At the end of the year, Kael retired. He handed Mira the office key. “You’ve learned the ,” he said. “Now remember the ultimate Objectives of the IC-01 principles.”
“Exactly. The principle of ,” Kael said. “Insurance should put you back in the exact financial position you were in before the loss – no better, no worse.” He paid Mr. Elian the actual value of the lost silk (minus the stained bolts they excluded). The Objective : to prevent the insured from profiting from a tragedy.
“So the responsible party pays, not us?” Mira asked. Ic 01 Principles Of Insurance Objectives Contents
Kael shook his head. “Does Lady Sephra own the silk? Does she owe money on the ship?”
“Good,” Kael said. Then he asked Mr. Elian, “Is the silk already damp? Have the rats chewed it?” At the end of the year, Kael retired
A week later, a rival merchant, Lady Sephra, tried to insure The Golden Breeze as well. Mira was confused. “Why not?” she asked. “More premiums for us?”
Finally, a strange case came in. A warehouse caught fire, but inside, a man’s insured rowboat was found smashed, not burned. The man claimed the fire was the cause. “Now remember the ultimate Objectives of the IC-01
“Exactly. And if another insurer had covered part of the ship, we’d use – splitting the loss fairly between us.” The Objectives : to hold the guilty party accountable and prevent the insured from collecting multiple payments.
