Indemnity
Muhtasari
Insurance exists to put you back on your feet, not to make you rich. That single idea is the principle of indemnity, and it quietly governs almost every claim ever paid. It explains why a three year old laptop is not replaced with a brand new one, why a trader who insures a shop for less than it is worth recovers less than the fire destroyed, and why the insurer, not the insured, usually decides whether to repair or to pay cash.
In this lesson you will learn what indemnity really means, the four ways an insurer can deliver it, and the limits that decide how much money actually reaches the claimant: the sum insured, average, the excess and the franchise. You will work through the calculations examiners set every year, meet the two classes of insurance to which indemnity does not apply at all, and learn the traps that cost candidates easy marks.
Malengo
- Define indemnity and explain how it restores the insured to the former financial position
- Explain why indemnity prevents the insured from profiting from a loss
- Describe the methods of providing indemnity: cash payment, repair, replacement and reinstatement
- Explain the operation of average, excess, franchise and the sum insured as limits on indemnity
- Identify the contracts of insurance to which indemnity does not apply and explain why
Ramani ya mawazo
Mada hii imechorwa ili uone jinsi mawazo yanavyounganika.
Kadi za kumbukumbu
Mazoezi ya haraka ya kumbukumbu kuhusu kinachopimwa katika mada hii.
Maelezo ya Somo
Jisajili ili Uendelee
Tengeneza akaunti ya bure ili kupata rasilimali zote za kujifunza, maswali ya mazoezi, na kufuatilia maendeleo yako.
Tathmini ya Somo
Hongera kwa kukamilisha somo la Indemnity. Sasa kwa kuwa umechunguza dhana na mawazo muhimu, ni wakati wa kuweka ujuzi wako kwa mtihani. Sehemu hii inatoa mazoezi mbalimbali maswali yaliyoundwa ili kuimarisha uelewaji wako na kukusaidia kupima ufahamu wako wa nyenzo.
Utakutana na mchanganyiko wa aina mbalimbali za maswali, ikiwemo maswali ya kuchagua jibu sahihi, maswali ya majibu mafupi, na maswali ya insha. Kila swali limebuniwa kwa umakini ili kupima vipengele tofauti vya maarifa yako na ujuzi wa kufikiri kwa makini.
Tumia sehemu hii ya tathmini kama fursa ya kuimarisha uelewa wako wa mada na kubaini maeneo yoyote ambapo unaweza kuhitaji kusoma zaidi. Usikatishwe tamaa na changamoto zozote utakazokutana nazo; badala yake, zitazame kama fursa za kukua na kuboresha.
- The principle of indemnity means that the insured is: A. Paid the original cost of the property B. Restored to the same financial position held immediately before the loss C. Paid the cost of replacing the property with a new one D. Paid the sum insured in every case Answer: B
- Which of the following is NOT a method of providing indemnity? A. Cash payment B. Repair C. Replacement D. Subrogation Answer: D
- Property worth 2,000,000 naira is insured for 1,500,000 naira under a policy subject to average. A fire causes a loss of 800,000 naira. How much will the insurer pay? A. 800,000 naira B. 600,000 naira C. 500,000 naira D. 1,500,000 naira Answer: B
- Which of the following is NOT a contract of indemnity? A. Fire insurance B. Motor own damage insurance C. Life assurance D. Marine cargo insurance Answer: C
- The first amount of every claim which the insured must bear is called the: A. Franchise B. Excess C. Salvage D. Premium Answer: B
Jisajili ili Uendelee
Tengeneza akaunti ya bure ili kupata rasilimali zote za kujifunza, maswali ya mazoezi, na kufuatilia maendeleo yako.
Jisajili ili Uendelee
Tengeneza akaunti ya bure ili kupata rasilimali zote za kujifunza, maswali ya mazoezi, na kufuatilia maendeleo yako.
Vitabu Vinavyopendekezwa
Maswali ya Marudio
Unajiuliza maswali ya zamani kuhusu mada hii yanaonekanaje? Hapa kuna idadi ya maswali kuhusu Indemnity kutoka miaka iliyopita.
Swali 1 Ripoti
List and explain five principles of insurance.
Maelezo ya Majibu
Five principles of insurance
- Utmost good faith (uberrimae fidei): Both parties to the contract, and especially the proposer, must disclose all material facts truthfully and completely. Concealment or misrepresentation of a material fact makes the contract voidable at the option of the insurer.
- Insurable interest: The insured must have a legal or financial relationship with the subject matter such that he benefits from its safety and suffers loss from its damage or destruction. Without insurable interest the contract is void because it would amount to gambling.
- Indemnity: The insurer undertakes to restore the insured, so far as money can, to the exact financial position he occupied immediately before the loss, no better and no worse. This prevents the insured from making a profit out of a loss. (It does not apply to life and personal accident.)
- Subrogation: After indemnifying the insured, the insurer takes over the insured's legal rights and remedies against any third party responsible for the loss, so that the insurer can recover its outlay. This supports the principle of indemnity.
- Contribution: Where the same risk is insured with more than one insurer, each insurer shares the loss rateably in proportion to the sum it insured, so that the insured recovers only the actual loss once and not more.
A further principle is proximate cause, under which the insurer is liable only where the nearest, most effective cause of the loss is a peril insured against.
Jisajili ili Uendelee
Tengeneza akaunti ya bure ili kupata rasilimali zote za kujifunza, maswali ya mazoezi, na kufuatilia maendeleo yako.