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Insurance is a contractual arrangement whereby one
party agrees to compensate another party for losses
    
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Insurance is a financial arrangement that redistributes
the costs of unexpected losses.
   
 
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Pncertainty about the outcome
If a loss is certain : there is no risk
Possibility that the outcome may be unfavorable
At least one of the possible outcomes should be
undesirable
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Is cause of loss
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Is a condition that may create or increase the chance
of a loss arising from a given peril
It increases the frequency and / or severity of the
peril
  

   

   

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Pnconditional The value


 eeting of inds exchanged between
the parties to the
Contract
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Insurance Agents while Insured :


soliciting new business legally Premium
are not offering to sell end ortointention
Promise
An follow the
egal Capacity
insurance. They aretoonly provisions and by
permitted stipulations
law in
enter
inviting the into ato make an
insured the insurance
Anti-social contract
purpose
Contract
offer. areInsurer
legally:
³Invitation to Treat´ Contingent Promise
unenforceable
   
  


Policies are not Exception :
 
   
 

transferable automatically ife, PA
to new owners einstatement Policies
Valued Policies
ore than one party may
Principle of Indemnity have Personal Contract
an insurable interest
in the same property
The Policy and Proposal
forms and other Actual Cash Value :
Insurablefiled
documents Interest
at the Ptmost Goodfaith
eplacement value -
time of insurance forms Depreciation
Parties to the contract
one single
know Actual Cash Value
in advance that Entire and Pndivisible
Contra proferentum
the monies they will
exchange will be
unequal
Doctrine of Adhesion Aleatory Concept
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½ ovable / Immovable
½ Animals / Insects / Birds / Fish
½ Crop / Plantation

½ On and
½ Off Shore
½ In Course of Construction / Installation ½ In Space
½ While kept / Installed / Stored
½ In Transit by ail / oad / Water / Air
½ echanically propelled and Vehicle not on ail
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Net Cost at which the materials are available to the insured on the date of
and at the place of loss
Insured¶s own expenses of storage, interest and such other ³HODING
CHAGES´ NOT to be included
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Net anufacturing Cost including Factory Overheads
In other words, the anufacturer¶s Ex-Factory Price less Administrative /
Sales Overheads and Net Profit
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Sum Insured to include Excise Duty

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Contract Price



Cost of aw aterials + other inputs and processing costs at any given
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Boilers
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by their own explosion / implosion
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Equipment temporarily removed for repairs, cleaning,
renovation or other similar purposes for a period of 60 days
are covered
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days
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insured other than by will or operation of law
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Increase in SI : Pro-rata
Decrease in SI : Short Period Scale
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ax. 2-
Additional Prem. : @-0 of Tariff ate
For Buildings, P& only. Not for Stock
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When certified claims experience by respective insurers is
not available - Provisional loading of 1- .
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Storage rate or 1.00 o whichever is higher
No Discounts for Silent risks
No Silent ates if a risk goes silent following a loss
under the policy
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1. Basic ate
2. - reduction for Sprinklered blocks if applicable âSect. III, IV, V, VI ).
3. eduction in rates for deletion of STFI & S TD if opted out
4. Extra for µKutcha¶ construction â on 1-2-3 )
-. Discount / oading for Claims experience â 1-2-3-/+4 )
6. FEA Discount on protected blocks â1-2-3-/+4 )
7. Discount for voluntary deductibles on the total premium calculated on the basis of
final rate worked out as above
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