Coinsurance :

Where the amount of insurance on large industrial complexes is substantial, it is possible for the insured to interest different insurers in the risk for varying proportions of acceptance, so that the total is covered. The practice is for each insurer to issue a policy with a specification or schedule giving a description of the property insured, with the “co-insurance clause” included therein.

Survey of the risk, rating, collection of premium and preparation of the specification is carried out by the “leading office”, that is the office carrying the largest share in the business.

All co-insurances are agreed upon prior to the issue of the original policy.

In the event of a claim all policies would contribute equally. In case, in rare instances where two policies are extant for a same risk, both would contribute in proportion of their interest in the sum insured at the time of claim. Notably, the polices would contribute in a manner to ensure that the insured is indemnified and not benefitted from the loss. In marine cargo claims, subrogating to the rights and remedies enjoyed by the insured against the carrier or third party , illustrates the practical application of the principle of subrogation.

The main postulate in underwriting all general insurance products is presence of mind and application of basic common sense. At every instance, a brief scan of one’s surroundings would showcase an opportunity to provide protection and evaluation of the surrounding circumstances and environment reveal the conditions which affect the property (potential risk) and the possibility of loss (potential risk/peril.)

Underwriting is the application of one’s common sense, experience and then knowledge in the common interest of the insurer and the insured.