Ans. 7. (b), 2015.<\/strong><\/a><\/p>\n(b)<\/strong> Five principles of an Insurance contract are:<\/p>\n\n- Utmost good faith:<\/strong> An insurance contract is based on utmost good faith on the part of both the parties. One who wants to get an insurance policy it is his duty to disclose all the material facts about the subject to be insured. The amount of premium is fixed on the basis of the information supplied by the proposer.<\/li>\n
- Insurable Interest:<\/strong> Insurable interest is an essential element in every insurance contract. In the absence of insurable interest, a contract of insurance becomes a wagering contract which is null and void and unenforceable at law. Insurable interest means that the insured must be in such a position that he will suffer a primary loss by the happening of the event insured against. A person is said to have an insurable interest in the subject matter insured, if he is benefited by its existence and suffers a loss by its destruction.<\/li>\n
- Indemnity:<\/strong> Indemnity means a promise to compensate in case of loss. The object of every insurance contract is to place the insured as nearly as possible in the same financial position after the loss as he was before the loss. The insured is entitled to recover from the insurer only the amount of loss actually suffered. The maximum amount of compensation will be upto the sum insured on the value of the policy. The insured will not be allowed to make any profit out of the happening of any loss covered by insurance contract.<\/li>\n
- Doctrine of Subrogation:<\/strong> It implies that after indemnifying the insured for his loss, the insurer becomes entitled to all the rights and remedies to the property insured^ The insurer shall step into the shoes of insured. Doctrine of subrogation is applicable to all contracts of indemnity and it is not applicable to life insurance.<\/li>\n
- Mitigation of Loss:<\/strong> According to this principle, it the duty of the insured to take all possible steps to minimise the loss or damage in case of a mishap. The insured should not be careless in the event of any accidental loss just because the property is insured. He should behave like a prudent person and make reasonable effort to save the insured property.<\/li>\n<\/ol>\n
Question 7:<\/strong>
\n(a)<\/strong> Explain any five qualities of a successful salesman. [5]<\/strong>
\n(b)<\/strong> Briefly explain the following:
\n(i)<\/strong> Role of Trade Unions in the welfare of workers.
\n(ii)<\/strong> Outdoor Advertising. [5]<\/strong><\/p>\nAnswer:<\/strong>
\n(a) Five qualities of a successful salesman are:<\/strong><\/p>\n\n- Knowledgeable:<\/strong> A good salesman should possess knowledge about his organization, product, market, customer and competitor. He should have knowledge about his product so that if any query is put to him by customer he can handle it easily and confidently. He should have knowledge about the customer related to his habits, tastes, preferences and time of buying so that the repeated sales can be made.<\/li>\n
- Physically and mentally fit:<\/strong> A good salesperson is one who is physically and mentally fit. Selling often requires extensive travelling and even visits to the prospects at odd hours; thereby putting the strain on salesman. Therefore, the salesman should be physically fit to overcome such strain. He should be mentally fit to understand what prospect says on one hand and on the other to make prospect understand what he says.<\/li>\n
- Cheerful:<\/strong> Any person having cheerful disposition and pleasing manners gets acceptance very easily. Same is the case in selling. A salesman who has a smiling face and is social, will get the acceptance from the prospect easily. To be a successful salesman, he should possess pleasing manners, politeness, sincerity and should be alert and attentive to the needs of customers.<\/li>\n
- Communication:<\/strong> Communication skill is an asset for the salesman. He should be able to speak freely, clearly and in a well-pitched voice. He must be a person who has a natural ability for conversation.<\/li>\n
- Determination:<\/strong> The salesman must have a sense of determination to secure the customer. He should not loose confidence and give up the customer so easily.<\/li>\n<\/ol>\n
(b) <\/strong><\/p>\n\n- Role of trade unions:<\/strong> Trade unions perform the following main functions:\n