Prateek Yadav rent the consignment of sacks of rice to his importer in London in the vessel of
Shriya shipping and logistics company . Parteek Yadav got his consignment insured against
seaperils . There were few rodents on the ships . They made holes in deck of ships and damaged
Prateek Yadav goods .
On the basis of the given information about Prateek Yadav . answer the following question ?
(a) Identify the type of insurance policy parteek Yadav has taken for protection of his
consignment?
(b) What are the three main types of insurance policy highlited in part (a)?
(c) Do the insurance company is liable to pay the compensation explain the relevant principle
of insurance applicable? (6)
Shriya shipping and logistics company . Parteek Yadav got his consignment insured against
seaperils . There were few rodents on the ships . They made holes in deck of ships and damaged
Prateek Yadav goods .
On the basis of the given information about Prateek Yadav . answer the following question ?
(a) Identify the type of insurance policy parteek Yadav has taken for protection of his
consignment?
(b) What are the three main types of insurance policy highlited in part (a)?
(c) Do the insurance company is liable to pay the compensation explain the relevant principle
of insurance applicable? (6)
Dear Student
a) The type of insurance policy Prateek Yadav has taken for the protection of his
consignment is Marine insurance.
b) The three main types of insurance policy highlighted in Marine Insurance are - - Liability Insurance
- Hull Insurance
- Marine Cargo Insurance
c) Yes insurance company is fully liable to pay the compensation as marine insurance cover all risks. Also applicable principles of insurance are - (i) Utmost good faith: Both the insurer and the insured should have faith in each other and in the contract signed by them.
(ii) Insurable interest: It implies that the insured must have some interest vested in the object which is being insured by him.
(iii) Indemnity: According to the principle of indemnity, the purpose of an insurance contract is to bring back the insured to the same financial position as he or she was before the loss occurred to him or her (because of a mishap).
(iv) Proximate cause: The proximate cause principle states that the reason for a loss or damage to the insured object should be related to the subject matter of the contract.
(v) Mitigation: The insured should take care of the insured object in the same way as he or she would have in the absence of the insurance.
Regards
a) The type of insurance policy Prateek Yadav has taken for the protection of his
consignment is Marine insurance.
b) The three main types of insurance policy highlighted in Marine Insurance are -
- Liability Insurance
- Hull Insurance
- Marine Cargo Insurance
(i) Utmost good faith: Both the insurer and the insured should have faith in each other and in the contract signed by them.
(ii) Insurable interest: It implies that the insured must have some interest vested in the object which is being insured by him.
(iii) Indemnity: According to the principle of indemnity, the purpose of an insurance contract is to bring back the insured to the same financial position as he or she was before the loss occurred to him or her (because of a mishap).
(iv) Proximate cause: The proximate cause principle states that the reason for a loss or damage to the insured object should be related to the subject matter of the contract.
(v) Mitigation: The insured should take care of the insured object in the same way as he or she would have in the absence of the insurance.
Regards
