (e.g. the right to repayment by a debtor) capable of being insured;

(b) that person, etc. must be the subject matter of the insurance (that is to say,
claim payment is made contingent on a mishap to such person, etc.);

(c) the proposer must have the legally recognised relationship to the subject
matter of insurance, mentioned in above, so that financial loss may
result to him if the insured event happens. (However, insurable interest is
sometimes legally presumed without the need to show financial
relationship. For example, any person is regarded as having an insurable
interest in the life of their spouse.
How It Arises

21
Page
Insurable interest arises in a variety of circumstances, which may be
Considered under the following headings:

(A) Insurance Of The Person: everyone has an insurable interest in his

own life,
Limbs, etc. One also has an insurable interest in the life of one's spouse.
Further, one may insure the life of one's child or ward (in guardianship)
Who is under 18 years of age, and a policy so effected will not become
Invalid upon the life insured turning 18.

(B) Insurance Of Property (Physical Things): the most obvious

example arises. In absolute ownership. Executors, administrators,
trustees and mortgagees ,Who have less than absolute ownership, may
respectively insure the estate, The trust property and the mortgaged
property. Bailees (i.e. Persons taking Possession of goods with the
consent of the owners or their agents, but Without their intention to
transfer ownership) may insure the goods bailed.

(C) Insurance Of Liability: everyone facing potential legal liability for

their Own acts or omissions may effect insurance to cover this risk
(sometimes Insurance is compulsory), such liability being termed direct
liability or primary liability. Insurance against vicarious liability Is
also possible, where, for example, employers insure against their
liability To members of the public arising from negligence, etc. Of their
employees.

(D) Insurance Of Legal Rights: anyone legally in a position of

potential loss due To infringement of rights or loss of future income has
the right to insure Against such a risk. Examples include landlords
insuring against loss of Rent following a fire.
 22
Page
EXAMPLES OF INSURABLE INTEREST

I N PROPERTY AND LIABILITY INSURANCE:

Ownership of property
Potential legal liability
Secured creditor
A contractual right

IN LIFE INSURANCE :

Own life
Life of close family lies
Pecuniary interest in life of third party
 23
Page

PRINCIPLE OF UTMOST GOOD FAITH

Ordinary Good Faith

At common law, most types of contracts are subject to the principle of

good faith, meaning that the parties have to behave with honesty and such
information as they supply must be substantially true. However, it is not their
responsibility to ensure that the other party obtains all vital information
which may affect his decision to enter into the contract, or may affect the
terms on which he would enter into the contract. For example, if only after
you have boarded a double-decker and paid the fare do you find that no seats
on it are vacant, you will have no grounds for complaint. In technical terms,
you are not entitled, in such circumstances, to avoid your contract with the
bus company for its failure to voluntarily disclose to you the fact that all the
seats have been taken on the bus
.
Utmost Good Faith
 24Page
Insurance is subject to a more stringent common law principle of good faith,
often called the principle of utmost good faith. It means that each party is
under a duty to reveal all vital information (called material facts) to the
other party, whether or not that other party asks for it. For example, a
proposer of fire insurance is obliged to reveal the relevant loss record to the
insurer, even where there is not a question on this on the application form.
When to Disclose Material Facts

25Page
It may be said that utmost good faith involves a duty of disclosure by the
proposer/insured. Technically, the insurer is under the same duty, but here we will
concentrate on the proposer's duty. This duty has some features that we should
note:4
(a) Duration (at common law): Those material facts which do not come to
the proposers (or his agents) knowledge until the insurance contract has been
concluded do not have to be disclosed. Suppose a proposal for a one-year medical
insurance commencing on 15 January 2011 was accepted on 2 January, and the
insured had a routine medical examination on 10 January which revealed to him on
16 January the contraction of malaria. important question to ask is: Is the insured
legally obliged to disclose such finding to his insurer? Applying the legal rule just
said, the insured is not obliged to do so, assuming that the terms of insurance are
silent on this point. Of course, the policy will normally contain an exclusion for
preexisting diseases, in which case the insurer may rely on this exclusion rather
than a breach of utmost good faith in trying to deny a claim in respect of malaria.

(b) Duration (under policy terms): Some non-life policies require

theisclosure of material changes in risk happening during the currency of the
contract, such as a change in occupation in the case of a personal accident
insurance. At common law, such a change, which could at most represent
an increase in risk, need not be notified until renewal.

(c) Renewal: when the policy is being renewed, the duty of utmost good
faith revives.
(Note: the duty of utmost good faith does not revive when a life policy is
approaching its anniversary date.)

