Insurance Law
(2021-24 Question paper)
UNIT 1
(10 Mark)
Q. No. 1. a) Explain the basic principles of insurance contracts.
Q. No. 1. a) Explain the classification of Contract of Insurance. (10 or 6 Marks) (UNIT 1
and UNIT 2)
Q. No. 1. a) "Contract of Insurance is a species of general contract." Explain.
Q. No. 1. a) Define contract of insurance. Discuss the nature and scope of contract of
insurance.
Q. No. 1. a) State the composition, powers and functions of l.R.D.A. (Insurance
Regulatory and Development Authority) in India. ** (10 or 6 Marks)
Q. No. 1. a) Analyse the importance of ‘Insurance Regulatory and Development
Authority’.
Q. No. 1. a) Explain the salient features of Insurance Regulatory and Development
Authority Act, 1999.
Q. No. 1. a) Explain briefly the provisions of Insurance Act, 1938. **
Q. No. 1. a) Explain the appointment and the powers of Controller of Insurance under
the Insurance Act, 1938.
Q. No. 1. a) Discuss the history and development of life insurance in India. **
Q. No. 1. a) Explain the historical development of Insurance in India. (10 or 6 Marks)
(6 Mark)
Q. No. 1. a) Write a short note on Re-insurance. ***
Q. No. 1. a) Reinstatement and Re-insurance.
Q. No. 1. a) History and development of insurance in India. (10 or 6 Marks)
Q. No. 1. a) Period of mushroom growth of Life Insurance in India.
Q. No. 1. a) Write a short note on Life Insurace.
Q. No. 1. a) Write a short note on registration of insurance companies.
Q. No. 1. a) Write a short note on composition of insurance regulatory and development
authority. (10 or 6 Marks)
Q. No. 1. a) Establishment of Insurance Advisory Committee in Insurance Regulatory
and Development Authority.
Q. No. 1. a) Insurance Advisory committee.
Q. No. 1. a) Classification of contract of Insurance. (10 or 6 Marks) (UNIT 1 and UNIT 2)
Q. No. 1. a) Contract of Insurance.
Q. No. 1. a) Insurance market.
UNIT 2
(10 Mark)
Q. No. 1. a) "Contract of insurance is a contract of utmost good-faith". Discuss.
Q. No. 1. a) Explain the ‘principle of utmost good faith’ and ‘non-disclosure’ in insurance
contract. **
Q. No. 1. a) "Utmost Goodfaith is an essential element in all insurance contract"
Comment.
Q. No. 1. a) What is premium ? How premium is charged ? When right to return of
premium can be claimed ?
Q. No. 1. a) "The validity of any insurance contract depends on the existence of
insurable interest". Discuss.
Q. No. 1. a) Define risk. Explain rating of risks in life, fire and marine insurance.
Q. No. 1. a) The risk in life insurance. (10 or 6 Marks)
Q. No. 1. a) Explain the principle of "Causa-Proxima". ** (10 or 6 Marks)
Q. No. 1. a) Discuss the doctrines of "Subrogation" and "Contribution". (10 or 6 Marks)
Q. No. 1. a) Discuss the principle of “Contribution” and “Subrogation”.
Q. No. 1. a) Explain the difference between ‘indemnity and guarantee’.
Q. No. 1. a) What is assignment of an insurance Policy ? State the rules relating to
assignment of policies in contract of Insurance. (10 or 6 Marks)
Q. No. 1. a) Define lnsurable interest. Explain the Insurable interest in 'Life insurance’.
(6 Mark)
Q. No. 1. a) Write short note on assignment of insurance policies. (10 or 6 Marks)
Q. No. 1. a) Write a short note on 'Days of Grace' in insurance.
Q. No. 1. a) Write a short note on classification of contracts of insurance. (UNIT 1 and
UNIT 2)
Q. No. 1. a) Write a short note on 'Principle of Indemnity'.
Q. No. 1. a) Causa Proxima. (10 or 6 Marks)
Q. No. 1. a) Doctrine of subrogation. ** (10 or 6 Marks)
Q. No. 1. a) The risk in life insurance. (10 or 6 Marks)
Problems
Q. No. 1. a) A lady renewed a policy of insurance on jewellery which belonged party to
husband had been he convicted of two crimes involving dishonesty in the year before.
She did not disclose these convictions of her husband when seeking renewal.
lnsurance company wants to avoid liability. Can it do so ? Decide.
Q. No. 1. a) Gowrov an insurance policy-holder assigned his policy to Goutham by
endorsing upon the policy. But that assignment of policy from Gowrov to Goutham was
not informed to the Insurance Company. Whether, notice to the insurer is necessary
for the validity of the assignment ?
