Question

A. Identify the four (4) key terms in Insurance Law. B. Briefly explain what indemnity means in Insurance Law. C. Briefly explain what the ‘doctrine of subrogation’ means and discuss its effect on the parties to an insurance contract. (Word limit: Minimum of 200 words. Maximum of 300 words)

Answer 1

The key terms used in insurance law are;

1)ACCIDENT:This is an unexpected occuring of event that happens by chance & the same is not expected to occure normal course of events

2)BASIC RATE:This is the rate charged to insured for a perticular type of risk accepted by the insurer

3)CLAIM: This is a intimation or a notice to insurer that under the policy term, perticular loss may be covered

4)CLAUSE: This is used to identify a perticular part of a policy

INDEMNITY

Briefly., Indemnity may defined as compensating one party by other one.. This is based based on mutual contract between two parties that is to say , that is between insured and insurer, in which one party promises the other one to compensate the loss for payment of premium...

SUBROGATION

Subrogation is a case where the right of insurer to assume the right of insured. when the insurer has paid the loss to insured under the terms of policy, then insurer enters in to the shoes of insured.. He gets all the right and remedies belonging to insured against third party with respect to any loss covered by the policy.... In other words it may be understood that after settlement of loss , if insured gets any benifit, and it is the insurer entitle to recieve such benifit....