D contribution this considerations is applicable when

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(d) Contribution: This considerations is applicable when you can see two or more policies of indemnity exist which may probably have common interests. Most marine insurance policies have this clause which says that the insurer is liable to proportionate calculations of the loss.
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Principles of Insurance (cont.) (d ) Utmost good faith: Insurance companies practice utmost good faith for all declarations made by the premium prayers. The duty for total disclosure must be made-known during the inception of a policy and at the renewal of the policy. A policy is considered null and void if any nondisclosure, concealment of fact and fraudulent misrepresentation is found. (e) Proximate clause: This applies to determining the most direct and the most dominant effective cause of the loss. The burden of proof for any insurance related claim, will be the responsibility of the insured.
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Why Is It Necessary to Insure? There is no guarantee that the best packaged cargo in the world can prevent a damage from happening. Important reasons why you must insure all cargoes: Accidents can happen at any time and anywhere Cargoes are subject to damages due to:- (i) Bad weather, and (ii) Rough and careless handling (c) Cargoes are subject to be stolen anywhere (d) Cargoes are subject to transportation hazards like loss of vessel, skidded trains, etc. (e) Carriers, forwarders and all other cargo handlers, only accept limited liability.
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Types of Insurance Coverage (a) Particular average: The loss of cargo or goods which is suffered from an accident during transportation either partially or totally. (b) General average: The loss which arises as a result of intentional sacrifices made or expenses incurred, in order to maintain a common safety of a ship or aircraft. (c) Free of particular average: In contrast to particular or general average, this policy means that no partial loss or damage would be recognized except in the following cases: (i) Total loss resulting form marine perils like earthquakes, flood, etc. (ii) Contribution to general average.
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  • Spring '17
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