Page 2 - H3

1. What is insurance?
2. What is principle of Subrogation?

3/4 Marks Questions

1. What is utmost good faith?
2. What is principle of Indemnity?

4/5 Mark Questions

1. What are the functions of insurance?

5/6 Mark Questions

1. What are the fundamental principles of Insurance?

CASE STUDY

1. Manju obtained a life insurance policy of her husband. After 5 years, she divorced her
husband. After one year of divorce, her husband died in a car accident. Can she claim the amount
of policy from the insurance company?
2. A person gets his stock of goods insured, but he hides the fact that the electricity board has
issued him statutory warning letter to get his factory’s wiring changed later on, the factory
catches fire due to short circuit. Can he claim compensation? State the name of “Principle”.

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