Page 30 - Misc Ebook IC 78

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platforms, is the actual cost of production excluding
anticipated profits. The policy is subjected to Excess of
30% of Sum Insured on earthwork/mud work and salt
stored on each platform affected by loss. The rate of
premium is 15% for earthwork/mud work and 30% for
stored salt.

Q6. (a) The Personal Accident insurance is
deemed to be a benefit policy. Why is it
so? Elaborate by giving examples.

(b) Which are the free additional benefits
available under the individual personal
accident policy?

(c) Name the two additional benefits
(extensions) provided , for which
additional premium has to be collected
under Personal Accident Insurance?

Ans.a) The Personal Accident policies are not strictly contracts
of indemnity. This is because life is precious and cannot
be compensated by money. However on practical
consideration a measure of indemnity does come into

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