Q. No. 1. a) Edison had a life insurance policy which had lapsed due to non-payment of
premium. He applied for renewal and there was a question in the renewal policy that
whether he had suffered any ailment or had undone any surgery from the date of
lapse to the date of renewal. He answered ‘No’ Renewal was granted. Later the
Insurance Co. came to know that he-had a mild cardiac arrest. Insurance Co. wants to
avoid liability. Can it do so ? Decide.
Q. No. 1. a) Kiran is an unsecured creditor. He has extended a loan of Rs. one lakh to
Karuna. As there is no guarantee for repayment. Kiran has decided to purchase a
policy on the life of Karuna for Rs. three lakhs. Does he possess insurable interest ?
Q. No. 1. a) Mr. Jeevan received the insurance amount in full and final settlement of his
claim. But the company made a delay in payment of the amount. Whether, [Link] is
having right to make a complaint for delay in payment. Advice him.
Q. No. 1. a) City Insurance company has issued a Life Policy to Mr. Flonak. Later, the
company increased the premium of the policy and asked Mr. Ronak to pay the
premium. Can the company does so ? Decide.
UNIT 3
(10 Mark)
Q. No. 1. a) Discuss the circumstances affecting the risk in life insurance.
Q. No. 1. a) Define life insurance. Discuss different kinds of life insurance policies. **
Q. No. 1. a) Explain persons ‘entitled to payment’, ‘settlement of claim’ and ‘payment of
money’ in life insurance.
Q. No. 1. a) Who can apply for compensation under Motor Vehicles Act, 1988 ? State the
procedure. **
Q. No. 1. a) Discuss the compulsory insurance of motor vehicle under Motor Vehicle Act,
1988.
Q. No. 1. a) What are the defences available to the insurer under compulsory lnsurance
of Motor Vehicles Act ?
Q. No. 1. a) 'Injury caused or arising out of the use of the vehicle'. Discuss.
Q. No. 1. a) 'Discuss the composition, powers and functions of claims tribunals under
Motor Vehicles Act.
Q. No. 1. a) Write a short note on claims tribunal. (6 Marks)
Q. No. 1. a) Discuss the composition, powers and functions of Life Insurance
Corporation of lndia.
Q. No. 1. a) 'The role of a nominee is only as a (receiver and custodian)' - Comment.
Q. No. 1. a) Explain the salient features of General lnsurance Business (Nationalisation)
Act, 1972.
Q. No. 1. a) Explain the features of General lnsurance Business (Nationalisation)
Act, 1972.
(6 Mark)
Q. No. 1. a) Write a short note on ‘causa proxima’. (UNIT 2 and UNIT 3)
Q. No. 1. a) Medical Insurance.
Q. No. 1. a) Health and Medical Insurance.
Q. No. 1. a) ‘Hit and run' in motor accident.
Q. No. 1. a) Write a short note on claims tribunal. **(10 or 6 Marks)
Q. No. 1. a) Legal aspect of Motor Insurance, under Motor Vehicle Insurance
Amendment Act, 2019.
Problems
Q. No. 1. a) 'A' obtained mediclaim pollcy for him. Within a month of obtaining the
policy, he was admitted to hospital. Company issued certificate to 'A' that he is
entitled to receive the benefits, but subsequently repudiates his claim on the ground
that illness occurred within a month from commencement of the policy. Whether
company is estopped from raising objection. **
Q. No. 1. a) Rishi takes out a policy on the life of his wife and subsequently divorces her.
Does policy continue to be valid ? **
Q. No. 1. a) A policy restricted cover for the driving of the insured car belonging to a
company to a director of the company and his wife only. When it was being driven by a
mechanic in the company, it suffered damage. Whether insurer is liable for such
damage ?
Q. No. 1. a) Mr. 'Sharma' a member of Joint Hindu Family takes an Insurance policy on
his life and makes a nominatron for the benefits of his wife and children. The premium
of the policy was being paid by the Hindu Undivided Fund (HUF). Later Mr. Sharma dies.
who, succeeds to claim the policy amount ? Advice him.
Q. No. 1. a) Mr. Tharun has taken a medical policy with National Assurance company. He
made a litigation with the company for the claim. Subsequently he applied for
renewal of his policy, but the company refuse to renew the policy on the ground that
he made a litigation against the company. Can company refuse to renew the policy ?
Decide.
