Question

In marine insurance, premium is paid in :*

A. Regular instalments

B. Lumpsum amount

C. Monthly instalments

D. None of the above

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Answer 1

Explanation:

Payment of Premium= Once the insurer submits the declaration form, the proposer is asked to pay the insurance premium as fixed by the marine insurance company. Here, the premium that needs to be paid should be either in cash or cheque. You can adopt any other mode of payment as decided by the insurer.

Answer 2

In marine insurance, premium is paid in C. Monthly instalments.

Explanation for the answer:

• When a broker is involved in placing the insurance, it is he and not the assured who is solely responsible or answerable to the insurer for the payment of the amount of premium.
• Though, the insurers are responsible mainly to the assured for the payment of claims and for any return of premiums.
• The insurer of an Open policy has an option or choice.
• Depending upon the assured’s requirements, he can either charge premium at regular intervals, generally monthly.
• Hence, the correct answer among all the options is option C. Monthly instalments.

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