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QUESTIONS
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What are conditions which must be met before an insurer pays any claim?
Answer
There must be loss suffered by the insured.
The insurer must be properly informed when this happen insurer sends a claim form to the insured which enables the insured person to send in details of the loss suffered.
The claim must be legal.
The insurance contract must be enforceable a problem would arise it is found that the insured did not disclose all material facts when completing the proposal form.
The insurance policy must cover the actual cause of the loss suffered e.g. losses from some cause like earthquake may sometimes be excluded from the insurance.
The size of the claim must be agreed.
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How do you take an insurance policy?
Answer
– Procedures / steps involved in taking an insurance general
a) a person has to go to an insurance broker who acts as intermediary between the company and person seeking insurance and give advise to the client on general matters relating to insurance.
b) the person wishing to be insured will fill in a proposal form
c) on receipt of the proposal form, the insurance company calculate the premiums (using its actuaries) and if necessary, may arrange to inspect the property before accepting the premium.
d) the insured pays premium and issued with a cover note as a proof that the premium has been paid
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What are reasons for the claim being rejected by insurer
If the insurance contract is invalid.
If the loss suffered by the insured was excluded because the insurance policy.
If the loss is deliberated caused by insured.
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What are losses involved in marine insurance?
Marine loss fall into
– Total loss
a. actual or absolute total loss
occur when the complete ship and cargo are lost e.g. a vessel leaves port and disappears completely.
Presumed total loss- is when actual total loss has been presumed as the ship concerned is missing and after lapse of a reasonable time, no news of her has been received.
b. Constructive total loss
Is when the ship and the cargo are so badly damaged that they are rendered completely useless
Or occurs where the subject matters is justifiably abandoned because its total loss appears unavoidable or where it is so damaged that it is commercially impracticable to restore it.
– Partial loss or average loss
Under marine insurance average loss signifies partial loss or damage to a property insured.
It may be total loss of the part of the goods insured or minor damage to the whole goods.
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Classes of partial loss
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Particular average
Means partial loss of damage accidentally caused to the vessel or to a particular cargo by the perils of the sea insured against e.g. damage by sea water , stranding, collision or fire, 120/= amounting to total loss. Particular average loss must be borne by the owner of the cargo suffering the loss.
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General average loss
Means any extraordinary loss damage or expenditure reasonably ad voluntarily incurred for the purpose of preserving all the interests(ship, cargo and freight ) imperiled in the common adventure like e.g.
– Cargo jettisoned to lighten the ship order to refloat her after stranding.
– Damaged to cargo by water used for extinguishing a fire.
– The cost of lowing a disabled vessel to port.
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