insurance law 2nd mid notes

Insurance Law — 2nd Mid: Key Notes (Telugu + English)

Exam-oriented bilingual notes on fire & marine insurance: Average Clause, Assignment, Voyage, Incontestable Clause, types of fire policies, sea perils and solved problems.

Introduction

These consolidated notes are prepared for law students appearing in the 2nd Mid exam on Insurance Law. The bilingual layout (English + Telugu) improves comprehension and SEO reach.

Part A — Short Answers (English)

1. Average Clause in a Fire Policy

The Average Clause prevents under-insurance by making the insured bear the proportionate part of the loss when the property is insured for less than its actual value.

Formula: Claim = (Sum Insured ÷ Actual Value) × Loss Suffered

2. Assignment

Assignment transfers the rights, title and interest of a policyholder to an assignee. It must be in writing and notified to the insurer to be binding.

3. Voyage (Marine Insurance)

A voyage policy covers the subject matter for a specified journey. A change of voyage or an unjustified deviation may discharge the insurer from liability.

4. Incontestable Clause

An Incontestable Clause bars the insurer from contesting policy validity after a fixed period (usually 2–3 years), except where fraud is proven.

Part A — Short Answers (Telugu)

1. Average Clause

వాస్తవ విలువకంటే తక్కువ బీమా చేశాక కనిపించే నష్టానికి బీమా యజమాని వాటా భరించాల్సి ఉంటుంది.

2. Assignment

పాలసీ హక్కులను సమాచారంగా, రాతపూర్వకంగా మరో వ్యక్తికి బదిలీ చేయడం — దీనిని బీమా కంపెనీకి తెలియజేయాలి.

3. Voyage

నిర్దిష్ట ప్రయాణం (మేజర్ పోర్ట్ A నుండి పోర్ట్ B) వరకు మాత్రమే బీమా ఫలితంగా ఉంటుంది; మార్పులు ఇన్స్యూరర్ బాధ్యతను రద్దు చేయవచ్చు.

4. Incontestable Clause

సాధారణంగా 2–3 సంవత్సరాల తర్వాత నీతి వ్యతిరేక వివరాలను తప్ప మరేమీ చెల్లుబాటు చేయలేవు.

Part B — Long Answers (English)

1. Types of Fire Policies

• Valued Policy: Pre-agreed value paid on total loss.
• Specific Policy: Covers a specified property for a fixed sum; Average Clause does not apply.
• Floating Policy: Single policy covering goods at multiple locations with fluctuating stock.
• Comprehensive Policy: Package cover against multiple perils.
• Consequential Loss Policy: Covers loss of profits due to business interruption.
• Reinstatement Policy: Pays cost of replacement or repair to restore property.

2. Sea Perils

Sea perils are accidental, unforeseen marine dangers having a marine character. Examples include collision, shipwreck, stranding, heavy weather, and ingress of seawater. Gradual wear and tear or ordinary action of winds and waves are excluded.

Important Case: Wilson, Sons & Co. v. Xantho (1887) — modern definition of perils of the sea.

Part C — Problem Solutions (English)

1. Claim when Insane Father Sets Fire

Short Answer: Yes — the son can recover.

Reason: Willful misconduct exclusion requires a deliberate act. Acts committed due to insanity lack the requisite mens rea. The innocent beneficiary (son) is entitled to claim.

2. Seawater Damage through Hole Made by Rats

Short Answer: Yes — insurers liable.

Reason: Proximate cause was seawater entering the ship — a peril of the sea. Rats were a remote cause. Hamilton Fraser & Co. v. Pandorf & Co. (1887) supports this conclusion.

---

Insurance Law mid - 1

Insurance Law mid - 2

Insurance Law

---

© Pavan Law Chambers — Insurance Law 2nd Mid Notes. For classroom use, please credit Pavan Law Chambers.

Keywords: Insurance Law, Average Clause, Voyage, Sea Perils, Assignment, Incontestable Clause