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Principles of Insurance
Principles of Insurance
PRESENTED BY:
CHAITHRA.G
CHAITRA.M.
CHANDNI.K.
DEVIKA.B.Z.
NIVEDITHA.C.
INSURANCE
Insurer
Insured
Premium
Policy
Subject matter
Insurable interest
Insurable risk
Insurable Risk
2) Property insurance
3) Liability insurance
4) Guarantee insurance
Fundamental principles of insurance
9) Commencement of risk.
10) Premium.
11) Causa proxima.
12) Mitigation of loss.
13) Contribution.
14) Subrogation.
15) Reinsurance.
16) Double insurance.
Distinction b/w double insurance and
reinsurance
Risk The same risk and same The transfer of part of the
subject in insured by the risk by the insurer.
policy holder.
Extent of The loss will be shared by all The re-insurer will be liable
liability of the the insurers. for a proportion of part of
insurer the loss.
To whom liable Each insurer is directly liable The re-insurer is liable only
to the policy holder. to the first insurer.
1) Uncertainty:
In both uncertainty is involved.
2) Amount :
In both money plays an important role.
3) Speculation :
both depends upon happening or non-happening of
speculative events.
Return of premium
1) No risk – no premium.
2) Doctrine of pari delicto.
3) Frustration and impossibility.
4) Non-disclosure of fact or mistake.
5) Fraud by the insurer.
6) Ignorance of the fact.
7) Fraud played by the insurance agent.
8) Cancellation/rescission.
9) Ultra vires the insurance company.
10) Surrender of the policy.