MANAGEMENT

Detailed explanation-1: -A fire insurance policy has an average clause mentioned in it which takes care of the cases of under-insurance. If insured the assets in the fire insurance policy, for less than their full value, the insured requires to bear a proportion of the loss according to the average clause mentioned in the policy document.

Detailed explanation-2: –No insurer shall publish in 1[India] any return in a form other than that in which it has been furnished to the 2[Authority]: Provided that nothing contained in this section shall prevent an insurer from publishing a true and accurate abstract from such returns for the purposes of publicity.

Detailed explanation-3: -Principle of Contribution Contribution principle applies when the insured takes more than one insurance policy for the same subject matter. It states the same thing as in the principle of indemnity, i.e. the insured cannot make a profit by claiming the loss of one subject matter from different policies or companies.

Detailed explanation-4: -Average Policy This is a fire insurance policy that is insured if the property is under-insured, ie; insured for a sum smaller than the value of the property. The insurer must bear only the proportion of the actual loss which the sum assured bears to the actual value of the property at the time of loss.

Detailed explanation-5: -Costs incurred for the common benefit of the adventure, claims for general average and salvage disbursements are not recoverable; for example the cost of saving a vessel with cargo from common danger is not recoverable under Cl. 13.