12 Questions
What happens if the insured and insurer cannot agree on a single Arbitrator?
Each party will appoint their own Arbitrator, who will then appoint an Umpire
What is the purpose of the principle of indemnity in event of a loss?
To compensate the insured based on the market value of the property
What happens if the insured takes up a policy at a sum insured lower than the market value?
The average clause will apply
Who decides on the cost of arbitration and awards?
The Arbitrator, Arbitrators or Umpire
What is the condition for the insured to commence legal proceedings against the insurer?
The awards by the Arbitrator, Arbitrators or Umpire must be obtained first
What is the consequence of over-insuring a property?
The insured will only be compensated based on the market value
What happens when the insured and the insurer appoint their own Arbitrators?
They will appoint an Umpire to preside over their meetings
Why is the principle of indemnity applied in the event of a loss?
To compensate the insured based on the market value
What is the consequence of under-insuring a property?
The insured will be deemed to be their own insurer for the portion not insured
Who is responsible for the portion not insured or under-insured in the event of a loss?
The insured
What is the condition for the arbitrator to make an award?
The arbitrator has the sole discretion to make an award
What is the purpose of the arbitration process in the event of a disagreement between the insured and the insurer?
To resolve any differences between the insured and the insurer on the amount of loss
Learn about the procedure to resolve disputes between the insured and insurer, including the role of arbitrators and umpires. Understand the steps involved in appointing arbitrators and the process of resolving differences.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
![Maternity Stay Minimum Limits [Insurance Law]](https://images.unsplash.com/photo-1593491034932-844ab981ed7c?crop=entropy&cs=srgb&fm=jpg&ixid=M3w0MjA4MDF8MHwxfHNlYXJjaHw1fHxpbnN1cmFuY2UlMjBsYXclMjBtYXRlcm5pdHklMjBzdGF5JTIwaG9zcGl0YWxpemF0aW9uJTIwaGVhbHRoY2FyZXxlbnwxfDB8fHwxNzA1MTA3MTQ5fDA&ixlib=rb-4.0.3&q=85&w=800)
