Page 387 - Misc Ebook IC 78

Miscellaneous Insurance

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.
There are no standard premium rates for this indemnity,
because the risk varies from case to case.

The authorities issuing duplicate documents or paying
any sums under the missing document have to obtain
the cover.

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