UNIT 4
(10 Mark)
Q. No. 1. a) What are the contents of a fire insurance policy ? State its scope.
Q. No. 1. a) Explain Fire Insurance and nature and scope of Fire Insurance. **
Q. No. 1. a) Explain the meaning of the terms 'Fire' and 'Loss by Fire'.
Q. No. 1. a) Trace out the History of Crop insurance in India. **
Q. No. 1. a) Explain the rights and duties of insured in fire insurance.
Q. No. 1. a) Explain the rights and duties of parties in Fire Insurance.
Q. No. 1. a) Explain the salient features of Public Liability Insurance Act, 1991. **
Q. No. 1. a) Analyse the importance of reasons and purpose of introduction of
‘Agricultural Insurance’ in India.
Q. No. 1. a) Analyse the importance of cattle insurance in India. (10 or 6 Marks)
Q. No. 1. a) What is crop insurance ? Discuss the problems associated with crop
insurance in India. (10 or 6 Marks)
Q. No. 1. a) Discuss the general conditions in a standard fire policy.
(6Mark)
Write a short note on :
Q. No. 1. a) Micro Insurance. **
Q. No. 1. a) Consumer Courts.
Q. No. 1. a) Insurance Ombudsman. ***
Q. No. 1. a) Cattle Insurance in India. (10 or 6 Marks)
Q. No. 1. a) Policy Undertaking.
Q. No. 1. a) Doctrine of Reinstatement in Fire Insurance Contract.
Q. No. 1. a) Problems associated with Crop Insurance. ** (10 or 6 Marks)
Problems
Q. No. 1. a) During the course of fire accident, a mob looted the insured goods. ls
insurer liable ?
Q. No. 1. a) A retail shop in which newspaper, tobacco and confectionery were usually
sold was insured against fireand explosion by a compound retail shop owner cover the
policy. Deepavali fire works were kept in a box. Fire started in the box and was
explosion damaging the shop. Whether insurer is liable for such damage ? Decide.
Q. No. 1. a) Guru took fire insurance policy against his shop for a one year from 05-03-
2005 on 05-03-2006 at 7 [Link] shop got destroyed by fire completely. Can Guru
claim policy money from insurance company ? Advice.
UNIT 5
(10 Mark)
Q. No. 1. a) What are the excluded losses under marine insurance ?
Q. No. 1. a) Evaluate the kinds of losses in marine Insurance.
Q. No. 1. a) Discuss the kinds of policies under marine insurance. **
Q. No. 1. a) What is marine adventure ? How marine policy can be assigned ? **
Q. No. 1. a) What is 'Perils of the Sea' ? What are the Perils insured in a marine policy ?
Q. No. 1. a) What is warranty ? What are the different kinds of warranties in marine
insurance contract.
Q. No. 1. a) Discuss the warranties in Marine Insurance.
Q. No. 1. a) Explain conditions and express warranties in Marine Insurance.
Q. No. 1. a) Explain the nature and scope of Marine Insurance.
Q. No. 1. a) "A Marine insurance contract is no contract without insurable interest."
Discuss.
Q. No. 1. a) What is "Deviation"? Under what circumstances it is excused ? ** (10 or 6
Marks)
Q. No. 1. a) What is Deviation ? When the 'deviation' is allowed ?
(6 Mark)
Write short note on :
Q. No. 1. a) Voyage and Deviation. ** (10 or 6 Marks)
Q. No. 1. a) Voyage Deviation.
Q. No. 1. a) History of Marine Insurance.
Q. No. 1. a) Kinds of Loss.
Q. No. 1. a) Bill of Lading.
Q. No. 1. a) Additional Perils in Marine Insurance.
Problems
Q. No. 1. a) Crew members of the ship obtained certain goods and shipped it without
certificate from the authority under law. The goods were lost due to perils of the sea.
State the liability of insurer.
Q. No. 1. a) Flemming owned two ships insured under Marine Insurance. There was
collision between two shipsbelong to Flemming, for the fault of one of the ship. As a
result both ships are damaged. Weather, Flemming can recover indemnity from
insurance company. Decide.
Q. No. 1. a) Royal Sundaram lnsurance Company issued a "cover note" to Akshay in a
marine insurance. Whether contract is enforceable under a "Cover note" ?
Q. No. 1. a) The crew of the ship forced the master to take back the ship to home port
due to the fear of attack by sea pirates. Can the master be excused for deviation ?
Q. No. 1. a) A Cargo of hides and tobacco was insured. Sea water was also shipped.
During a storm and this rendered the hides to become putrid and the fumes from
them to impart a nauseous flavour to the tobacco. ls it a loss due to Perils of the Seas ?
Decide.
Q. No. 1. a) ‘A' insurer took reinsurance policy on a ship. The insurer claimed reinsurance
amount as total losswas caused by tsunami. The reinsurer refused to pay the said
amount. ls it justifiable ?
Q. No. 1. a) A ship is arrested in England for smuggling activities. ls the insurer liable for
the resulting loss ?
