1. (A) Mr. Chowdhury lives in an apartment located in Gulhan, Dhaka.

He is a Lawyer by his

profession. He purchased an insurance policy for his car from XYZ insurance company

limited. Recently, Mr. Chowdhury has got accident and his car damaged seriously. Insurance

company has investigated the incident and found that Mr. Chowdhury got accident twice

earlier but he failed to mention that to the company. Mr. Chowdhury also drove the car

recklessly and thus got accident. Now, Mr. Chowdhury has claimed the amount of loss from

the insurance company. But insurance company has refused to pay the claim.

Requirements:

a) Why did ZYZ Insurance Company refuse to pay the claim? 01

b) What are the duties of a policyholder that should be followed by Mr. Chowdhury? 02

c) What are the general elements of an insurance contract? Describe with example. 03

d) Which of the principles did Mr. Chowdhury violate? Justify your answer from insurance point of

view.

Ans to the question number 01

(A)

a) XYZ insurance company refuse to pay the claims because Mr. Chowdhury got
accident twice earlier but he did not mention to the company and he also drove
the car recklessly and thus got accident. Hiding information from
your insurance company can lead to your claim getting rejected.  That’s why xyz
company refuse to pay the claims .

B) The duties of a policy holder that should be followed by Mr. Chowdhury are –

 Mr Chowdhury should give the all correct information to the insurance company. Hiding
information is not a ethical things .
  A insurance company have a responsibility and liabilible to your products . That does not
mean that he can drive recklessly . He should drive safely and carefully and protect the
car from the accident.
 Always cooperate the insurance company for investigation .
 Meet all documentary requirements at the time of taking out insurance policy;

c) The general elements of an insurance contract are given below :

1. Offer and Acceptance - This refers to an offering being made and then being
accepted by the other party. This is also often called “agreement .
In the insurance context, that means you have made an application to the insurance
company, they have accepted it and you have accepted the policy terms they
offered.
2. Legal Consideration - This refers to a fair exchange of value. A contract where
one party gets everything while another party contributes nothing does not meet
this requirement.
Example :
In the example of an insurance policy, you are paying them premiums while they
are providing you with a promise to pay claims in the future.
3. Competent to make contract : For an agreement to be binding on all parties ,
the parties involved must have to legal competent to enter into a contract .
Example : The person should be legal and should be 18+ old . A minor can not
enter into a contract .
4.Free consent : The consent is free when the contract is not made by coercion,
undue influence, fraud or misrepresentation or mistake. The parties to the contract
should be competent to enter into contracts.
Example : The insurer must have license to sell the insurance contract.
5. Legal object : A valid contract must be a legal . Insurance company is a legal
business . In order to make a valid contract, the object of the agreement should be
lawful.
Example : Alif is a fraud person . He want to insurance his product . But his
product is not a legal . He can not make a contract .

d) Mr. Chowdhury violate the principle of “ utmost good faith “ .

Principle of Utmost Good Faith is one of the basic features of an insurance

policy. It means that both the policyholder and the insurer need to disclose all
material and relevant information to each other before commencement of the
contract. It means that both the Proposer (who wishes to buy the insurance
plan) and the Insurer will be honest and not withhold critical information which
is required to issue the insurance policy.  It is important to the insurer that they
have a full and accurate picture of the risk that is proposed to them.

Mr Chowdhury was hide the information about the car accident and hide the accident .
And he also drove the car recklessly where he should drove his car carefully . And
every insurance there is main is faith . If your policy holder hide any terms its is void
agreement and he can not give any money from the insurance company .

Here is clear that mr Chowdhury break the terms and conditions of the insurance
company . he was hiding the information . that is principle of Utmost good faith . He
break this principles. So he will not get any money from the company .

Ans to the question number 01 (B)

(1)

A bank can save itselt from this type of losses by taking “ third party liability
insurance “

Third-party insurance is essentially a form of liability insurance purchased by

an insured (first-party) from an insurer (second party) for protection against the claims
of another (third party). The first party is responsible for their damages or losses,
regardless of the cause of those damages.

(2) question 01 (B) 02

Pic dibo [ ss ]

Ans to the question number 02

A) math ase .. math kore tarpor pic dibo .

(B) Insurance is not gambling :

Insurance is a contract, represented by a policy, in which an individual or entity

receives financial protection or reimbursement against losses from an insurance
company. 
Gambling is taking part in any game or activity in which you risk money or a
valuable object in order to win money or loss the money ,its depend on your luck .

In favor : Gambling is taking part in any game or activity in which you risk
money or a valuable object in order to win money. If your luck is good , u can bet
little money in gambling and you can get a lots of money . Both are uncertainty
events but both are profitable . In insurance , you will clam your damage product
and gain the losses of money . both are help to gain money .

In against :

However, buying insurance is actually very different from gambling. When we

enter into a gambling engagement, such as buying a lottery ticket or putting money
in a slot machine, we create risk of loss that did not previously exist. In other
words, there was no risk of losing money to gambling until we bought the lottery
ticket or put the money in the slot machine.
Conversely, the risk of financial loss from other causes already exists whether we
purchase insurance or not. For example, my home faces the same risk of being
burned down by a fire whether I buy homeowners insurance or not. If I do not have
homeowners insurance, I am faced with the possibility of having to pay completely
out of my pocket to rebuild my home in the event of a fire.

( C) answer

Pic tule dibo … likhar age question ta bolba ,

Question 02 (C)