Page 61 - Misc Ebook IC 78

Miscellaneous Insurance

insured has to prove a pecuniary loss arising out of
the insured contingencies. In a Court Bond however,
a demand from the appropriate authority of the
amount guaranteed for failure in the discharge of
obligations, the sufficient.

(v) Commercial guarantees are normal annual contracts
which the insurers may renew at their option , but
court bonds are automatically renewable, unless the
insurers do not intend to renew the bond.

(vi) In a commercial guarantee the person guaranteed
is not a party to the contract whereas in a court
bond, he is.

(vii)Commercial guarantees are stamped with the
ordinary insurance stamps, whereas, the court bonds
have to be stamped in accordance with the stamp
duty prescribed for deeds and documents, under
seal.

(viii)The cover under a commercial guarantee is
restricted in scope as compared to a court bond.

(ix) Under the commercial guarantees often the
assistance of the insured is sought by the insurers

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