(d) Contract alterations: If these are requested during the currency of the
policy, the duty of utmost good faith applies in respect of these changes. Where,
for example, the insured of a fire policy is requesting an extension to cover theft,
he is immediately obliged to disclose all material facts relating to the theft risk, e.g.
the physical protections of the insured premises and his record of theft losses, if
any.
Types of Breach of Utmost Good Faith

26Page
A breach of utmost good faith can be in the form of either a
misrepresentation (i.e. the giving of false information) or a non-d
isclosure (i.e. failure to give material information). Alternatively, it can be
classified into fraudulent breach and a non-fraudulent breach (i.e. a breach
committed either innocently or negligently, rather than fraudulently). Both
classifications combine produce a four-fold categorisation as follows:

(a) Fraudulent Misrepresentation: an act of fraudulently giving false

material acts to the other party;

(b) Non-fraudulent Misrepresentation: an act of giving false material

facts to the other party done either innocently or negligently;

(c) Fraudulent Non-disclosure: a fraudulent omission to give material

facts to the other party; or

(d) Non-fraudulent Non-disclosure: an omission to give material facts

to the other party done either innocently or negligently.
 27
PRINCIPLE OF INDEMNITY

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Definition

"Indemnity means an exact financial compensation for an

insured loss, no more no less."
Implications

Indemnity cannot apply to all types of insurance. Some types

of insurance deal with losses that cannot be measured precisely in
financial terms. Specifically, we refer to Life Insurance and Personal
Accident Insurance. Both are dealing with death of or injury to human
beings, and there is no way that the loss of a finger, say for instance, can
be measured precisely in money terms
.
Thus, indemnity cannot normally apply to these classes of business.

(Note: medical expenses insurance, which is often included in personal

accident and travel insurance policies, is indemnity insurance unless
otherwise specified in the policies.)

Other insurances are subject to the principle of indemnity.

(Note: It is sometimes said that life and personal accident insurances

involve benefit policies rather than policies of indemnity. Since
indemnity cannot normally apply, the policy can only provide a benefit
in the amount specified in the policy for death or for the type of injury
concerned.)
 28
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How Indemnity is Provided

It is common for property insurance policies to specify that the insurer
may settle a loss by any one of four methods named and described below.
However, both marine and non-property policies are silent on this issue so
that the insurer is obliged to settle a valid claim by payment of cash.

A. Cash payment (to the insured): This is the most convenient method, at
least to the insurer.

B. Repair: Payment to a repairer is the norm, for example, with motor

partial loss claims.

C. Replacement: With new items, or articles that suffer little or no

depreciation, giving the insured a replacement item may be a very
suitable method, especially if the insurer can obtain a discount from a
supplier.

D. Reinstatement: This is a word that has a number of meanings in

insurance. As a method of providing an indemnity, it means the
restoration of the insured property to the condition it was in
immediately before its destruction or damage.
 29Page
PRINCIPLE OF CONTRIBUTION
Equitable Doctrine of Contribution

This is a claims-related doctrine of equity which applies as between

insurers in the event of a double insurance, a situation where two or more
policies have been effected by or on behalf of the insured on the same interest
or any part thereof, and the aggregate of the sums insured exceeds the
indemnity legally allowed.

[Example: Suppose a husband and wife each insure their home and
contents, each thinking that the other will forget to do it. If a fire occurs
and $200,000 damage is sustained, they will not receive $400,000
compensation. The respective insurers will share the $200,000 loss.]
Apart from any policy provisions, any one insurer is bound to pay to the
insured the full amount for which he would be liable had other policies not
existed. After making an indemnity in this manner, the insurer is entitled to
call upon other insurers similarly (but not necessarily equally) liable to the
same insured to share (or to contribute to) the cost of the payment.

Where contribution applies, the ultimate proportion of the insureds

loss that any one particular insurer is responsible for is called the rateable
proportion of that insurer. It is not difficult to understand that the sum of all
the insurers rateable proportions equals one, that is to say, 100% of the
insureds loss. A few methods are available for calculating rateable
proportions. But as an insurance intermediary, it is not essential that you
should know them well, bearing in mind that how much your clients will
ultimately get paid for a loss will not depend on the basis of contribution to
be employed.
 30
The criteria (or essentials) that need to be satisfied before

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contribution applies are:

(a) the respective policies must each be providing an indemnity (rather

than benefit) to the loss in question (this is the reason why it is said that
contribution is a corollary (i.e. a natural consequence of an established
principle) of indemnity);
(b) they must each cover the interest (which term does not mean
property, liability, etc.) affected (see counter-example below);
(c) they must each cover the peril (cause of loss) that has given rise to
the loss;
(d) they must each cover the subject matter of insurance (property,
liability, etc.) that has been affected; and
(e) each policy must be liable to the loss (i.e. not be subject to a policy
exclusion or limitation preventing contribution).

Example of criterion (b): A merchant has some stock-in-trade

kept in a public warehouse, and insured under a fire policy. Separately and at
the same time, the warehouse operator buys fire insurance on the same
property.

