7. a) Explain the principle of indemnity with suitable example.

b)

Mr. Ali has two property and has purchased two policies for his properties. In the following

narration description of his properties and purchased polies are sated:

Value of properties:

Property 1: Tk. 10,000

Property II: Tk. 10,000

Purchased Policies:

Policy A

Sum insured: Tk 10,000

Covered property: Property I and Property II Calculation Method: two conditions of average

Policy B.

Sum insured: Tk 7,500

Covered property: Property I

Calculation Method: No average

Loss Occurred:

Tk. 10,000 on Property I

Required

calculate amount of money each of the policy indemnify for the loss.

()

Describe the ways that insurer generally applies to provide indemnity to insured person.