Q1. a. subrogation b. causa proxima c. insurable interest d. uberrima fide i. 7. endobj Insurance Definition: Insurance refers to a contractual arrangement in which one party, i.e. Under the policy, goods have been insured against damage likely to be caused by sea water. Through this hole, sea water has entered into the ship and damaged the goods insured. Revise your Insurance notes multiple times so that you don’t miss out on any of the marks in the LIC Assistant Mains 2019 exam. • If one of the insurers pays the whole loss, he is entitled to contribution from other insurers. (c) Foreign Banks. So, it does not apply to life insurance. Insurer pays the claim money only if the nearest cause is insured. Insurance MCQ Questions is important for the preparation of exams like LIC EXAM, IRDA, UIIC, NICL, NIACL, and OICL. 2019 Mains, Types of Insurance in India – Download the free E-book, Glossary of Important Insurance Terms – Download the Ebook, Role of IRDAI in India’s Insurance Industry, SBI PO Complete Practice Course – for Advanced Level Aspirants, ICMR Assistant Exam 2020 – Complete Test Series: Attempt Now, IBPS PO 2020 Mock Tests – Attempt a Free Mock Test Now, Attempt a Free SEBI Grade A Mock Test here, Insurance Notes & MCQs – Principles of Insurance. 1. {{{;�}�#�tp�8_\. No insurance claim can succeed unless the loss is proximately caused by a peril insured against. vi) Causa Proxima: In a contract of insurance, the governing rule is the proximate cause to fix the liability of the insurer. Example of Principle of proximate cause A ship was severely torpedoed and was in the process of sinking. Page-4 section-1. Insurance Terminology – Assurance v/s Insurance, Crack All IBPS Exams – Join Mega Banking Online Course Now, Bank of Maharashtra Recruitment 2019 – For Generalist Officers | Scale- II & Scale III, Coding Decoding and Input Output Online Class: For IBPS Clerk & Other Bank Exams, SBI PO Online Course 2020 – Join to Guarantee your Success, Bolt – Monthly Current Affairs PDF | Free GK eBook Download, Best Telegram Group for Banking Aspirants, Oliveboard PODCASTS – A Simpler Way to Learn. c) Principle of Proximate Cause We know that all risks are not insurable. Life Insurance: It is a form of investment offering savings, It is an insurance contract, which covers the life-risk of the person insured. 74 U.S. (7 Wall.) • If the risk insured is the remote cause of the loss, then the insurer is not bound to pay compensation. Vidya Gaur Insurance Law July 25, 2019. Q14. c) Principle of Contribution Any written information regarding it is insurance correspondence. In popular terms a dialect it is famous as non-life insurance. It applies to any insurance which is a contract of indemnity. Proximate cause means the active, efficient cause that sets in motion a train of events which brings about a result, without the intervention of any force started and working actively from a new and independent source. d) Principle of Indemnity In such case nearest cause of the accident is found out. EXAMPLE OF PRINCIPLE OF INEMINTY MR. 4. • Insured must have the insurable interest on the subject matter (IV) Causa Proxima: The insurer indemnifies if the loss arises only from the nearest cause. 1. If goods are stolen due to faulty packing, the insurer does not indemnify the loss. The nearest cause should be insured by the insurer, only then the insurer liability comes into picture and policy holder will be paid. If the cause is not fire but some other cause remotely connected with fire, it is not recoverable, unless specifically provided for. Principle of Cause-Proxima (nearest cause: - Principle of Causa-Proxima means when a loss is caused by more than one causes, the proximate (nearest) cause should be taken into consideration to decide the liability of the insurer. Renovation is done only to the parts of the house which are affected by the fire. Insurance from the date of the application until the policy is issued or the application is rejected. Direct or immediate: "The stock market crash in October, 1929 ... is often regarded as ... the major proximate cause of the Great Depression" (Milton Friedman). Question 3. insurance company or the insurer, agrees to compensate the loss or damage sustained to another party, i.e. • According to it, after the insured is compensated for the loss caused by the damage to the property insured by him, the right of ownership to such property passes to the insurer after settling the claims of the insured in respect of the covered loss. Principle of Causa Proxima (a Latin phrase), or in simple english words, the Principle of Proximate (i.e Nearest) Cause, means when a loss is caused by more than one causes, the proximate or the nearest or the closest cause should be taken into consideration to decide the liability of the insurer. Insurance Definition: Insurance refers to a contractual arrangement in which one party, i.e. The two words are commonly in use together, but there is a fine distinction between the two. Causa Proxima It is a rule of law that in actions on fire policies, full regard must be had to the causa proxima. Immediate or proximate means Proximate in efficiency and not necessarily in time. This is a very important principle of insurance which an insured person should be aware about. The two words are commonly in use together, but there is a fine distinction between the two. This also means the insurer (insurance company) has the legal right to claim any future gains from the said property for any recovery and/or settlement. • Insured must have the insurable interest on the subject matter. • If the proximate cause is the one which is insured against, the insurance company is bound to pay the compensation and vice versa. Principle of proximate cause /causa proxima Q.17 Write down the need of insurable interest. BANKING & INSURANCE: INSURANCE Insurance is a contract to pay compensation in certain eventualities (e.g., death, fire, theft, motor accident) in return for a… Close Menu. CAUSA … • It applies to fire and marine insurance. • Corporations also have insurable interests in the life of their employees, a) Insurable Interest So, it does not apply to life insurance. Understanding Insurance Principles: Loss Minimization And Causa Proxima (Part 3) Leave a comment; In the advent of any occurrence of uncertain event, it is the utmost duty of the insured to make sure that if controlled, minimality of loss on the damaged insured property should be taken into account. "Causa causans... (means) a cause which causes while causa sine qua non means ... a cause which does not, in the sense material to the particular case, causa, but is merely an incident which precedes in the history of narrative of events, but as a cause in not in at the death and hence is irrelevant." In return to which the insured pay premium for a fixed period of time. • Loss is reimbursed, or liability will be repaid on the occurrence of an uncertain event. The nearest cause of the damage caused t… The companies using this type of receipt place a time limit usually from 30 to 60 days. d) Principle of Indemnity ... By means of Tort where a third party causes the insured loss or damage. 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