Page 155 - DMGT515_PERSONAL_FINANCIAL_PLANNING

Personal Financial Planning

Notes What is not payable under the policy?

War perils, Nuclear perils
Consequential loss, depreciation, wear and tear, mechanical or electrical breakdown
Damage suffered due to driving the vehicle under the influence of intoxicating liquor or
drugs
Claims arising outside the specified geographical area
Claims arising when the vehicle is driven by a person without valid driving license

Contractual liability

Notes

1. Transfers: In case of change of ownership, one must ensure to affect the transfer of
Insurance policy within 14 days from the date of transfer of ownership.

2. Change of Vehicles: A vehicle can be substituted by another vehicle for the same
class, for the balance period of a policy subject to adjustment of premium, if any, on
pro rata basis from the date of substitution.

3. De-tarrification: Uptill now the regulator was dictating the general insurance
premium tariff rates. Recently, the Insurance Regulatory & Development Authority
(IRDA) has notified that from 1st January 2007 all branches of Insurance except
Motor, the third party would be de-tariffed.

8.7.5 Marine Insurance

A contract of Marine insurance is defined by the Marine Insurance Act 1963 as “an agreement
whereby the insurer undertakes to indemnify the assured, in the manner and to the extent
thereby agreed, against losses incidental to marine adventure. It may cover loss or damage to
vessels, cargo, or freight”.
Section 2 (C&F) of the Marine Insurance Act, 1963 defines marine insurance and includes the
movables exposed to maritime perils. Movables mean movable tangible property, which includes
money, valuable securities and documents, etc.

Insurable Property

Insurable property means any ship, goods or other movables exposed to maritime perils.
Insurable property is also called the subject matter of insurance. Insurable property must be
stated in the policy with reasonable certainty.

Marine Adventure

There is a marine adventure, when –
1. Any insurable property is exposed to marine perils.

2. The earning of freight, passage money, commission, profit or other pecuniary benefit, or
the security for any advances, loans or disbursement is endangered by the exposure of
insurable property to maritime perils.

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