insurance law 1st mid notes

Insurance Law — 1st Mid: Key Notes (Telugu + English)

Exam-ready, bilingual Insurance Law notes covering: Uberrimae Fidei, Insurable Interest, Average Clause, Surrender Value, Assignment vs Nomination, problem answers and model reasoning.

Introduction

These concise and authoritative notes are tailored for law students (LLB / BA-LLB) preparing for the 1st mid exam in Insurance Law. The bilingual format (English + Telugu) improves accessibility and organic reach.

Part A — Short Answers (English)

1. Doctrine of Uberrimae Fidei (Utmost Good Faith)

Insurance contracts demand full disclosure of all material facts by both parties. Concealment or misrepresentation can render the contract voidable.

2. Insurable Interest

Insurable interest means a legally recognized financial or other interest in the subject matter. Without it, the policy may be void as a wagering contract.

3. Average Clause

Applied in property insurance to discourage under-insurance. Claim = (Sum Insured ÷ Actual Value) × Loss.

4. Surrender Value

The cash value payable when a life policy is terminated before maturity (usually available after 2–3 years of premium payments).

Part A — Short Answers (Telugu)

1. Uberrimae Fidei (అత్యుత్తమ సద్భావన)

బీమా ఒప్పందాలలో పక్షాలు అన్ని ముఖ్య విషయాలను వెల్లడించాల్సి ఉంటుంది. దాచిపెట్టడం వల్ల ఒప్పందం రద్దయ్యే అవకాశం ఉంటుంది.

2. ఇన్షురబుల్ ఇంటరెస్ట్

బీమా విషయంపై ఆర్థిక ప్రయోజనం లేదా న్యాయపరమైన హక్కు ఉండాలి. లేకపోతే ఒప్పందం చట్టబద్ధం కాదు.

3. ఆవరేజ్ క్లాజ్

తక్కువ బీమా కోసం రేపటి క్లెయిమ్‌ను పరిమితం చేస్తుంది — బీమా మొత్తానికి అనుగుణంగా చెల్లింపు జరుగుతుంది.

4. సరెండర్ విలువ

పాలసీ రద్దు చేసినపుడు చెల్లే మొత్తము; సాధారణంగా 2–3 సంవత్సరాల తర్వాతనే లభిస్తుంది.

Part B — Long Answers (English)

1. Contract of Insurance: Fundamental Elements

• Utmost Good Faith (Uberrimae Fidei)
• Insurable Interest
• Principle of Indemnity (except life)
• Subrogation
• Contribution
• Proximate Cause

2. Assignment vs Nomination — Key Differences

Assignment: Transfer of ownership rights; assignee becomes owner and can sue; may be absolute or conditional.

Nomination: Appointment of a person to receive proceeds after insured's death; nominee holds funds as trustee for legal heirs and has no title.

Quick Comparison (useful for exams):

Assignment: Ownership transfer —> Assignee has title
Nomination: Receiver only —> Nominee holds proceeds in trust

Part C — Problem Solutions (Model Answers)

1. Liability of insurer for debtor’s life policy

Short answer: Yes — insurer liable to pay ₹5000 to creditor (B). Reason: creditor had insurable interest at inception; life insurance requires interest at inception only (Dalby v. India & London Life Assurance Co.).

2. Liability for theft following a fire

Short answer: Yes — insurer liable. Reason: proximate cause is the fire; theft arose from confusion and circumstances created by the insured peril, so loss is treated as fire-related.

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Insurance Law mid - 1

Insurance Law mid - 2

Insurance Law

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© Pavan Law Chambers — Insurance Law Notes. For citation or classroom use, please credit Pavan Law Chambers.

Keywords: Insurance Law, Uberrimae Fidei, Insurable Interest, Average Clause, Surrender Value