Principles of Insurance
(i) Principle of indemnity
Insurance aims at restoring the insured to the financial position he/she was in before the loss occurred and not benefit him/her.
(ii) Insurable interest
The insured must prove that the occurrence of the risk will cause him/her financial loss.
(iii) Utmost good faith (uberrima fidei)
The insured must disclose all materials and relevant information that may affect insurance contract it subsequently comes to light.
(iv) Proximate cause.
There must be a fairly close connection between the cause of the loss and the risk insured.
In case of total loss and full compensation the insurer, assumes the rights that insured had on the property destroyed.
In case of property being insured by more than one insurance firm, all the insurers share the burden of compensation in the proportion of coverage of the risk.
Procedure for obtaining an insurance policy
Government initiated methods of consumer protection
Demerits of pipeline transport
Apart from trains and motor vehicles, state four other means of transporting goods and people on land
Other means of transporting goods and people on land apart from
trains and motor vehicles are:
Benefits of a bonded warehouse to the importer include:
Features of co-operative societies include:
Merits of using sales people to promote the sales of a particular product include:
The roles played by the Nairobi securities exchange in the Kenyan
The information given below was extracted from the books of Birika Traders on 31 December 2014: (4 marks)
Required: Prepare Birika Traders Trial Balance as at 31 December 2014.