Commercial Law and Preliminaries of Auditing · Ch 6 — Law of Insurance
Overview
Overview
Law of Insurance — how this chapter is examined
Law of Insurance carries 6 of the 40 marks on Part A (Commercial Law) of the Semester IV
(Class XII) paper — the smallest unit on this semester's paper alongside Company Law's
counterpart in Semester III. Semester IV, exactly like Semester II in Class XI, is a Short Answer Question (SAQ) + Descriptive paper, not an MCQ paper. For THIS specific unit, the real
exam allocates all 6 marks to two 3-mark SAQs — no Descriptive-marks question is set on this
unit.
How this chapter is organised
The Short Answer Questions in this chapter are the content that most directly mirrors your
real Semester IV paper for this unit. This chapter also includes a small set of Descriptive
questions and Case Problem scenarios as supplementary practice, beyond the real 6-mark paper — genuinely useful for building a fuller, exam-ready understanding of concepts like
double insurance apportionment or the suicide clause, even though the real paper for this unit
tests them only through short 3-mark answers.
This chapter is grounded in the Insurance Act, 1938 (as amended, and read together with the
IRDA Act, 1999, which established the Insurance Regulatory and Development Authority of India
as the sector's regulator) for insurance generally, and the Marine Insurance Act, 1963
specifically for the Marine Insurance sub-topic. WBCHSE's Commercial Law and Preliminaries of
Auditing syllabus draws on the same Indian insurance-law principles taught in CBSE/NCERT Business
Studies, so the reasoning here transfers directly to those boards' own insurance units.
The unit covers three sub-topics, in the syllabus's own lettered order: (a) Introduction to
Insurance — object, contract essentials, types, key terms, policyholder duties/rights, double
insurance and reinsurance; (b) Life Insurance; (c) General Insurance — Marine and Fire Insurance.