Explain the principle of insurance highlighted in following cases:
(a) insured should take reasonable steps to minimise the loss.
(b) insured is entitled to recover the loss suffered by him upto the limit of policy amount.
(c) insurance can be taken for a close family member. However taking insurance for an unknown
person is not acceptable.
(d) Harry insured is house for rs. 20 lakhs with insurer A and for rs. 10 lakhs with insurer B. He
suffered a loss of rs. 12 lakhs.
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Explanation:
(a) Principle of mitigation of loss
(b) Principle of Indemnity
(c) Principle of Insurable interest
(d) Principle of Contribution
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