Fundamental Principles In Every Insurance Cover
- Utmost Good Faith – The Contract of Insurance requires not only from the Insurer but also from the Insured the observance of Utmost Good Faith or Uberrimae Fidae. Both parties must disclose conditions affecting the risk and other material facts, as such shall be the basis of the agreements of the contracting parties. Failure of either party to declare in utmost good faith may avoid the contract.
- Insurable Interest – It is the relationship of the Insured to the thing that is subject of insurance, where the former would suffer loss, pecuniary or otherwise, in case of loss.
- Indemnity – The obligation of the Insurer to make good any loss or damage which the Insured has incurred, provided the cause of loss or damage and the thing are covered in the contract of insurance, within a given period of coverage.
- Subrogation – It is the substitution of the Insurer to the rights of the Insured after the former has paid or settled, in whole or in part, the supposed obligation of the latter to a third person.
- Premium – It is the consideration being required by the Insurer for undertaking to indemnify the Insured against loss, damage or liability arising from unforeseen, unknown or contingent event.
- Proximate Cause – It is the Responsible Cause of an event or happening. That cause, which, in natural and continuous sequence, unbroken by any efficient intervening cause, produces the injury, and without which the result event or result would not have occurred.
What is Liability Insurance
Liability Insurance is that form of insurance that undertakes to indemnify the insured for any sums (damages) he may be legally obligated to pay as a result of any injury to or death of any person, or loss of or damage to the property of other persons, that the insured may have caused due to his fault or negligence.
Basic Types of Liability Insurance
1. Comprehensive General Liability (CGL)
Protects the Insured against Legal Liability that may arise as a result of BODILY INJURY and/or PROPERTY DAMAGE to THIRD PARTIES in connection with the Insured’s Business.
Types of CGL Cover:
a. Premises Operations Hazards
b. Elevator Hazards Independent
c. Contractors’ Hazards
d. Product Hazards
e. Contractual Hazard
2. Comprehensive Personal Liability(CPL)
Liability in connection with Insured’s:
a. Personal Activities
b. Obligation as head of the Family
c. Obligation as Homeowner in connection with hazards in the residence premises
d. Obligation as Employer of Residence Employees
3. Professional Liability
a. Errors and Omissions
b. Medical Malpractice (Doctors)
c. Professional Indemnity (Architects, Engrs., Lawyers & Accountants
d. Hospital Liability Insurance
4. and Other Liability Insurances, Standard or Specially Designed for your requirement