When a fire occurs damaging the stock-in-trade, both the merchant and the
warehouse operator claim under their own policies for the same damage.
Immediately two basic questions come to mind. First, is the warehouse
operator, not being an owner of the damaged property, entitled to claim under
his own fire policy? Second, if both policyholders are entitled to claim, will
there be contribution between the insurers? The answer to the first question
is: the warehouse operator, being a bailed of the stock-in-trade, has insurable
interest in it at the time of loss, and is thus entitled to claim under his own
policy. Turning to the merchant, you probably will not conclude or argue that
he cannot expect to be indemnified. Now we have to wrestle with the second
question. The answer to this question hinges on that to the question of
whether the two policies cover the same interest (criterion (b)). For whose
benefit has the merchant bought his fire insurance? And what about the
warehouse operator? In fact, each of them has bought insurance for their own
benefit. In other words, the first mentioned policy covers the merchants
interest as owner, and the second one covers the warehouse operators

31
interest as bailee. Is it apparent to you now that the two policies cover

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different interests, so that contribution will not apply as between them?

At this point, we have completely resolved the issue of contribution

arising in the case. But there remains an issue of the cogency of indemnifying
for the same loss with twice its amount. Now it is time for another principle
of insurance subrogation to play its part. The insurer of the merchant,
upon indemnification, is entitled to claim, for his own benefit albeit in the
name of the merchant, against the warehouse operator (bailee) for the
indemnity provided by the other insurer.]

How Applicable
Contribution will only apply if indemnity applies. Thus, if a person
dies whilst insured by two or more separate life insurance policies, each has
to pay in full, because the insurances are not subject to indemnity.

How Amended by Policy Conditions

The position between insurers as governed by the equitable doctrine of
contribution is of little or no concern to the insured, unless that has been
modified by one of the following policy provisions:

i. Rateable Proportion Clause (or Contribution Condition), restricting the

insurers liability to its rateable share of the loss. The effect is that, where
there is double insurance and each of the relevant policies contains such a
clause, the insured could no longer claim all of his loss from one insurer
alone.
[Example: Using the example in above again, the standard fire policy
contains a clause restricting its contribution to its rateable share in the
event of double insurance. In the given circumstances, if Insurer A is
approached first and his rateable share is, say, $50,000 (25%), he cannot be
made to pay the full loss. He is liable only for $50,000 and the insured
must himself go to Insurer B for Bs rateable share ($150,000 or 75%).]

ii Non-contribution Clause
To the effect that it is the other policies that will have to pay the loss.
 32
Page
[Example: Household policies on contents may exclude items more
specifically insured. If a camera is separately insured under an All Risks
policy, that policy may be regarded as more specific than the household
policy, so that the latter policy, if it contains such a clause, will not be
liable for a, say, theft loss of the camera from the insured premises.]

iii Partial Contribution Condition:

[Example: The so-called Marine Clause in the standard fire policy

provides that in the event of potential contribution between a marine policy
and the fire policy, the fire policy will not share the loss, except for that
part of the loss which is above the marine compensation. (This may
happen where, for example, some cargo, while being left in a container
depot awaiting the carrying vessel, catches fire. The usual marine policy
will cover the damage so caused. It is also possible that there is in place a
fire policy whose cover has been extended to cover a fire occurring in such
circumstances.
PRINCIPLE OF SUBROGATION

33
Page
Definition

Subrogation is the exercise, for ones own benefit, of rights or remedies

possessed by another against third parties. As a corollary (i.e. a natural
consequence of an established principle) of indemnity, subrogation allows
proceeds of claim against third party be passed to insurers, to the extent of
their insurance payments. At common law, an insurers subrogation action
must be conducted in the name of the insured.

Suppose, for example, that a car, covered by a comprehensive motor

policy, is damaged by the negligence of a building contractor. The motor
insurer has to pay for the insured damage to the car. As against the negligent
contractor, the insureds right of recovery will not be affected by the
insurance claim payment. However, the motor insurer may, after
indemnifying the insured, take over such right from the insured and sue the
contractor for the damage in the name of the insured
.
From this, it will easily be seen how subrogation seeks to protect the
parent principle of indemnity, by ensuring that the insured does not get paid
twice for the same loss.

How Arising

Subrogation rights arise in several manners as follows:

(a) In tort: This usually arises where a third party negligently causes a
loss indemnifiable by a policy. For example, a fire insurer, after paying a fire
loss, discovers that the fire was caused by a negligent act of a neighbour of
the insured. It sues the neighbour in the name of the insured for damages
recognised by the law of tort.
(b) In contract: This arises where the insured (perhaps a landlord) has a
contractual right (perhaps under a tenancy agreement) against another
person (perhaps a tenant) for an insured loss. After indemnifying the
insured for the loss, the insurer may exercise such right against that other
person in the name of the insured.
 (c) Under statute: If a person is injured at work, his employer, if any,

34
will have to pay an employee compensation benefit to him in accordance

Page
with the provisions of the Employees' Compensation (EC) Ordinance. The
Ordinance will then grant subrogation rights to the indemnifying employer
against another person who is liable to the employee for the injury. In turn,
the employer has to pass these rights to the EC insurer who has paid the
employee compensation benefit for or on behalf of the employer.

