A live project on the ‘FUNDAMENTAL PRINCIPLES OF INSURANCE ADOPTED IN THE LIFE INSURANCE POLICY’
Submitted to: Submitted by:
Mr Nagraj K Nikita Agrawal (8NBBP078)
Faculty : Legal Environment of Business Akshat Lahoti (8NBBP039)
SEM II Sec B
Legal Principles of Insurance:
1. Good Faith (Ubberimae Fide).
2. Insurable Interest.
3. Law of indemnity.
4. Proximity of Clause.
6. Mitigation of Loss.
Standard Clauses in Life Insurance Policy:
The life insurance of a person is a contract by which the insurer in consideration at a certain premium, either in a gross sum or periodical payments, undertakes to pay the person for whose benefit the insurance is made, a stipulated sum, or annuity equivalent, upon the death of the person whose life is insured.
The common life insurance policy contains the following information:
1. The name of the plan governing the policy.
2. Whether it is participating in the profits or not.
3. The basis of participation in profits such as cash bonus, deferred bonus, simple or compound revisionary bonus.
4. The benefits payable and the contingencies upon which they are payable and the other terms and conditions of the insurance contract.
5. The details of the riders attached to the main policy.
6. The date of commencement of insurance and the date of maturity or dates on which the benefits are payable.
7. The premia payable, periodicity of payment, the date the last instalment of premium will be due, the implication of discontinuing the payment of instalment(s) of premiums and also the provisions of a guaranteed surrender value.
8. The age at the entry and whether the same has been admitted.
9. The policy requirements for
(a) Conversion of the policy into paid up policy.