Business PCL I MKT Fin Banking & Insurance Industry Operations Assignment A

8/3/2019 Business PCL I MKT Fin Banking & Insurance Industry Operations Assignment A

1/8

Assignment Assessment Report

Campus: Year/semester

Level: Assignment Type

Module Name: Assessors Name

Students Name: Reqd Submission Date

e-mail id & Mob No Actual Submission Date

Stream Submitted to :

Certificate by the Student:

Plagiarism is a serious College offence.I certify that this is my own work. I have referenced all relevant materials.

(Students Name/Signatures)

Expected Outcomes Assessment Criteria Grade based

on D,M,P,R

system

Feedback

General Parameters

Clarity Clear understanding of

the concept

Analytical Thinking- Ability to analyze theproblem realistically

Research Done- Research carried out to

solve the problemFormatting &

Presentation-

Concise& clear

thinking along with

presentation

Subject Specific Parameters

1.Design a research

program

2.Conduct research

3.Presentation (bothwritten and oral)

Assignment Grading Summary (To be filled by the Assessor)

OVERALL ASSESSMENT GRADE:

TUTORS COMMENTS ON

ASSIGNMENT:

SUGGESTED MAKE UP PLAN

(applicable in case the student is asked

to re-do the assignment)

REVISED ASSESSMENT GRADE

TUTORS COMMENT ON REVISED

WORK (IF ANY)

Date: Assessors Name / Signatures:

Grades Grade Descriptors Achieved Yes/No (Y / N)

P A Pass grade is achieved by meeting all the requirements defined.M Identify & apply strategies/techniques to find appropriate solutions

D Demonstrate convergent, lateral and creative thinking.


2/8

WLCI

PCL

NAME:


3/8

Q1.Explain Marine Insurance and discuss its various clauses.

Marine Insurance

A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the

assured, in the manner and to the extent agreed, against losses incidental to marine adventure.

There is a marine adventure when any insurable property is exposed to maritime perils i.e. perilsconsequent to navigation of the sea. The term 'perils of the sea' refers only to accidents or

causalities of the sea, and does not include the ordinary action of the winds and waves. Besides,

maritime perils include, fire, war perils, pirates, seizures and jettison, etc.

There are four types of marine insurance:-

Hull Insurance: - covers the insurance of the vessel and its equipment i.e. furniture

and fittings, machinery, tools, fuel, etc. It is affected generally by the owner of the ship.

Cargo Insurance: - includes the cargo or goods contained in the ship and the

personal belongings of the crew and passengers.

Freight Insurance: - provides protection against the loss of freight. In many cases,

the owner of goods is bound to pay freight, under the terms of the contract, only when the

goods are safely delivered at the port of destination. If the ship is lost on the way or thecargo is damaged or stolen, the shipping company loses the freight. Freight insurance is

taken to guard against such risk.

Liability Insurance:- is one in which the insurer undertakes to indemnify againstthe loss which the insured may suffer on account of liability to a third party caused by

collision of the ship and other similar hazards.

In a contract of marine insurance, the insured must have insurable interest in the subject matter

insured at the time of the loss. Insurable interest is not required to be present at the time of taking

the policy. Under marine insurance, the following persons are deemed to have insurable interest:-

The owner of the ship has an insurable interest in the ship.

The owner of the cargo has insurable interest in the cargo.

A creditor who has advanced money on the security of the ship or cargo has

insurable interest to the extent of his loan.

The master and crew of the ship have insurable interest in respect of their wages.

If the subject matter of insurance is mortgaged, the mortgagor has insurable interest

in the full value thereof, and the mortgagee has insurable interest in respect of any sum due

to him.

A trustee holding any property in trust has insurable interest in such property.

In case of advance freight the person advancing the freight has an insurable interest

in so far as such freight is repayable in case of loss.


4/8

The insured has an insurable interest in the charges of any insurance policy which he may

take.

Types of Marine Insurance Policies:-

Voyage policy: - is a policy in which the subject matter is insured for a particular voyageirrespective of the time involved in it. In this case the risk attaches only when the ship starts on

the voyage.

Time policy: - is a policy in which the subject matter is insured for a definite period of time. The

ship may pursue any course it likes; the policy would cover all the risks from perils of the sea for

the stated period of time. A time policy cannot be for a period exceeding one year, but it may

contain a 'continuation clause'. The 'continuation clause' means that if the voyage is not completedwithin the specified period, the risk shall be covered until the voyage is completed, or till the

arrival of the ship at the port of call.

Mixed policy: - is a combination of voyage and time policies and covers the risk during particularvoyage for a specified period of time.

Valued policy: - is a policy in which the value of the subject matter insured is agreed upon

between the insurer and the insured and it is specified in the policy itself.