(d) In salvage: This we have already considered (see 3.4.5 above). The
insurer may be said to have subrogation rights in what is left of the subject
matter of insurance (salvage), arising under the circumstances already
discussed.

How Applicable :

As with contribution, subrogation can only apply if indemnity applies.

Thus, if the life insured of a life policy is killed by the negligence of a
motorist, the paying life insurer will not acquire subrogation rights, as this
payment is not an indemnity.

Other Considerations :

There are other features to note:

(a) In the common law, subrogation rights are only acquired after an
indemnity has been provided. Non-marine policies usually remove such
restriction by stipulating that the insurer is entitled to such rights even before
indemnification.
(b) Some considerations arise in respect of proceeds of subrogation:
(i) The insurer cannot recover more under subrogation than he has
paid as an indemnity. By way of example, suppose there is an insured
loss of an antique. The insurer pays, and sometime later when the antique is
found, its value is much higher. The insurer can only keep an amount equal to
what he has paid and any balance belongs to the insured.
(ii) The above saying is not true in the event of subrogation arising
after abandonment of the property to the insurer There, all rights in the
property belong to the insurer,
 (iii) Sharing of Subrogation Proceeds Where the insurer has only

35
provided a less-than indemnity on the basis of certain policy limitations, the

Page
insured may possibly be entitled to part of sometimes even the whole of -
the subrogation proceeds, depending on what limitations have been applied in
the process of claims adjustments. The following are illustrations of
several manners in which the sharing of subrogation proceeds between the
insured and the insurer can be done:

(1) Excess: Suppose the insured is responsible for a loss (excess) of

$10,000 before his liability insurer pays $40,000, and $20,000 is
subsequently recovered from a negligent third party. The whole of $20,000
will belong to the insurer. However, if the subrogation recovery is $45,000
instead, the insured will be entitled to $5,000 and the insurer $40,000.

(2) Limit of Liability: Suppose an insured contractor has incurred

liability to a road user in the amount of $1.5 million, of which the insured has
to pay $0.5 million out of his own pocket because his policy is subject to a
limit of liability of $1 million. Any recovery from a joint tortfeasor will
belong to the insured, except where it amounts to more than $0.5 million in
which case that part over and above the $0.5 million threshold will belong to
the insurer up to the amount of insurance payment.

(3) Average: Suppose a fire insurer has paid 80% of a loss where
there is a 20% underinsurance. The insured is entitled to 20% of
subrogation proceeds as if he was a co-insurer for 20% of the risk.
PRINCIPLE OF CAUSA PROXIMA :-

36Page
In the law, a proximate cause is an event sufficiently related to a legally
recognizable injury to be held to be the cause of that injury. There are two
types of causation in the law: cause-in-fact, and proximate (or legal) cause.
Cause-in-fact is determined by the "but for" test: But for the action, the result
would not have happened. For example, but for running the red light,
the collision would not have occurred. For an act to cause a harm, both tests
must be met; proximate cause is a legal limitation on cause-in-fact.

The formal Latin term for "but for" (cause-in-fact) causation, is sine
qua non causation.

Pursuant to this principle, the cause nearest in the order of causation,

without any efficient concurring cause to produce the result, must be
considered as the direct cause. For example, if a ship foundered during a
storm, the cause of her loss was considered bad weather conditions,
regardless of any other factors that might have contributed to her foundering

The principle of proximate cause virtually revolves around the claims

administration and, more precisely, diagnosing the playability or otherwise of
a claim on the question of perils covered by a policy.A policy may cover
certain perils mentioned specifically therein (known as insured perils), whilst
some perils may be specifically excluded (known as excepted perils) and
some may still be neither included nor excluded (known as uninsured perils).

It is not always that much straight forward that a loss would be caused by a
singular insured or uninsured or an excepted peril so that a claim would
clearly be either payable or not payable.
 Difficult situations do occur where numbers of perils get involved

37
simultaneously, some insured, some uninsured and some still accepted.

Page
More so, the position gets further complicated when an insured peril is
followed up by an excepted peril or an excepted peril is followed up by an
insured peril, simultaneously getting mixed up by uninsured perils.

The principle of proximate cause has been established to solve such a

cumbersome situation and to enable a claims manager to decide whether a
claim is at all payable or not, and if payable, then to what extent.

What is this proximate cause then? It has been well defined in the leading
case of Pawsey V. Scottish Union and National (1907) as follows;

Proximate cause means the active, efficient cause that sets in motion a train
of events which brings about a result, without the intervention of any force
started and working actively from a new and independent source. It is the
immediate cause and not the remote cause. The maxim is, Causa Proxima
non remota spectatur. Immediate or proximate means Proximate in
efficiency and not necessarily in time. The consideration is what has actually
brought about the result?

