Express the meaning of the following terms as used in the law of insurance
i) Third party insurance
ii) Average clause
iii) Surrender value
(i) Third party insurance;- Liability insurance purchase by an insured (The first party) from an insurer (the second party) for protection against the claims of another (the 3rd party). The 1st party is responsible for its own damages or losses whether caused by itself or 3rd party.
(ii) Average clause: Is a clause in ocean marine insurance which sets out the coverage provided in the event of partial loss.
(iii) Surrender value: It is the amount the policy holder will get from the life insurance company if he decides to exit the policy before maturity.