Sir under reinsurance business and co insurance under which of these two the insured knows that his insurance is done by 2 cos.??

Questions › Category: CA-Final General Insurance › Sir under reinsurance business and co insurance under which of these two the insured knows that his insurance is done by 2 cos.??

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bharat gahlot asked 7 years ago

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Ravi Staff answered 7 years ago

in co-insurance insure (person insured) knows that 2 or more companies are taking responsibility.
in reinsurance , primary responsibility is of first insurance company, and at the back reinsurance company reimburses claim money. In this arrangement, insure (person insured) generally doesn’t know about reinsurance company.