Open or Un-valued policy: - is the policy in which the value of the subject matter insured is not

specified. Subject to the limit of the sum assured, it leaves the value of the loss to be subsequentlyascertained.

Floating policy: - is a policy which only mentions the amount for which the insurance is taken out

and leaves the name of the ship(s) and other particulars to be defined by subsequent declarations.Such policies are very useful to merchants who regularly dispatch goods through ships.

Wagering or Honor policy: - is a policy in which the assured has no insurable interest and the

underwriter is prepared to dispense with the insurable interest. Such policies are also known as

'Policy Proof of Interest (P.P.I).

Q2.What is the types of motor insurance policies?

Explain the features of a personal accident policy.

Motor Insurance or vehicle Insurance is all about protecting against financial losses arising out of

vehicle usage. With the multifold rise in usage of four wheelers, motor Insurance is also termed as Car

Insurance or Auto Insurance. Auto Insurance is one of the most common types of general insurance

products. Car Insurance is mandatory by law and protects you and the people riding in your car from

any legal claim or penalty made by a third party. Family members who may drive you car can also be

covered through auto insurance. Car insurance rates have been steadily rising in India over the past

few years. Therefore it becomes very important that you get best insurance rates for your car.


5/8

Types of Motor Insurance:

The word Motor broadly covers a lot of classes of vehicles plying on the roads. These may be two-

wheelers like scooters and motorbikes, three-wheelers or four wheelers like private cars, jeeps, buses,

trucks, commercial taxis and other vehicles.

Car Insurance: This is the fastest growing segment in the insurance sector as car insurance ismandatory while buying a new car. Major car manufacturers are tying up with leading insurance

companies to provide quick insurance to its customers. Car insurance covers loss or damage by

accident, fire, lightning, riots, earth quake, hurricane, terrorist attacks, explosion, theft, third partysclaims and damages (like liability for third party injury or death, third party property and liability to

paid driver). On payment of appropriate additional premium it covers loss or damage to electrical or

electronic accessories and other significant items.

Two Wheelers Insurance: Two wheeler insurance is another type of popular auto insurance in India. Itis governed by the Indian Motor Tariff. This insurance provides protection against natural and

manmade calamities like: fire, rockslide, landslide, storm, hurricane, flood, earthquake, burglary, theft,riots or any damage caused to the vehicle in transit by road, air, inland waterway or rail. Two wheelerinsurance provides mandatory personal accident cover of Rs. 1 lakh to the insurer. This accident cover

can also be opted for passengers. It also protects against legal liabilities arising due to third parties

injury/death or damage caused to its property.

Commercial Vehicle Insurance: This type of insurance covers all those vehicles which are not usedfor personal purpose. Trucks, buses, heavy commercial vehicles, light commercial vehicles, multi

utility vehicles, agricultural vehicles, ambulances etc are covered under this insurance. The premium is

calculated on the basis of the make and model of the commercial vehicle, place of registration, year ofmanufacture, current showroom price and whether the insurer is individual or corporate. Insurance

Companies in collaboration with the automobile manufacturing companies chalk out different kind ofeasy and less complicated plans for safe and easy insurance policy. HSBC India, New India Assurance,United India Insurance, Bajaj Allianz, ICICI Lombard etc are some of the prominent companies in

India which provide commercial vehicle insurance.

Personal Accident Insurance Features (Example of Reliance Insurance)

Accidents can happen anywhere, anytime and sometimes even the smallest of its kind puts your finances

in a fix. Reliance Individual Personal Accident Policy is one of the key security measures to undertakefor providing financial security in case of an accident. It ensures that your family does not suffer in

event of an accident by providing compensation for accidental death or disablement.

Key Highlights

Covers you against accident risks

Provides compensation to the family in case of accidental deathCompensation for injury whether temporary or permanent

Policy can be expanded to cover actual medical expenses arising out of the accident

Insured sum increases 5 per cent for each completed claim free year of insuranceInstant coverage

Simple and easy claim process


6/8

Personal Accident Cover for Private Car Owner

Reliance General Insurance provides the compulsory Personal Accident cover bundled along with thecomprehensive private car.

This policy is extremely critical and inexpensive at the same time providing cover to the insured against

Accidental Death and Permanent Total Disablement only while driving the vehicle.

This insurance policy covers you against accidents 24/7 anywhere in the world, whether you are driving

or otherwise.This is an optional cover for Rs. 10 lakhs. This cover is being offered to the owner-driver of the vehicle

for a period of 1 year at a very marginal cost of Rs. 827/- only.

Key features covered:

Death: In case of death of the insured due to an accident within the policy period, the nominee is

compensated with the Sum Insured (including acts of terrorism).

