Mumbai University Solved Question Papers
Law of Insurance
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
May 2023 - 60/40 Examination
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LLB 3 years Sem 6 Law of Insurance May 2023 - 60/40 Question Paper with Solutions
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First published on munotes.in on 24 October 2026.
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The question paper reproduced here is the paper as set by the University of Mumbai at the May 2023 - 60/40 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the May 2023 - 60/40 examination, in the order it was set.
MarksPage
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the May 2023 - 60/40 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 2 hours · Total marks 60 · 22 questions answered
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Q.1
Q.1: Answer any six of the following questions
12 Marks - 2 marks each
(a)What is a valued policy?[2]
Answer
Meaning. A valued policy is a marine policy "which specifies the agreed value of the subject-matter insured" (section 29(2) of the Marine Insurance Act, 1963). The insurer and the assured fix the value when they make the contract, instead of proving it after the loss.
Its effect.
- The agreed value is conclusive. In the absence of fraud, the value fixed by the policy is conclusive of the insurable value between the insurer and the assured. This holds whether the loss is total or partial (section 29(3)).
- No dispute about value after a loss. If a ship valued at ₹10 crore is lost, the assured recovers ₹10 crore, even if her market value had fallen.
- A partial loss is measured as a proportion of the agreed value.
- One exception. Unless the policy says otherwise, the agreed value is not conclusive in deciding whether there is a constructive total loss (section 29(4)).
The opposite. An unvalued policy does not state a value. The insurable value is worked out after the loss under the Act's rules, subject to the sum insured (section 30).
Why it is used. Hull values and cargo values are hard to prove after a ship has sunk. Agreeing the value in advance avoids that dispute and speeds up settlement.
A limit. A valued policy is still a contract of indemnity. A grossly excessive value can be challenged as fraud.
Conclusion. A valued policy fixes the insured value in advance, and that value binds both parties unless there is fraud.
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