Page 316 - Misc Ebook IC 78

The Insurance Times

Q1. Write about :

(i) List out the principles that guide Personal Accident
Insurance.

Ans. The principles that guide Personal Accident
Insurance are:

(a) Utmost good faith - the disclosing of all facts in total
good faith while applying for a cover needs to be followed
very strictly. The details regarding the condition of health
of the proposer are best known to him only and he should
declare everything clearly to the insurers.

The duty of disclosure also arises during the currency
of the policy. For example, the insured should
immediately notify the insurer any change in his
occupation. Similarly, a corporate frequent traveller
should inform the company in case of any material
change in his health condition.

(b) Indemnity - 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

Website: www.bimabazaar.com Call: 033-22184184 / 40078428 312

Copyright@ The Insurance Times. 09883398055 / 09883380339