Podcast
Questions and Answers
What happens if the insured and insurer cannot agree on a single Arbitrator?
What happens if the insured and insurer cannot agree on a single Arbitrator?
- The arbitration process will be terminated
- Each party will appoint their own Arbitrator, who will then appoint an Umpire (correct)
- The insured will forfeit their claim
- The dispute will be resolved by a court of law
What is the purpose of the principle of indemnity in event of a loss?
What is the purpose of the principle of indemnity in event of a loss?
- To compensate the insured based on the sum insured
- To compensate the insured based on the market value of the property (correct)
- To penalize the insured for under-insuring their property
- To ensure the insured gains from over-insuring their property
What happens if the insured takes up a policy at a sum insured lower than the market value?
What happens if the insured takes up a policy at a sum insured lower than the market value?
- The average clause will apply (correct)
- The insured will be compensated based on the market value
- The insured will be compensated based on the sum insured
- The insured will not be compensated at all
Who decides on the cost of arbitration and awards?
Who decides on the cost of arbitration and awards?
What is the condition for the insured to commence legal proceedings against the insurer?
What is the condition for the insured to commence legal proceedings against the insurer?
What is the consequence of over-insuring a property?
What is the consequence of over-insuring a property?
What happens when the insured and the insurer appoint their own Arbitrators?
What happens when the insured and the insurer appoint their own Arbitrators?
Why is the principle of indemnity applied in the event of a loss?
Why is the principle of indemnity applied in the event of a loss?
What is the consequence of under-insuring a property?
What is the consequence of under-insuring a property?
Who is responsible for the portion not insured or under-insured in the event of a loss?
Who is responsible for the portion not insured or under-insured in the event of a loss?
What is the condition for the arbitrator to make an award?
What is the condition for the arbitrator to make an award?
What is the purpose of the arbitration process in the event of a disagreement between the insured and the insurer?
What is the purpose of the arbitration process in the event of a disagreement between the insured and the insurer?
