Page 71 - Insurance Surveyors Book Ebook IC S01
P. 71
Survey And Loss Assessment IC-S01
The words in the policy are to be given their plain, ordinary and popular
remaining
The ordinary rules of grammar shall apply
Coinsurance
When it is not possible for the insurer to cover a large risk independently, it
usually engages another insurer for covering the risk. This practice is known as
coinsurance.
In coinsurance either each insurer may issue a policy with a specification giving
the description of the property including the coinsurance clause or the lead
insurer may issue a collective policy along with specifications attached with it or
the leading office may issue the policy & sign it on behalf of participating insurers
covering a collective insurance clause.
The names of insurers, the proportionate interest, the proportion of total sum
insured and total premium are as stated in the clause
The survey of risk, rating, collection of premium is carried out by leading office
that is the office carrying the largest share in the business.
Distinction between coinsurance and reinsurance
a. Coinsurance is distribution of a single business by many insurers. Reinsurance is
an arrangement concluded by one insurer with another.
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