ICSE Class 10 Commerce 2018 Solved Papers

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Question : 10
Total: 31
Explain 'Contribution' as a principle of insurance.
Solution:  
Contribution : The principle of contribution is another corollary of the doctrine of indemnity. It implies that when property is insured for the same risk with two or more insurers, the different insurers will contribute to the total payment in proportion to the amount assured by each. In case one insurer has paid the full compensation for loss, he is entitled to receive proportionate contribution from other insurers.
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