Page 53 - Misc Ebook IC 78

Miscellaneous Insurance

measured. However, this does not mean that the insured
can make unnecessary profit out of this policy.

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 equivalent to 60
to 72 months earnings of the insured.

The linking of the Capital sum insured to the earnings of
the person also ensured that the weekly benefits provided
to the insured in the event of temporary disablement is
not disproportionate to his actual weekly earnings.
However, this formula is not strictly adhered if the policy
is taken for Capital Sums only.

Principles of Subrogation - This principle does not
apply to contracts which are not of strict indemnity.
However, it is applicable in certain cases, for e.g, Videsh

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