Page 31 - Misc Ebook IC 78

Miscellaneous Insurance

play. Majority of these policies are termed 'benefit
policies' as they are distinct from the indemnity policies.

This is because in the event of happening of an insured
event a specified sum of money is payable irrespective
of the amount of pecuniary loss actually suffered by
the insured or his dependents, which in any case cannot
be measured. However, this does not mean that the
insured can make unnecessary profit out of this policy.

When policies are issued to employers to reimburse
their employees or their dependents on the disablement
or the death of their employees, the insured are
indemnified with the exact amount of compensation
paid by them. Another example is that if a person earns
Rs 1000/month, but approaches an insurer with a 1
lakh personal accident insurance proposal, it is most
likely to get rejected.

Although it is difficult to specify the exact amount
of cover to be granted (as it varies from insurer to
insurer) usually a cover is granted of an amount

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