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Category: English Composition
Date Submitted: 06/11/2016 05:04 AM
Fundamental Principles of Insurance
FUNDAMENTALS and PRINCIPLES OF INSURANCE
Life Insurance covers insurance of human beings.
General Insurance comprises of
a. Insurance
of
property
against
fire,
burglary
etc,
b. Personal
insurance
such
as
Accident
and
Health
Insurance,
and
c. Liability
insurance
that
covers
legal
liabilities
etc.
In case any of these principles are missing the insurance contract will become
void.
Student Notes
PRINCIPLES OF UTMOST GOOD FAITH
To consider a ‘Life Insurance’ proposal the insurer needs to
know
•
•
•
•
Personal
details
of
the
proposer
Personal
Health
details
of
the
proposer
Family
Health
particulars
of
the
proposer
Previous
Insurance
details
of
the
proposer
etc.
To consider ‘General Insurance’ proposal the insurer needs to
know
a) Details
of
the
property
to
be
insured.
b) Previous
details
of
the
property
/
accidents
etc.
The insurer is entirely dependent upon the proposer for the
above details.
The proposer on the other hand knows or is supposed to know
everything about the above details.
Fundamental Principles of Insurance
CSC – VLE Training
Utmost Good faith - Contd
Hence there is a need for Utmost Good Faith on the part of the proposer.
Both the insurer and the client should ensure that
a) Client
discloses
all
correct
and
complete
information
in
the
proposer
to
the
insurer
i. Insurer
does
not
withhold
any
information
from
the
client
such
as
Standard
features
of
the
policy
ii. Premiums
/
Discounts
as
per
standard
policy...