Page 319 - DMGT303_BANKING_AND_INSURANCE

Banking and Insurance

Notes Catastrophe: An event that causes a loss of extraordinary magnitude e.g. a hurricane or tornado.
CGHS: Central Government Health Scheme.
Disability Benefit: A feature added to some life insurance policies which provides for the waiver
of premiums upon the furnishing of proof that the insured has become totally and permanently
disabled.
Health Insurance/Mediclaim: Health Insurance also known as Mediclaim. It offers protection
against unforeseen medical emergencies.
Inchmaree Clause: Covers losses resulting from latent defect in hull and machinery of vessel and
losses resulting from errors in navigation or management of the vessel by master or crew.
Letter of Credit: A document issued by the buyer’s bank, through its foreign correspondent
bank, establishing a credit against which the seller may draw after complying with specific
instructions.
Marine Insurance: A contract whereby one party for an agreed consideration, undertakes to
indemnify the other against loss arising from certain perils and sea risks to which a shipment
and other interest in a marine adventure may be exposed during a certain age or a certain time.
Peril: The cause of a possible loss, such as fire, windstorm, theft, explosion, or riot.

Permanent Total Disablement (PTD): The permanent and total loss of limbs, sight etc. due to an
accident. Personal Accident insurance pays compensation against PTD.
Vessel: A passenger or cargo carrying boat or ship.

Voyage: A journey through water.

14.13 Review Questions

1. Define the following terms:
(i) Marine insurance
(ii) Marine adventure

(iii) Perils of sea
(iv) Voyage
(v) Marine policy
2. Explain the main features or essentials of a marine insurance contract.

3. Explain all the clauses related to a marine adventure in detail.
4. Define Contract of Marine Insurance. Explain briefly the various kinds of Marine Insurance
Policies.

5. What are marine losses? Explain various kinds of marine losses in brief.
6. Discuss in detail:
(i) General losses
(ii) Particular losses

7. Write about the documents required for filing a marine insurance claim.
8. Define abandonment. How and when is it done?

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