Permanent Total Disablement (PTD): Provides compensation against the permanent and total loss of

limbs, sight etc. due to an accident which leads to Total Disability (including acts of terrorism).

Personal Accident Cover for Two Wheeler Owner

Reliance General Insurance provides the compulsory Personal Accident cover bundled along with the

comprehensive Two Wheeler.

This policy is extremely critical and inexpensive at the same time providing cover to the insured againstAccidental Death and Permanent Total Disablement only while driving the vehicle.

This insurance policy covers you against accidents 24/7 anywhere in the world, whether you are driving

or otherwise.

This is an optional cover for Rs. 2 lakhs. This cover is being offered to the owner-driver of the vehiclefor a period of 1 year at a very marginal cost of Rs. 276/- only.

Key features covered:

Death: In case of death of the insured due to an accident within the policy period, the nominee is

compensated with the Sum Insured (including acts of terrorism).

Permanent Total Disablement (PTD): Provides compensation against the permanent and total loss of

limbs, sight etc. due to an accident which leads to Total Disability (including acts of terrorism).

Q3. The chief accounts officer of AB Insurance Company, who was in service with

the company for over 15 years, was the custodian of the cheque books. He has forged the

signature of the managing director on 50 cheques and misappropriated a total amount of Rs.15

lakhs during a period of four years. On discovery of the forgery, the company wanted the

bank to recredit the account with the amount in question. The bank refused to comply with

the request and took the following defense:

(i) Even if the cheque were forged, the company has acquiesced to the payment.

(ii) The company was stopped from its claim because it had not objected to the payments which were

brought to its notice through monthly statements and half yearly account.

(iii) The company was stopped from its claim since it was negligent in entrusting the custody of the

cheque books to the accounts officer leading to contributory negligence.


7/8

(iv) The suit was time barred since the company had not objected to the payment for a period of four

years.

- In view of the above defense taken by the bank, the company has proceeded against the bank and

the chief accounts officer and the issue is whether the suit is maintainable.

TASK 1

Introduction of the subject matter being discussed and the principle enunciated in the Law.

TASK 2

Enumerate the facts of the decided case on the point.

TASK 3

Explain the decision pronounced by the Court of Law in each of the decided cases including some

of the recent cases decided by Supreme Court/High Court.

The Principle Enunciated In the Law

Expert Evidence in India is guided by Sec.45 of the Indian Evidence Act, 1872 which states "Whenthe Court has to form an opinion upon a point of foreign law, or of science or art, or as to identity of

handwriting or finger impressions, the opinions upon that of persons specially skilled in such foreign

law, science or art, or in questions as to identity of handwriting or finger impressions are relevantfacts. Such persons are called Experts."Although there are instances where in accordance to Sec. 73

of Indian Evidence Act, 1872 Judges have formed their opinion with respect to

signatures/handwriting.

It has been stated in 78 IC 668 "We may say at the outset that no expert evidence was given in this

case on behalf of the defendant for the purpose of comparing this disputed signature with the

admitted signature of Sookias. The observations which the Judge has made have been made on hisown view of the signature. The practice of a Judge declaring whether a disputed signature agrees with

the other signature of a certain person without the assistance of any evidence but merely on his own

inspection has been disapproved by experienced Judges in many cases." "Before following an opinionabout geniuses of handwriting the court must consider the evidence of expert or the opinion of a

person familiar with the handwriting of an alleged writer of it. Forming of opinion on his own

observation without assistance of such evidence is illegal and improper"

The facts of the decided case on the point

In view of the above defense taken by the bank, the company has proceeded against the bank and the

chief accounts officer and the issue is whether the suit is maintainable?

Yes the suit is maintainable against the chief accounts officer because he was not able to

recognize the forged signatures, when he is paid for maintaining accounts but the suit is notmaintainable against the bank because bank is not responsible in case of the custodian. This is

happening from last four years which clearly shows the negligence of the managing director of

the company for not checking the details.


8/8

REFERENCES

http://business.gov.in/manage_business/marine_insurance.php

http://www.reliancegeneral.co.in/insurance/health-insurance/accident-insurance/features.aspx

http://www.newindia.co.in/per-accd.asp

http://www.rpsingh.com/caselaws.htm
http://business.gov.in/manage_business/marine_insurance.phphttp://www.reliancegeneral.co.in/insurance/health-insurance/accident-insurance/features.aspxhttp://www.newindia.co.in/per-accd.asphttp://www.rpsingh.com/caselaws.htmhttp://business.gov.in/manage_business/marine_insurance.phphttp://www.reliancegeneral.co.in/insurance/health-insurance/accident-insurance/features.aspxhttp://www.newindia.co.in/per-accd.asphttp://www.rpsingh.com/caselaws.htm

Documents

Business PCL I MKT Fin Banking & Insurance Industry Operations Assignment A