iii IC 38, slide number 5, English Version скачать в хорошем качестве

iii IC 38, slide number 5, English Version

Slide Number 5 The Seven Pillars Principles of Insurance Part One In many Indian markets we follow the rule of buyer beware meaning the customer must check the goods themselves. But in insurance we have a different rule. It is like a family relationship or a deep friendship. If you are not completely honest the trust breaks and the relationship fails. Insurance is built on one hundred percent honesty between the company and the customer. The first three pillars are the legal heart of every policy. The first is Uberrima Fides or Utmost Good Faith. This is a positive duty to voluntarily tell the truth about every material fact accurately. A material fact is anything that would change the company decision to give you a policy such as a health problem. If you hide the truth the contract becomes voidable meaning the company can legally refuse to pay. The second pillar is Insurable Interest. You must have a financial stake in what you are insuring. You must stand to lose money financially if the person or asset is damaged. You have an interest in yourself your wife your kids and your assets. The timing matters greatly. For Life insurance you need interest at the start or inception. For Marine insurance you need it at the time of claim. For Fire insurance you need it at both the start and the time of the claim. The third pillar is Proximate Cause. This is the active efficient cause that starts a chain of events. It is the first push that makes everything else fall. If a storm breaks a window and then rain ruins your furniture the storm is the proximate cause. It is not always the very last thing that happened but the dominant one that caused the damage. So these three pillars ensure that everyone is honest that you only insure things you actually own or care for and that we identify the true reason for a loss. Moving forward from these three rules there are four more pillars that deal with how the money is actually calculated.