Insurance Policies and Claims

Anmol Jeevan is a pure term assurance plan offered by LIC, which provides death benefit coverage without any survival or maturity benefits.

Jeevan Akshay is a well-known immediate annuity (pension) plan offered by LIC, providing regular income to the policyholder.

Jeevan Akshay is an annuity plan, Jeevan Aadhar is a disability plan, Bima Nivesh is a single premium plan, and Jeevan Nidhi is a pension plan. None of these are pure term assurance plans.

Jeevan Tarang is a well-known insurance plan offered by the Life Insurance Corporation of India (LIC). The other options listed are not standard LIC product names.

Right answer because Assignment can be made by a separate instrument in writing as well as by endorsement. In assignment, all the rights and liabilities are transferred to the assignee, so it can be made by transferring in the name of assignee on the policy itself, or by a seperate instrument in writing. 

External risk is not a type of pure risk as there is chance of gain also along with the loss. External risks are the risk which result from forces outside the business. For instance changes in market conditions, political changes, technological conditions etc are external risks. If there are changes in market conditions and the price is increased of the product, due to increase in demand it would result in profits or gain or vice versa.

The commercial value of life insurance policy implies that it can be used as a collateral security to raise loans. It improves the continuity and credit-worthiness of business. A businessman can get a life policy on the life of his debtor to ensure repayment of his debt, or replacement of assets in the form of sinking fund policy.

In this policy, the insurer himself reserves the right to replace the property destroyed or damaged by fire.In this the property is replaced and cash is not paid as compensation. It is also called replacement policy so it is the right answer here.

Insurance is a method of dividing risk. As insurance is based on the law of large numbers, it is a method of sharing risks. A large number of persons exposed to a risk contribute to a fund which is utilised to compensate the very few who actually suffer the loss from the insured risk.

When the same risk is insured with two or more insurers, it is known as double insurance.Double Insurance is not applied to life insurance. As a contract of life is not a contract of indemnity and, therefore, double insurance is not applied to life insurance. A person can take any number of policies on his life and recover the full amount. For instance A takes policy of life insurance of Rs 50,000 and Rs 1,00,000 from S and T Companies respectively. On expiry of a fixed period, A can recover Rs 50,000 and Rs 1,00,000 from both the S and T Companies so it is right answer here.

Right answer because risk of price fluctuation cannot be insured and no policy is available to cover the risk of changes in price of a product. The uncertainity of change in price cannot be forecasted and so it is a non-insurable risk.

 Right answer Because the life insurance is not a contract of indemnity, because life cannot be indemnified and the amount for which policy is taken is  recoverable. It is a contingent contract. For instance a policy is taken by Mr W of Rs 2 lakhs and he dies the whole amount of Rs 2 lakhs is recoverable.

Right answer becasue in this policy the subject matter is insured for a specified period of time, usually not exceeding one year. It contains a ' continuation clause ' that if the the voyage is not completed within the specified period, the risk shall be covered until the voyage is completed. So continuation clause is in this policy.

This warranty implies that ship is fit in all respects when it starts sailing. The ship must be suitably constructed, properly manned and equipped, sufficiently fuelled that is the main reason that it is right answer here.

Right answer because in Fleet Policy several ships belonging to the same owner are insured for one sum and one premium. This saves shipping company from the botheration of arranging a seperate policy for each vessel. For instance a shipping company owns four ships and takes one policy for the four ships.