Tamilnadu Samacheer Kalvi 11th Commerce Notes Chapter 15 Insurance Notes
→ Insurance is a means of providing against loss caused by natural or man-made factors.
→ “Insurance is a plan by themselves which large number of people associate and transfer to the shoulders of all, risk that attacks to individuals” – According to John Merge
→ Indemnity means security or compensation against loss or damages.
→ “The principle of indemnity is not applicable to life insurance because one cannot estimate the loss due to the death of a person”
→ The word ‘Causa proxima’ means ‘nearest cause’.
→ The same subject matter may be insured with more than one insurer then it is known as ‘Double Insurance’.
→ Subrogation means‘stepping the shoes on others’.
→ Life insurance provides protection to the family at premature death of an individual.
→ Life Insurance should more properly be called as “Life Assurance” because the risk insured here is certain and natural. Only the time of occurrence is uncertain.
→ The policy is taken up jointly, on the lives of two or more persons is known as Joint Life Policy.
→ Fire insurance is a contract whereby the insurer, in consideration of the premium paid, undertakes to make good any loss or damage caused by a fire during a specified period upto the amount specified in the policy.
→ Marine insurance is a contract of insurance under which the insurer undertakes to indemnify the insured in the manner and to the extent thereby agreed against marine losses.
→ When a ship is insured against any type of danger, it is known as hull insurance.