Utmost Good FaithAn redress skip is cognize as a postulate of Uber rima Fide or a contract based on utmost good faith. It means both the parties essential disclose all stuff facts. Any fact is material which goes to the root of the contract of redress and has a bearing on the risk involved. It is only when the insurer knows the whole truth that he is in a position to judge:- (i) whether he should relieve the risk, and (ii) what premium he should charge. Concealment of any fact forget entitle the insurer to deprive the assured of benefits of the contract. Also, as insurance shifts risk from one party to another, it is essential that there mustiness be utmost good faith and mutual government agency between the insured and the insurer.IndemnityA contract of insurance is a contract of indemnity. It means that the insured, in fiber of expiration against which the policy has been issued, shall be salaried the actual amount of loss not portentous the amount of the policy, i.e. he shall be overflowingy indemnified. The object of every contract of insurance is to place the insured in the equal financial position, as nearly as possible, after the loss, as if the loss has not taken place at all. This is applicable to all types of insurance except life, personal accident and disease insurance.
A contract of insurance does not remain a contract of indemnity if a fixed amount is paid by the insurer to the insured on the happening of the aftermath against, whether he suffers a loss or not. Like, in case of life insurance, the insurer is liable to pay the sum mentioned in the policy on the death, or expiry of a received period.Insurable concernIt means that the insured must have an actual interest in the subject outlet of insurance. A contract of insurance effected without insurable interest is void. A person is state to have an insurable interest in the subject matter if he is benefited by its existence and has suffered by the financial loss by its destruction. The object of...If you want to get a full essay, order it on our website: Ordercustompaper.com
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