1. Which function of warehousing is discussed in the following cases? a. A big farmer stores the surplus wheat and rice in his warehouse so that they can be supplied as and when required. b. A warehouse receives sugar in bags of 100 Kg. The sugar is repacked in packets of 1 Kg and 2 Kg and is supplied to customers according to their requirements.
2. “In all types of insurance, insured must have insurable interest both at the time of insurance and at the time of loss.” Do you agree?
Santosh,
1. (a) Stockpiling: It refers to the storage of goods and raw materials that are not required for immediate sale or manufacturing.
(b) Bulk breaking: Warehouses receive goods or materials in bulk from various production houses and plants and divide them into small quantities for dispatching them to different customers as per their requirements.
2. Insurable interest is one of the important principle of insurance. Insurable interest is an interest in a person or a thing so much that loss of that specific thing or person would cause financial loss or other kind of loss.
The concept of insurable interest came about to support an insurance company for an insurance policy. According to this principle, the insured must gain something with the existence of subject that has been insured and incur loss with the destruction of the subject insured. For instance, you have an insurable interest in your car so you can get your car insured but if you apply for insurance policy for neighbours' car then that won't support the principle of "insurable interest."
Hence, the above statement is correct.
1. (a) Stockpiling: It refers to the storage of goods and raw materials that are not required for immediate sale or manufacturing.
(b) Bulk breaking: Warehouses receive goods or materials in bulk from various production houses and plants and divide them into small quantities for dispatching them to different customers as per their requirements.
2. Insurable interest is one of the important principle of insurance. Insurable interest is an interest in a person or a thing so much that loss of that specific thing or person would cause financial loss or other kind of loss.
The concept of insurable interest came about to support an insurance company for an insurance policy. According to this principle, the insured must gain something with the existence of subject that has been insured and incur loss with the destruction of the subject insured. For instance, you have an insurable interest in your car so you can get your car insured but if you apply for insurance policy for neighbours' car then that won't support the principle of "insurable interest."
Hence, the above statement is correct.