Page 296 - Misc Ebook IC 78

The Insurance Times

certificates, bank deposit receipts, life insurance policies
etc, and their subsequent duplicate issuance. Since there
is no guarantee that the original documents have perished,
or they have not fallen into wrong hands who might
misuse them, there is an element of risk in the duplicate
issuance.

The authorities concerned, therefore ask for an
indemnity from the insurance company before issuing
the duplicate. The insurers indemnify the authority
issuing the duplicate or paying any sums under the
missing documents, against any loss that it might
sustain as a result of its having issued a duplicate
documents.

The insurers, while granting such indemnity, usually
always obtain a counter indemnity in order to safeguard
their interests. In view of the preponderance of moral
hazard, such indemnities are granted only to known
persons, about whose integrity and honesty they are fully
satisfied. These indemnities are usually valid for several
years.

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