Mumbai University Solved Question Papers
Law of Insurance
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
Jun 2019 Examination
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LLB 3 years Sem 6 Law of Insurance Jun 2019 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
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Model answers written and edited by the munotes.in editorial desk.
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The question paper reproduced here is the paper as set by the University of Mumbai at the Jun 2019 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Jun 2019 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the Jun 2019 examination, reproduced as the University of Mumbai set them, in the order it set them. Nothing has been reworded, added or left out. Only the answers are ours. See the original question paper.
Duration 3 hours · Total marks 100 · 25 questions answered
Instructions printed on the paper
- N.B: 1. All questions are compulsory. 2. Figures to the right indicates full marks. 3. Cite relevant Case laws wherever required.
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q. No. 1
Q.1: Answer the following, not more than two sentences
20 Marks - 2 marks each
(a)Explain Principle of Contribution.[2]
Answer
Meaning. Contribution is the right of an insurer that has paid more than its fair share of a loss. It may recover the excess from the other insurers of the same loss. It applies where there is double insurance. That means two or more indemnity policies on the same subject matter, interest and peril.
The statute. Under section 80 of the Marine Insurance Act, 1963, each insurer must contribute rateably as between the insurers. Its share follows the amount for which it is liable. An insurer who pays more than its share may sue the others, with the remedies of a surety.
In fire insurance. Condition 11 of the standard fire policy makes each insurer liable for no more than its rateable proportion of the loss.
Its purpose. It is a corollary of indemnity. The insured is paid once, and no insurer bears more than its fair share.
Example. A godown worth ₹10 lakh is insured with A for ₹6 lakh and with B for ₹4 lakh. A fire causes a loss of ₹5 lakh. A pays ₹3 lakh and B pays ₹2 lakh, in the ratio 6:4.
Indemnity as the root. In Castellain v. Preston, (1883) 11 QBD 380, Brett L.J. held that the insured must never be more than fully indemnified. Contribution keeps two policies from paying him twice.
Conclusion. Contribution shares a doubly insured loss among the insurers in proportion to their liabilities. It does not apply to life policies, which are not indemnities.
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