ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The insurance company is responsible for paying the total compensation awarded by the Tribunal. The owner and the Insurance Company have an absolute duty to pay the compensation under Section 149(1) of the Motor Vehicles Act, 1988.

Detailed explanation-2: -General insurance covers the loss or damages caused to all the assets and liabilities. The insurance company promises to pay the assured sum to cover the loss related to the vehicle, medical treatments, fire, theft, or even financial problems during travel. Health Insurance: Covers the cost of medical care.

Detailed explanation-3: -The Principle of Indemnity The insurance company promises to compensate the policyholder for the amount of the loss up to the amount agreed upon in the contract.

Detailed explanation-4: -Liability insurance policies cover the insured against any claims arising out of bodily injuries and damages to the property of any person. Besides covering the legal costs involved, liability insurance provides coverage for payouts that the insured is legally liable to pay.