Which of the following principle is not applicable in life insurance?
Principle of indemnity is not applicable to life insurance.
What is applicable life insurance contract?
In legal terms, life insurance is a contract between an insurance policy holder (insured) and an insurance company (insurer). Under this contract, the insurer promises to pay a pre-decided sum of money (also known as “Sum Assured” or “Cover Amount”) upon the death of the insured person or after a certain period.
Which of the following is not applicable in life insurance contract Doubtnut?
The contract of indemnity is defined as, ” A contract where one party promises to save the other from the loss caused by the conduct of the promisor himself or by the conduct of any other party.” In a life insurance contract, nobody can save the life of the person. Hence, contract of indemnity does not apply here.
Which of the following is not a principle of insurance?
Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.
Which of the following is not an indemnity contract?
Personal Accident is not a contract of indemnity. Type of insurance cover (such as property insurance, but not personal accident insurance) that only restores the insured to his or her original financial position. The insured cannot gain from a contract of indemnity.
What are the 4 types of insurance?
Different types of general insurance include motor insurance, health insurance, travel insurance, and home insurance.
What are the essentials of a life insurance contract?
Features of Life Insurance
It is a contract concerning human life. There must be no clear assurance that the payment is due upon the person’s death. The contract provides for payment of lump sum money. The sum shall be paid at the expiry of a certain term or upon the person’s death.
Which of the following principle is not applicable in LIC?
In the case of life insurance policies, the principle of indemnity does not apply. The indemnity principle means that the policy payout should restore the insured to the same financial position in which he was before the loss happened.
What is not a type of general insurance?
There is a distinction between the types of insurance one is life insurance and other is non-life or general insurance. As an individual, you will be covered under the Life insurance policy. The reimbursement under the policy can be withdrawn on the event of death or maturity of the policy.