Question

State the concept of insurance. What are the basic and general principles of insurance?

Answer 1

Insurance is defined as a contract, which is called a policy, in which an individual or organisation receives financial protection and reimbursement of damages from the insurer or the insurance company. At a very basic level, it is some form of protection from any possible financial losses.



According to this principle, theinsurance contract must be signed by both parties (i.e insurer and insured) in an absolute good faith or belief or trust. ... The principle of Uberrimae fidei applies to all types of insurancecontracts.Mar 23, 2011