I.D.
END TERM EXAMINATION, APRIL 2017
B.A.LL.B. (HONS.)
SEMESTER-VIII X Law of Insurance
Max. Marks: 60 Time Allowed: 3:00 Hrs.
Note: Answer five questions including Question No. 1 which is compulsory. The number of marks
carried by each question is indicated at the end of the question.
1. Answer the following (each answer should be in approximately 100 words): (Marks 2×10=20)
a. Burglary and Theft are the two terms that can be used to depict same kind of insurance
policy. Do you agree with the statement? Justify your answer through legal reasoning.
b. What do you understand by "unvalued marine policy"?
c. Is jettisoning a peril of sea? Explain
d. "Laila" the ship was sailing from India to Srilanka. In the middle of the journey, few crew
members suffered from food poisoning; seeing that captain deviated from the path and
decided to go to Andaman, so that crew can get some treatment. While anchoring at the
port of Andaman- ship's hull hit something and accrues some damages. Will the insurance
money be given for this damage? Discuss
e. "Sea worthiness of ships and goods is an implied warranty under marine insurance." Is
this statement correct? Comment
f. Tata Locomotive Ltd, took 1 lakh rupees and 50,000 rupees burglary insurance from ABC
Ins. Co. and XYZ Ins. Co. respectively. On 15th April 2017 burglary took place of 50,000
rupees from their business premises and they got that indemnified from ABC Ins. Co.
Now ABC Ins. Co. is claiming 25,000 rupees from XYZ Ins. Co. Will XYZ Ins. Co. be
forced to give 25,000 rupees? Explain
g. During a voyage some damage occurred to the ship but damage was discovered two days
after the voyage policy ended. Will that damage be indemnified? Reason
h. What does earned and unearned premium means?
i. Can motor vehicle insurance be taken on horse carts used for transport?
j. In India how suicide is dealt with respect to Life Insurance Policy. Discuss
2. Radha along with her thirteen year old daughter went to meet her friend in the privately
owned hospital. Her friend was the owner of the hospital. Radha couldn't find the parking so
she parked the car in the corner of the building and asked the guard to keep a watch for 2mins
as she will be back soon. As Radha went inside, her daughter Pihu who was waiting in the
car; step outside the car to sit in the garden of the hospital. Pihu forgot to close the door of the
car and another car who came up from the parking through that corner itself bumped into the
gate; as Radha parked the car there itself. Now the owner of the other car is claiming damages
from Radha. Will Radha get insurance money from her insurance company to pay off third
party liability and also recover damages caused to her car? Discuss
General rule of insurance is that premium once paid it cannot be refunded. But this general
rule also has some exception. Explain those exceptions with the help of case law and legal
provisions. (Marks
3. Is Life Insurance a Contract of Adhesion? Explain.
Mr. Liliput committed murder on 2nd January 2016 and after a long trial he was given capital
punishment for the same. As per the order of the court Mr. Liliput was to be hanged on 14th
April 2017 at 5.00 am. One of his Life Insurance policies maturity date was 14th April 2017
(12 am) itself. His nominee didn't claim from other insurance policies but claimed for this
maturity date one; arguing that the policy matured before the death itself, so insurance money
should be given to him. Nominee should get insurance money or not? Explain. Also discuss
the reason that why nominee didn't claim from other insurance policies.
(b)What is cover note in Fire Insurance? Discuss its importance and what happens if covered
risk takes place during cover note phase. Also mention the case law in support of your
reasoning. (Marks
PTO
4. Discuss the establishment and function of the regulatory authority of Insurance Sector. Do
you think Insurance Regulator has a sufficient power or is just a weak regulator? Also give
your opinion regarding the current appellate authority of insurance sector. Is Appellate forum
created right now is an appropriate forum to approach. Comment. (Marks 10)
5. What are different kinds of fire insurance policy? Can sub-bailee take fire insurance on the
property?
(b)Titanic incident is world famous. A huge vessel sank during its maiden journey. A similar
kind of event took place and owner of the ship has claimed for indemnification but insurance
company has refused to give the money. Insurance company has claimed that ship collided
with ice berg and couldn't turn because the liver used to turn the vessel was not properly
working from the beginning of the journey. Along with this even Captain was negligent in
keeping the check in the sea. Therefore no indemnification would be done. This issue has
come up in your court. Decide whether the insurance money should be given or not. Give
legal reasoning. (Marks
6. Is Assignment possible in the Insurance? Can ownership of insurance policies be transferred
without the novation of the insurance contract? (Marks 10)
7. Insurance Law has been evolving since ages. Every incident has been a learning lesson for
people and led to the growth of new type of insurance. Discuss in detail history and evolution
of Insurance. (Marks 10)