Licentiate Examination - IC 11 - Practice of General Insurance Exam - Important Points
Page 32 Of 52
Go to:
- Videos on Subrogation Principle - Click
here for Video - Contribution - Applicable to only non-life insurance. one cannot gain more from insurance than one has lost through the peril. If the same property is insured with more than one insurance company, the compensation paid by all the insurers together cannot exceed the actual loss suffered.
- Contribution - There will be times when the same Insurer property is insured by two different insurers under different polices. As long as there is more than one policy covering same property, same interest, same peril the loss will be shared proportionately between the insurers concerned (one insurer will control the claim and then recover appropriate amount from the other insurer/s.)
- Cover Notes - a cover note is issued to confirm protection under the policy. It gives description of cover. Validity of cover note is usually for a period of a fortnight and rarely up to 60 days
- Cover notes - predominantly in marine and motor classes of business. Marine Cover Notes - issued when details required for the issue of policy such as name of the steamer, number of packages, or exact value etc. are not known.
www.realsoftinfoplan.com