Question

2. Identify and explain the principles of insurance involved by insurance company
by accepting the claim amount.
15​

Answer 1

Answer:

The concept of insurance is risk distribution among a group of people. Hence cooperation becomes the basic principle of insurance.

To ensure the proper functioning of an insurance contract, the insurer and the insured have to uphold the 7 principles of Insurances mentioned below:

Utmost Good Faith

Proximate Cause

Insurable Interest

Indemnity

Subrogation

Contribution

Loss Minimization