Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
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How indemnity works? - Individual has taken insurance, Individual suffers a loss, Individual makes a claim, Insurance company indemnifies individual
Indemnity in life insurance - Principle of indemnity does not apply to life insurance, Life insurance contracts are Value Contracts, There is no need to asses extent of loss, In case of death, full sum assured is paid in life insurance policies.
Agreed value policies - On special types of properties such as artwork, paintings, obsolete machinery, vintage cars etc., arriving at a valuation is difficult. In such cases, the insured and the insurance company agree on a fair value for the property and an agreed value policy is issued.
Ways of indemnifying in general insurance - Cash Payment, Reinstatement, Repair, Replacement
In general insurance, the manner in which the principle of indemnity is applied depends on the following: - class of insurance, subject matter such as property, liability, etc., type of policy
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