AMITY INTERNATIONAL SCHOOL , SEC 46, GURUGRAM

Chapter-4 Business Services

SUBJECTIVE/CASE BASED/CBQ ASSIGNMENT
Q1. A husband took the life insurance policy of his wife. After one year the couple got divorced
and later after two years the wife died. Will husband get compensation from the insurance
company? Give reason.

Q2. A company has undertaken a fire insurance policy for Rs 5 lakh. After two months due to
fire, it incurred a loss Rs 2 lakh. How much amount company get as compensation? Explain

Q3. A factory owner took a fire insurance policy for his factory without informing the insurance
company that he received notice from electricity department to get the wiring of the factory
repaired. After 6 months of taking policy, the factory got fire due to faulty wiring. Will the factory
owner get compensation for the loss due to fire? Which principle of insurance is related with this
case. Explain the principle.

Q4. Mr. Verma, the owner of 'Verma Steel Industry' does the wholesale trade in utensils. Some of
the utensils are made in his factory itself and some others he purchases from other
manufacturers. Everyday, he has to make payments to several other traders. He wants that as
soon as he deposits money in his bank it should be credited to the account of the receiver without
any delay. On enquiring from the bank, he learnt that through e-banking there are two systems
available for transferring money from one bank to another.
Explain the two systems of the fastest possible money transfer system through banks.

Q5. Garima goes to 'State Bank of India' to open a savings account there. On visiting the bank she
learns that there is a type of bank account which is better than savings account. The specialty of
this account is that when the deposited amount in the account exceeds a certain amount, the
amount in excess gets transferred into the fixed deposit. The interest earned on the fixed deposit
account is more than that on the savings amount. This account serves the purpose of both the
savings account and fixed deposit. Garima gets this account opened.
Name and explain the type of bank account discussed in above para.

Q6. The owner of 'Gunjan Fertilizers' Roshan opened a current account in 'The Punjab National
Bank'. The customer can often withdraw money from the current account up to the amount
deposited in it. One day he needs money more than the balance in account. He was worried about
how to arrange the money. He needed this amount for a day or so. One of his friends told him
that the customers having a current account in the bank can get permission to withdraw money
more than the balance in the account after making as agreement with the bank.
Identify the facility provided by the bank referred to in the above case. Write a short note.

Q7. Sarthak has taken a loan from Siddharth against the security of his factory. Can Siddharth take
the fire insurance policy of that factory? Explain.

Q8. Arun took a marine policy to cover the goods exported by him. Under the policy goods have
been insured against damage likely to be caused by sea water. During the voyage, a hole was
caused in the bottom of ship. Through this hole, sea water entered into the ship which damaged
the goods insured. Can Arun claim compensation for the loss? Explain
 Q9 A transport company took an accident insurance policy for all its vehicles. A truck of that
company carrying oranges met with an accident. Due to that accident, there was no damage to
oranges, but oranges were unloaded from the truck and reloaded to another. Due to time wasted
in unloading and reloading the oranges got spoiled. Will the company get compensation for loss
of oranges from the insurance company or not? Which principle is related to this case? Explain

Q10 Mr. Sangam took an insurance policy against his car and after three months he sold it to Mr.
Sunil. The car was stolen from outside Mr. Sunil's house. Mr. Sangam made a claim to the
insurance company. His claim was rejected on the ground that Mr. Sangam was no longer owner
of the car, so he has no insurable interest, and he has no financial loss with the loss of the car.
(a) Was Mr. Sangam right in making the claim? Give reason in support of your answer.
(b) Who can claim compensation?

Q11. Insurable interest is a fundamental principle of insurance. When should it be present in the
case of i) life insurance ii) fire insurance iii) marine insurance?

Q12. Why is life insurance considered as a contract of assurance?

Q13. While India is considered to have reported the least number of divorces in the world till
date, there has been a drastic rise in the same-amounting to doubles and triples- in Mumbai,
Delhi, Bengaluru, Kolkata and Lucknow in the past 5 years. According to a Hindustan Times report,
8347 divorce cases were filed in Kolkata in 2014 (by November 30), which is a 350% increase from
the 2,388 divorce cases in 2003. According to the MARRIED WOMEN'S PROPERTY ACT, 1874, The
woman should maintain a separate account in her name for her salary. The in-laws or the
husband have no right over the earnings of a woman, be it acquired, earned, or gifted during her
marriage or after. Further, a woman has full rights on the policies made by her or by her husband
who made them for her future benefits.
a) Which two main business services are talked about in the above news report?
b) Identify the principle related to one of the business services (as identified in part a) which is
required to be applicable only at the time of initiating the contract.