A ship was severely torpedoed and was in the process of sinking.

Almost immediately there was a cyclonic storm and the ship sank. It was held
that the proximate cause of the sinking of the ship was torpedo (Leyland
Shipping Co. V. Norwich Union Fire Insurance Society, 1918). Although, the
cyclone was nearer to sinking in time, nevertheless, a torpedo was the active
efficient cause, because the ship was so hard hit by a torpedo that it would
have definitely sunk. Maybe the cyclone has accelerated the speed of sinking
and it can simply be regarded as a remote cause. To take another example, a
man falls from a ladder at a low height and scratches his leg a little. He is
taken to a hospital and in the hospital he contacts cholera from the next bed
patient and dies. The proximate cause of his death is cholera and not falling
from the ladder, or for that matter scratches on his leg, even though it can be

38
wrongly argued that has he not had scratches on his leg he would not have

Page
gone to the hospital and contacted cholera as such.

In this case, scratches may be a remote cause. Let us take another

example. A man scratches his leg falling from a ladder. He is being taken to
hospital by an ambulance.On way to hospital, the ambulance meets a head-on
collision with a lorry and all persons on board the ambulance die including
our man. The proximate cause of our mans death is the collision and
certainly not scratches. Collision being the cause of death is very efficient
here whilst scratch is inefficient and remote.

Certain quotations may be very helpful to the students at this stage and
they should try to realize the implications of such quotations, which would
help them in removing a number of confusions that might occur in their mind
about proximate cause.
 39Page

Once it is clear that the causa proxima is covered by the policy, it will
then be essential to calculate the loss and decide how much the Company is
liable to pay. At this point the principle of indemnity will take control.

PRINCIPLE OF LOSS MINIMIZATION

Definition:
A rule stating that firm minimizes economic loss by producing
output in the short run that equates marginal revenue and marginal cost
if price is less than average total cost but greater than average variable
cost. In the short run, a firm incurs total fixed cost whether or not it
produces any output. As such, if the market price is falls below average
 total cost, it must decide if the economic loss from producing the

40
quantity of output that equates marginal revenue and marginal cost is

Page
more or less than the economic loss incurred with shutting down
production in the short run (which is equal to total fixed cost).

The principle of loss minimization: The Insured person should

make all possible effort to minimize the damage to her property in event
of a disaster. For example, if she notices robbers breaking into her house
and steal her possessions, she cannot simply stand by in the hope that the
insurance company will replace them with shiny new models. She has a
responsibility to call the police.
Page 41
 42
Page
CHAPTER 4

Case study
 43Page
SHORT CASE STUDIES :-

Case A
The case of Joseph Muscat v. Joseph Gas an et noe (1998) concerned a
claim for the amount of Lm3000 due to a loss of a diamond ring insured
under an Accidental Damage Insurance Policy. The defendants refused to
meet the claim on the basis of misrepresentation and non-disclosure of
material facts by the insured, which made the policy voidable. The insurers
(Gasan Insurance Agency Limited) stated that the insured (Joseph Muscat)
had answered incorrectly a question in the proposal form as regards to
previous convictions involving dishonesty. The insurers also claimed that the
insured had failed to declare that he was previously convicted of the offence
of gaming and betting and had also been imprisoned for a term of eight days.
The Court rejected the claim for the insured since the latter facts were
considered to be significant. Yet, this judgment was reversed and the Court
concluded that the offences of which the applicant was convicted did not hold
an offence concerning dishonesty and thus he was not requested to disclose
such facts. Furthermore, the Court stated that the principle of Uberrima
Fides lies also in the hands of the insurer

Case B
In Kettlewell v. Refuge Assurance (1908), the defendants fraudulent
misrepresentation persuaded the claimant to pay the premiums for four years,
after which she was untruthfully told that she would receive a free policy.
The Court concluded that the policyholder had the right to avoid the policy
and to recoup the premiums paid since the date of misrepresentation.
 44
Case C

Page
In Carter v. Boehm (1766), Mr Carter, the Governor of Fort
Marlborough, acquired an insurance policy against the fort being taken by a
foreign enemy together with Mr Boehm. A witness gave evidence that Mr
Carter knew about the fact that the fort was build to resist attacks from
citizens, not European from enemies, which at that time the French were
likely to attack. The French did attack and Mr Boehm declined to complete
the claim. Mr Carter was sued on the basis of non-disclosure of material
facts.

