Business Studies 3 Marks Question

Subrogation: It refers to the right of the insurer to stand in the place of the insured, after settlement of a claim, as far as the right of insured in respect of recovery from an alternative source is involved.

Principle of Mitigation: This principle states that it is the duty of the insured to take reasonable steps to minimise the loss or damage to the insured property. If reasonable care is not taken like any prudent person then the claim from the insurance company may be lost.

Lines: "the entire benefit of the advancement in the payments landscape to the customer's desktop by pioneering the introduction of the payments on the web."

b) Principle of Utmost good faith is ignored while planning to arrange money from false claim. Insurance contracts also require that both parties act with the utmost good faith. This means that both parties must accurately and fully disclose all material information. This not only ensures fairness, but also helps insurance companies accurately price premiums for insurance applicants. Insurance policies can be declared null and void if an applicant made a misrepresentation of material fact that was relied on by the insurance company.

c) Three elements of fire insurance are :

(i) The insured must have insurable interest in the subject matter of the insurance. Without insurable interest the contract of insurance is void
(ii) The insured should be truthful and honest (Utmost Good Faith) in giving information to the insurance company regarding the subject matter of the insurance
(iii) The contract of fire insurance is a contract of strict indemnity. The insured can, in the event of loss, recover the actual amount of loss from the insurer. This is subject to the maximum amount for which the subject matter is insured

A=20Lakh*3Lakh / 30Lakh
A=2 Lakh
B=10Lakh*3Lakh / 30Lakh
B=1Lakh

2. Principle of Contribution is followed. It applies to all contracts of indemnity, if the insured has taken out more than one policy on the same subject matter.

The right of contribution arises when :

(a) There are different policies which related to the same subject matters;
(b) The policies cover the same period which caused the loss;
(c) All the policies are in force at the time of loss; and
(d) One of the insurer has paid to the insured more than his share of loss.

1. Acceptance of Deposits: Bank accepts deposits from their customers. They are considered as the borrowers of money. As borrower, they pay interest on the amount deposited. These deposits are generally taken through current account, savings account and fixed deposits.
2. Lending of Funds: Second major activity of commercial bank is to provide loans and got advances out of the money received through deposits. These advances can be made in the JOBTIBO form of overdrafts, cash credits, discounting Te lo trade bills, etc.

1. The service sector accounts for 60-65 percent of the GDP in most of the member countries of Organisation for Economic Cooperation and Development (OECD) countries.
2. Service sector accounts for 63 percent of the world GDP.
3. In India, the contribution of service sector to the GDP was more than 50 percent.) The reason for such a high contribution towards GDP by the service sector is that it requires less investment and creates huge employment opportunities.

1. These apps are good if you send money to a wallet to another. But if you want to send money to a bank account these apps are not suitable.
2. Also, you have to be extra careful with these apps. These apps do not ask for any PIN or password when you perform a transaction using your wallet money.
3. If you do not lock your phone, anyone can use the money in your wallet. You must lock your phone if you want to use E-Wallet apps.

1. Life Insurance Policy: Insurable interest must gan be present at the time of effecting the policy but need not be necessary at the time when the claim falls due.
2. Fire Insurance Policy: Insurable interest on the subject matter must be present both at the time of effecting policy as well as when the claim falls due.
3. Marine Insurance Policy: Insurable interest must be present at the time when claim falls due or at the time of loss only.

1. These companies perform a very important function of delivering documents, gifts, etc from one place to other.
2. These companies facilitate mail services with hundred percent of efficiency.
3. These allow speedy transmission of articles, documents, gifts, goods, etc to people in specified cities.

1. Electronic Fund Transfer (EFT): Under this system, a bank transfers wages and salaries directly from the company's account to the account of employees of the company.
2. Automated Teller Machine (ATM): It refers to an electronic terminal that allows people with plastic card to perform simple banking transactions like withdrawal of cash 24x7 without any help of human teller.
3. Debit Card: It refers to a plastic card that allows the bank to take money from the customer's account and transfer it to a seller's account.
4. Credit Card: It refers to a plastic card that allows the customer to buy now and pay back the loaned amount to bank at a future date.
5. Online Banking: Under this system, when the customer gives instruction on his computer, the bank computer transfers money from customer's account to biller's account.

1. Video Conferencing: It is the conduct of video conference by a set of telecommunication technologies, which allow two or more location to communicate by a simultaneous two-way video and audio transmission.
2. Voice Mail: It was introduced in the late 1970s. These are essentially digital recordings of outgoing and incoming voice messages that are managed by either an on-site or off-site system.

1. They benefit to a larger section of society.
2. They are sometimes provided without a payment in lieu.
3. They have long lasting effects on our society and economy.

1. It provides protection to the dependents of the assured in case of untimely death.
2. Through a life insurance, a person can make provision for his old age.
3. It encourages people to save money compulsorily.
4. It mobilises the public savings and channelizes them in productive investments for the economic development of the country.
5. These policies can be used as a collateral security to raise loans.

1. They help in widening the market. This facilitates expansion of national and international trade.
2. They facilitate the mobility of men, materials and money and various other resources from one place to another.
3. They help in stabilising the prices of various products in different regions.
4. They help in the growth of several industries.
5. They also function for the benefit of the society because they provide employment and income generation to the people.

1. Cargo Insurance: Cargo insurance caters specifically to the cargo of the ship and also pertains to the belongings of a ship's voyagers.
2. Hull Insurance: Hull insurance mainly caters to the torso and hull of the vessel along with all the articles and pieces of furniture in the ship. This type of marine insurance is mainly taken out by the owner of the ship in order to avoid any loss to the ship in case of any mishaps occurring.
3. Liability Insurance: Liability insurance is that type of marine insurance, where compensation is sought to be provided to any liability, occurring on account of a ship crashing or colliding and on account of any other induced attacks.
4. Freight Insurance: Freight insurance offers and provides protection to merchant vessels' corporations which stand a chance of losing money in the form of freight in case the cargo is lost due to the ship meeting with an accident. This type of marine insurance solves the problem of companies losing money because of a few unprecedented events and accidents occurring.