Indemnity
Akopọ
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.
Awọn Afojusun
- 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
Àwòrán ọpọlọ
A ti ṣe àwòrán kókó yìí kí o lè rí bí àwọn èrò ṣe so pọ̀.
Káàdì ìrántí
Ìdánrawò kíákíá lórí ohun tí wọ́n ń dán wò nínú kókó yìí.
Akọ̀wé Ẹ̀kọ́
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.
Ìdánwò Ẹ̀kọ́
Oriire fun ipari ẹkọ lori Indemnity. Ni bayi ti o ti ṣawari naa awọn imọran bọtini ati awọn imọran, o to akoko lati fi imọ rẹ si idanwo. Ẹka yii nfunni ni ọpọlọpọ awọn adaṣe awọn ibeere ti a ṣe lati fun oye rẹ lokun ati ṣe iranlọwọ fun ọ lati ṣe iwọn oye ohun elo naa.
Iwọ yoo pade adalu awọn iru ibeere, pẹlu awọn ibeere olumulo pupọ, awọn ibeere idahun kukuru, ati awọn ibeere iwe kikọ. Gbogbo ibeere kọọkan ni a ṣe pẹlu iṣaro lati ṣe ayẹwo awọn ẹya oriṣiriṣi ti imọ rẹ ati awọn ogbon ironu pataki.
Lo ise abala yii gege bi anfaani lati mu oye re lori koko-ọrọ naa lagbara ati lati ṣe idanimọ eyikeyi agbegbe ti o le nilo afikun ikẹkọ. Maṣe jẹ ki awọn italaya eyikeyi ti o ba pade da ọ lójú; dipo, wo wọn gẹgẹ bi awọn anfaani fun idagbasoke ati ilọsiwaju.
- 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
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.
Awọn Iwe Itọsọna Ti a Gba Nimọran
Ibeere Atunyewo
Ṣe o n ronu ohun ti awọn ibeere atijọ fun koko-ọrọ yii dabi? Eyi ni nọmba awọn ibeere nipa Indemnity lati awọn ọdun ti o kọja.
Ibeere 1 Ìròyìn
List and explain five principles of insurance.
Awọn alaye Idahun
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.
Forúkọsílẹ̀ láti Tẹ̀síwájú
Ṣẹda àkọọlẹ ọfẹ kan láti wọlé sí gbogbo àwọn oríṣìíríṣìí ìkànsí ikẹ́kọ̀ọ́, àwọn ìbéèrè ìdánwò, àti láti tọpa ìlọsíwájú rẹ.