Case D
In the following case, Macaura v. Northern Assurance Co. Ltd (1925),
Macaura had insured an amount of timber on his land under a fire policy. He
had already sold the timber to a company of which he was the only
shareholder. When the timber was damaged by fire the insurers refused to
meet the claim on the basis that Macaura had no insurable interest in the
assets of the company but only in his shares

Case E
In England, in Lucena v. Craufurd (1806); here the Crown Commissioners
insured a number of rival ships which had been captured when they were
still on the high seas . The authority of the Commissioners took control of the
ships only when the vessels arrived at the port, subsequently the court
believed that the Commissioners had no interest in the ships. Up until that
point, they had only an expectancy of taking in charge of the vessels.
 45
Case F

Page
The following case, Leyland Shipping v. Norwich Union Fire Insurance
Society Ltd (1918) illustrates that the causa proxima may not necessarily be
the last event to occur. The ship was insured under a policy that covered
perils of the seas, however excluded war risks. The ship was hit by a torpedo
and despite the severe damage it still reached the port, where repair work was
started. When a storm blew up, the ship sank. The Court stated that the
torpedo was the proximate cause of the loss since the damage it caused had
been effective throughout.

Case G
In Richard Aubrey Film Productions Ltd v. Graham (1960), a film producer
insured against the loss of negatives and films . When a film that was soon
completed was stolen, the policyholder was entitled to recover only the
market value of the film, less the cost of competing it. Though the film was
described as the child of his artistic creation and thus the policyholder was
not permitted to recover anything on the grounds that his work reflects his
personal value and feelings.
 46
Page

CHAPTER 5

TYPES OF INSURANCE
 47
Page
TYPES OF INSURANCE
There are mainly four basic types of insurance i.e. Life insurance, Fire
insurance, Marine insurance, Miscellaneous insurance.

Life Insurance:
Life insurance (or life assurance, especially in the Commonwealth), is a
contract between an insurance policy holder and an insurer or assurer, where
the insurer promises to pay a designated beneficiary a sum of money (the
benefit) in exchange for a premium, upon the death of an insured person
(often the policy holder). Depending on the contract, other events such as
terminal illness or critical illness can also trigger payment. The policy holder
typically pays a premium, either regularly or as one lump sum. Other
expenses (such as funeral expenses) can also be included in the benefits.
 48Page
Life policies are legal contracts and the terms of the contract describe
the limitations of the insured events. Specific exclusions are often written
into the contract to limit the liability of the insurer; common examples are
claims relating to suicide, fraud, war, riot, and civil commotion.
Life-based contracts tend to fall into two major categories:
Protection policies designed to provide a benefit, typically a lump sum
payment, in the event of specified event. A common form of a protection
policy design is term insurance.
Investment policies where the main objective is to facilitate the
growth of capital by regular or single premiums. Common forms (in the U.S.)
are whole life, universal life, and variable life policies.
 The Life Insurance Corporation of India popularly known as LIC of

49
India was incorporated on September 1, 1956 by nationalizing 245 Indian

Page
as well as foreign companies. It was established 52 years ago with a view to
provide an insurance cover against various risk in life. The luminaries who
spearheaded this move at that time visualized an entity that will provide life
insurance to Indians, especially the vast rural people, at an economical cost
and channel the savings for the betterment of the nation. It is the largest life
insurance company in India and also the countrys largest investor. It is fully
owned by the Government of India and headquarter is Mumbai.

Today LIC function with 2048 fully computerized branch offices, 100
divisional offices, 7 Zonal offices and the corporate office. LICs wide area
Network cover 100 divisional offices and connects all the branches through a
Metro area network. LIC has tied up with some Banks and service providers
to offer on- line premium collection facility in selected cities. LICs ECS and
ATM premium payment facility is an addition to customer convenience.
Apart from on-line kiosks and IVRS, info centres have been commissioned at
Mumbai, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhi,
Pune and many other cities. With vision of providing easy access to its
policyholders, LIC has launched its SATELLITE SAMPARK offices.

Life insurance and the principles applicable to it :-

1. Principle of indemnity - This is a principle of insurance which

50
indicates that the policyholder will not be compensated by the insurer

Page
beyond his economic loss. This regulatory principle is not as relevant to
life insurance as it is to property insurance. In life insurance, the payout
is not based on the value of the insureds life (as it is immeasurable);
instead the sum assured is paid at death.

2. Principle of contribution - This principle is relevant when the insured

holds multiple policies for insuring the same thing. It states that the
policyholder can raise a claim that equates to the loss from a single or
multiple insurers. If an insurer makes a payout that is equal to the full
claim amount, then he can recover a part of the payment from the
remaining insurers.

3. Principle of subrogation - This principle is the right for an insurance

company to legally approach a third-party for causing insurance losses
to the policyholder. This is done when the insurer pays for the loss to
the insured, and then pursues recovery of that amount. This is not
applicable to life insurance.

4. Principle of mitigation of loss - This principle indicates that the

person who suffered the loss should take action to minimise the loss,
such as the action of taking diligent care to minimise injury. Hence, this
is applicable to life insurance.

