Ic01 - Chapter 06

The Principle of Insurable Interest is defined by

• Insurance Companies

• Court of Law

• Insurance Act 1938

• Policy Conditions

Sanjay wants to insure his Vintage cars. The Valuation of Sum Assured is done by mutual consent , known as

• High Value

• Agreed Value

• Mutual Value

• Consent Value

Proximate Cause is known as the ----- cause

• Most Risky

• Biggest

• Closet

• Immediate

The principle of indemnity ensures that

• Insurance contract cannot be used to make a profit

• Insurance should not be taken by high risk people

• Insurance cannot be taken by politicians

• Insurance can br used to make profits

The Principle of Subrogation & Contribution does not applies to

• Life Insurance

• Personal Accident Insurance

• Only A

• Only B

• Both A & B

In General, the principle of contribution is also termed as

• Half Insurance

• Double Insurance

• Partial Insurance

• Joint Insurance

Indisputability clause is applicable to only ------- insurance policies & comes under section -----

• Health , 43

• Motor, 45

• Life , 45

• Life , 51

Mahesh has finalised a resale of property which he plans to purchase 3 months later. The current owner has not taken property insurance and Mahesh is worried that the property may be destroyed or damaged due to some peril. What can Mahesh do..?

• Mahesh can take the property insurance for the property right away as he has the right to protect the property that he is going to purchase in future.

• Mahesh can take insurance for the property only after he becomes legal.owner of the property

• Mahesh can exercise any of the above options.

• Mahesh can't take insurance for that property as property insurance can be taken only by the first owner of the property

The Principle of contribution works on the basis of proportionate

• Liability

• Insurance

• Losses

• Indemnity

The Principle of contribution works on the basis of proportionate

• Liability

• Insurance

• Losses

• Indemnity