Question

the insured should not be allowed to make any profit by selling the damaged property or in case of lost property being recovered which principle of insurance ensure this? explain.

Answer 1

Answer:The compensation payable and the loss suffered are to be measured in terms of money. The principle of indemnity is not applicable to life insurance. ... This is because the insured should not be allowed to make any profit, by selling the damaged property or in the case of lost property being recovered.

Answer 2

The Principle of Subrogation ensures the condition.

• The principle of subrogation applies to the insurer's right to obtain in the insured's position after the claim has been resolved, as far as the insured's right to recover from an alternative source is concerned.  
• Once the insured is liable for the potential loss or harm to the insured property, the right of possession of the insured property is properly transferred to the allowed insurer.  
• The direct transfer is carried out so that the insured individual is unable to generate any profit by the sale of damaged property or in the specific event of lost property being recovered sufficiently.