Principles Of Insurance

PRINCIPLES OF INSURANCE LAW Definition and Nature Its a stipulation whereby a party to the contract, ( insure) agrees to equitably transfer the study of a damage, to another, ( damages insurer) in exchange for fee (premium). An insurer is a company change the policy; an see to it, or policyholder, is the mortal or entity buying the redress policy. The insurance rate is a factor used to set up the mensuration to be charged for a current amount of insurance coverage, called the premium. allowance is an instrument of distributing the mischief of few among many. Its the collective magic spell uping of risks. The transaction involves the see assuming a guaranteed and known comparatively small loss in the variate of payment to the insurer in exchange for the insurers promise to hide (indemnify) the insure in the case of a financial (personal) loss. The insured receives a contract, called the insurance policy, which details the conditions and circumstances under which the insured will be financially compensated. The policies of insurance cover be mostly tribute contracts designed to compensate and relieve the insured from the burden of loss occasioned by the happening of a qualify risk and which the underwriter undertakes to bear in consideration of payment by the insured of a premium.

Apart from life insurance, insurance is a contract of indemnity under which the insurer undertakes to bear the risk of loss insured against and indemnify the assured on the happening of a specified event or events called the risk, in return for a mutually agreed premium. The concepts of risk and indemnity The concepts of risk and indemnity are best understoo d by distinguishing mingled with the contra! cts of assurance and insurance. The remainder lies in the main object or subject consequence of the contract. Insurance refers to events or incidents which may not occur e.g. fire, theft, accidents and so on the events in the policy might not be certain and may never occur whilst Assurance refers to...If you penury to generate a full essay, order it on our website: OrderEssay.net

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