5. Principle of causa proxima or nearest cause - This indicates that

when a loss is due to multiple causes, the nearest one is considered to
decide the insurers liability to the insured. This principle is applicable
to life insurance.
FIRE INSURANCE:

51Page
Fire insurance covers damage or loss to a property because of fire. It is
a specific form of insurance in addition to homeowners or property
insurance, and it covers the cost of replacement and repair or reconstruction
above what the property insurance policy covers. Fire insurance policies
cover damage to the property, and may also cover damage to nearby
structures, personal property and costs because of not having the capacity to
live in or use the property if damages occur.

Homeowners should document the property and its contents, which

makes it easier to determine the value of items damaged or lost due to a fire.
A fire insurance policy may contain exclusions based on the cause of the fire,
such as not covering a fire caused by war.

The policy typically includes additional coverage against smoke or

water damage due to a fire. A fire insurance policy is usually set up for one
year. The policyholder may renew the policy according to the terms of the
policy.

Some standard homeowners insurance policies include fire coverage,

but others may not. This coverage may need to be purchased separately,
particularly if the property contains valuable items that are excluded from
coverage. The insurance companys liability is limited by the policy value
and not by the extent of damage or loss sustained by the property owner.
 52Page
Policy Coverage

Fire insurance covers a policyholder against fire loss or damage

brought about by the ignition of fire, electricity, lightning or explosion of gas,
natural disasters, and bursting and overflowing of a water tank or pipes.

Most policies cover a home regardless of whether the fire originates

from within the home or from outside the home. Coverage limits are
dependent on the cause of the fire. The policy reimburses the policyholder on
a replacement-cost basis in the event the property is lost, or on an actual cash
value basis for damages.

If the home is considered a total loss, the insurance company may

reimburse the owner for the current market value. If most of the possessions
were destroyed in the fire, typically the insurance company offers a market
value compensation for each item. For example, if a policy insures a home
for $350,000, the contents are usually covered for at least 50-70% of the
policy value, or $175,000 to $245,000. Many policies limit how much
insurance companies pay for items such as luxury paintings, diamond rings or
fur coats.

For example, a manufacturer purchases a property

insurance policy to protect itself from fires. The company
determines that the cost of relocating in the event of a fire
will be expensive, so it also purchases an extra expense
insurance policy. After an unexpected fire, the manufacturer
is forced to move to a temporary location. Its extra expense
insurance covers the cost of setting up a new phone and
Internet network, as well as the cost of connecting utilities.
Because the setup in the new location reduced the efficiency
of the manufacturing process, the company also had to spend
more money on overtime, which was also covered by the
policy.
 53Page
TYPES OF FIRE INSURANCE:-

The following kinds of policies are generally issued for fire

insurance:

Valued Policy.

Valuable Policy.

Specific Policy.

Floating Policy.

Average Policy.

Excess Policy.

Declaration Policy.

Adjustable Policy.

Maximum Value with Discount Policy.

Reinstatement Policy.

Comprehensive Policy.

Consequential Loss Policy.

Sprinkler Leakage Policies.

Add on Covers Policy.

Escalation Policy.
1. Valued Policy

54
The value of the property to be insured is determined at the inception of the policy.

Page
2. Valuable Policy
The valuable policy is that policy where claim amount is to be determined at the
market price of the damaged propert

. Specific Policy
Where a specific sum is insured upon a specified property in case of a specified
period, the whole of the actual loss is payable provided it does not exceed the
insured amount.

4. Floating Policy
The floating policy is the policy taken to cover one or more kinds of goods at one
time under one sum assured for one premium and in relation to the same owner.

PRINCIPLES APPLICABLE IN FIRE INSURANCE ARE;

 55Page

Miscellaneous Insurance

Miscellaneous Insurance refers to contracts of insurance other than

those of Life, Fire and Marine insurance. It covers a variety of risks, the chief
of which are Personal Accident insurance. Personal Accident insurance is
insurance for individuals or groups of persons against any personal accident
or illness.
 Now a days it is very popular in India. This policy provides cover

56
against any loss or damage. To property by fire, explosion, riot or strike,

Page
malicious damage, burglary, house - breaking, theft, robbery or hold-up or
being carried, conveyed, distributed outside specified premises for the
purpose of business. To furniture, fixtures and fittings as well as other
business appliances inside the premises.

Types of Miscellaneous Insurance

Laptop Insurance :- In todays digitally driven world, it

is hard to imagine staying without laptops, tablets and mobile phones.
Laptops are used heavily not just while working but also in schools and
colleges. We have moved from writing to typing. However, laptops are not
pocket friendly and the prices depend on the model and features of the laptop
as well. In a scenario when a laptop becomes faulty or is lost, what can
customers do? In addition to losing a lot of money that they paid for the
laptop, they will also lose all their documents and work that has been saved in
the device. Although they may not receive their documents back, they may be
able to receive the amount they paid

Mobile Insurance :- Over the past few years, the

smartphone industry has undergone massive changes. From being an item of
luxury, smartphones have now become a necessity, aiding us in almost
everything that we do. When first introduced, smartphones offered very basic
features. However, the smartphones being rolled out now are equipped to
allow you to manage your entire personal and professional life on one single
device. beyond the functionality they offer, smartphones have become a
status elevator in terms of spending abilities and style.

