Mumbai University Solved Question Papers
Law of Insurance
Previous Year Question Paper with Solution
LLB 3 years · Sem 6
Apr 2025 - 60/40 Examination
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LLB 3 years Sem 6 Law of Insurance Apr 2025 - 60/40 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 University does not publish an official answer key for this paper. The answers in this volume are model answers, written to show how a full-mark answer is built. They are a study aid, not an authority on what an examiner marked.
The question paper reproduced here is the paper as set by the University of Mumbai at the Apr 2025 - 60/40 examination.
Contents
The questions below are the paper as the University of Mumbai set it at the Apr 2025 - 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 Apr 2025 - 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
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.
1.
Q.1: Answer in two or three sentences, any 6
12 Marks - 2 marks each
(a)What is Re-insurance?[2]
Answer
Meaning. Re-insurance is insurance for insurers. An insurer that has accepted a large risk passes part of that risk, with part of the premium, to another insurer, called the re-insurer. The insurer that passes on the risk is called the ceding insurer or cedant.
Its features.
- It is a separate contract between the two insurers. The original insured is not a party to it.
- The ceding insurer has an insurable interest in its own risk, so it may re-insure it. Unless the policy provides otherwise, the original assured has no right or interest in the re-insurance (section 11 of the Marine Insurance Act, 1963).
- It spreads a large risk, such as a refinery or an aircraft, across many insurers and countries.
Indian law. Section 101A of the Insurance Act, 1938 requires every insurer to re-insure part of each policy with Indian re-insurers. The Authority specifies the minimum percentage of the sum assured, and it may not exceed thirty per cent. The General Insurance Corporation of India is the national re-insurer.
Re-insurance and double insurance. Double insurance is the insured buying two policies on the same risk. Re-insurance is the insurer insuring its own risk.
A case. In Dalby v. India and London Life Assurance Co., (1854) 15 CB 365, a life re-insurance was held payable in full although the ceding company's own liability had ended.
Conclusion. Re-insurance lets an insurer share a risk too large for it to carry alone. It is a contract between insurers and gives the original insured no rights.
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