Mid Term Examination, March 2017
B.A.LL.B. (HONS.)
Semester VIII X Law of Insurance (Opt.)
Max. Marks: 20 Max. Time: 1:30 Hrs.
Note: Answer any TWO questions out of three. All questions carry equal marks.
1. According to the will of his parents, Dharmendra would get the legal ownership of the farm house on 2nd April 2017. There was a grand party in the same farm house on 3rd March 2017- on the eve of Dharmendra's 25th Birthday. During the party, some fire performers were called to perform. Dharmendra didn't want anything to go wrong; therefore to prevent himself from any loss he took fire insurance on the farm house on 1st March 2017 claiming that he has contingent interest. Unfortunately, his fear turned into reality and during the party because of a mishap in a fire performance; farm house caught fire. Now, Dharmendra is claiming for reinstatement of farm house from the Insurance Company.
Answer the following question based on the given fact. (GIVE LEGAL REASONING FOR ALL THE ANSWERS)
a. Is it a valid insurance policy? Yes or No. Support your answer with case law.
b. What do you mean by Reinstatement? Assume that insurance policy is valid; can Dharmendra claim for reinstatement of farm house? Give reasons.
c. To call fire performers was the decision of Dharmendra. Will it be considered as breach of warranty and why? How many types of warranty are there and what is usually the result of breach of warranty? (Marks 3.5+3+3.5=10)
2. Mr. Mehra was injured in an accident and was unable to walk. While lying on the ground he caught cold which developed into pneumonia and as result of this, he died. Mr. Mehra had Personal Accident Policy which covers injury or death caused due to accident. Mr. Mehra's Nominee is claiming money under this policy but Insurance Company has refused to make the payment stating that cause of death is pneumonia- which is not covered under the policy. Should insurance money be given in this scenario? Support your answer with the help of case laws and legal reasoning.
Discuss the establishment and functioning of Life Insurance Corporation. (Marks
3. Deal with the following Statements:- (Marks
a. Contract of Insurance are not Indemnity Contract as per the provision of the Indian Contract Act. It means all Contract of Insurance are Contingent Contract not Indemnity Contract. True or False. Comment along with case laws and legal provisions (if required)
b. In-spite of non-payment of premium by insured, Insurer cannot terminate the insurance policy immediately. True or False. Comment along with case law and legal provisions (if required)