Banking and Insurance Services

 It is in Real Time Gross Settlement that the transfer of funds takes place continuously during the business hours from one bank to another. The transactions are settled as soon as possible.

In this kind of policy the amount is not payable before the death of the assured. Hence, the policy money or amount becomes payable only to the legal heir of the assured.

 The principle of causa proxima is not applied to life insurance. In life insurance just the sum assured is paid on the maturity period or death whichever is earlier, and hence the principle of nearest cause is not applicable.

It is not an example of actual total loss, but constructive total loss. When the ship is stranded by dashing against rock, the ship is not wholly destroyed that is the ship can be recovered, but the cost of repairs or recovery is greater than the value of the ship saved. In actual loss we cannot recover the ship or the property. 

 When the goods are dispatched by rail or road transport for shipment, a single policy may cover all the risks from the point of origin to the point of destination, which is block policy. Thus, block policy covers the risk of land ( rail or road transport ) and the risk of water also ( ship transport ).

This statement is not correct about written communication. Immediate feedback is not possible in case of written communication. The sender of the message has no opportunity to judge the reaction from the facial expression of the receiver, as it takes time to receive the message by the receiver.

 The principle of subrogation implies that after the insured is compensated for the loss or damage of the property insured by him, the right of ownership of the property passes on to the insurer.

Telefax is used for transmitting sketches. The chart or diagram is first sketched on paper. This is wrapped around a cylinder in machine and sent. The sender makes contact with the receiver by telephone. 

Inchmaree clause covers the loss or damage caused to the ship by the errors in its navigation. It also covers the loss due to other latent factors. The actual global positioning of the ship is lost due to errors in its navigation. 

Fidelity insurance is a protection against cashier. Bank, loan companies and other businesses commonly use such insurance policies for cashiers and other employees who handle company funds. The employer is insured against loss upto the amount of policy.

Bonded warehouse is the warehouse that is used to accept imported goods. Bonded warehouses are licensed by the government to accept imported goods before the payment of tax and customs duty by the importer of such goods. Hence, bonded warehouse is used for international trade as goods are imported from another country.

 The life insurance is a contract of assurance. In life insurance the sum assured is bound to be paid sooner or later. The insurer is bound to be paid the policy amount either on the death of the insured or on the expiry of time period of policy whichever is earlier.

It is a financial service. Factoring is the selling of a company accounts receivable at a discount to a factor, who assumes the credit risk of account debtors and receives cash as the debtors settle thier accounts. 

The function of price stabilisation is not actually performed by warehouse keeper, but is automatically performed by warehousing or storing the goods in the warehouses. When there is excess supply, goods can be held back in warehouses to avoid fall in prices. When there is shortage of goods, the goods can be supplied from warehouses to avoid rise in prices. Hence, there is price stabilisation just by storing the goods in warehouse.

 It is not an allied service of bank but its main service. Commercial banks provide the facility of funds transfer from one place to another through instruments such as bank drafts, pay orders etc. The bank has to provide this facility mandatorily.