Question

Match the correct pairs :

Group “A”		Group “B”
a.	Life Insurance	1.	Claim made by insured
b.	Mitigation of loss	2.	Perishable goods
c.	Premium	3.	Insurable interest
d.	Cold storage	4.	Maximum loss
e.	Warehousing	5.	Transfer of goods from one place to other
		6.	To minimise the loss
		7.	Imported goods
		8.	Principle of indemnity
		9.	Storage of goods
		10.	Payment made by policy holder

Answer 1

The above columns can be correctly matched as:

Group A		Group B
a.	Life insurance	8.	Principle of indemnity
b.	Mitigation of loss	6.	To minimise loss
c.	Premium	10.	Payment made by policyholder
d.	Cold storage	4.	Maximum loss
e.	Warehousing	9.	Storage of goods

a. According to the principle of indemnity, the insurer assures the insured that he/she will bring the insured back to the position he/she was in prior to the occurrence of an uncertain event. Because in case of life insurance, there can obviously be no compensation for the life lost, the principle of indemnity is inapplicable here.

b. Mitigation is the principle that states that the insured must take all necessary measures and steps to control and minimise the loss. In other words, the insured should not remain inactive when an accident occurs.

c. A fixed, regular, periodic payment made by a policyholder for his/her insurance is called premium. The policyholder pays the premium periodically which covers him against the risk for a fixed period of time under a given insurance plan.

d. Cold storage is used to preserve goods that are perishable in nature, i.e., the goods that get destroyed easily. Fish, dairy products, fruits, flowers, etc., are generally kept in these storage warehouses at very low temperatures so that they can be preserved for a longer duration and used later on.

e. Some goods are produced in a specific period but are consumed or demanded throughout the year. These goods are stored in warehouses to ensure their regular supply in the market. Warehouses also perform various functions such as consolidation, bulk breaking and stock piling.