Crop Insurance :- Agriculture in India is easily one of the

countrys major occupations. Approximately 52% of Indians depend on the
crops that they yield for their livelihood. Agriculture contributes 16% to the
overall GDP of the country. Unfortunately, agriculture in India can be a risky
business for farmers because of the chances of natural disasters (floods,
droughts etc.). The fluctuating prices of agricultural products are a source of

57
worry too. For the sake of farmers in the country, the government has

Page
launched crop insurance to lighten the heavy risk associated with agriculture.

Property Insurance:- The main essence of insurance is

to make the policyholder or his dependents financially stable even after a loss
be it life, health or a property. Policyholders are levied a small fee towards
premium which will guarantee that the insurance company will bear the
burden of sudden, uncertain loss occurring in future. A Property Insurance
will offer coverage for companies, individuals and other related entities
against natural and man - made perils. Property Insurance, apart from
covering general properties like home, machinery, equipments, stocks,
furnitures and fixtures, will also include liability covers.

Burglary Insurance: - A burglary insurance policy

may be offered for a house or for a business unit. This policy covers assets
like cash, securities and valuables kept inside the property and other stocks
inside the property premises.

Credit Insurance: Credit Insurance is a type of insurance

policy that is used to pay off existing debts in cases such as death, disability
and in some cases, unemployment. Credit insurance protects the policyholder
from the lender from the borrowers inability to repay the loan or debt due to
various reasons. The insurance policy will pay the lender on behalf of the
policyholder.

Marine Insurance:
The sea poses many risks that include bad weather, water damage and
pirates. Insurance companies offer cargo insurance, freight insurance and hull
insurance on ships and boats. Marine insurance not only provides financial
protection for the ship but also the cargo being transported. Find out the best
marine insurance policies designed to suit your needs.

Liability Insurance:
 Liability insurance covers specific needs in cases where individuals or

58
companies need protection against risks that involve being legally held or sued for

Page
negligence, malpractice or injury. Some business operations involve a great deal of
risk, and employers might find the need to insure themselves or the business
against such risks.

Annuities Insurance:
A dignified retirement is what many of us hope for and for this insurance
companies offer schemes to ensure you are financially secure once you are not
working. Annuity is an investment product that guarantees you income for a certain
number of years or till your demise.

Pets Insurance:
Pets can become our beloved family members. Taking out a pet insurance
policy will help in covering veterinary expenses in case of any medical problems
and injuries. These policies will also pay out if the pet is stolen or in case of its
demise to cover funeral expenses.

Mortgage Insurance:
Mortgage insurance is important for two reasons, one, the policy will cover
your mortgage in the event that you cannot pay it back. Two, the insurance policy
can make you eligible for a loan when you dont meet the criteria otherwise. Get a
policy to cover your mortgage to ensure your credit score doesnt take a hit in the
event you fall behind on your payments.

Business Insurance:
Business insurance applies to those enterprises that have their own premises
wherein contents or stock are held. This insurance policy will cover public liability
as well as fires and other defined events that could disrupt the functioning of the
business. Any business is a means of livelihood and profit and its important to
insure it with a good insurance policy. .
Workers Compensation Insurance:

59
Page
Workers Compensation Insurance can help employers to
avoid being sued and going through legal course of action in case
an employee is injured during the course of employment. The
insurance will provide wage replacement and medical benefits to
employee. This policy is important for employers who run
businesses where the chances of injuries are high.
 60
Page
CHAPTER 5

CONCLUSION

Conclusion
 According To The Research Done By Me, I Came To Know

61
That Insurance Is Growing Very Fast. There Was Higher Growth In

Page
Revenue Insurance Sector; There Are Chances Of High Fraud And
Misleading.

Principles Of Insure Stand Are 7 Pillars To Avoids Any Kind

Of Unfair Trade Practice. This Principle Enchases The Confidence Of
Public In Insurance

In Todays Technological Worlds Insurance Is Just Not A Tool

To Safe Guard Against The Risk But Also A Investment Appointees ,
Hence These Is High Need To Avoid Higher Gains But Means Of Miss
Presentation, Non Discloser Of Facts, Insider Information Etc
 62
Page

Bibliography
 63
Page
Bibliography

Gopalakrishna C Insurance Principles And Practice, Stedling

Publishers Pvt. Ltd,

Dinsdale W.A. Elements Of Insurance, Himalaya Publishers

Romeo S, Mascarenhas Innovation In Banking And Insurance

Bankbazzar.Com

Chandrashakar Iyer Central Banking(Ty.Bbi

Textbook Sem Vi)