Question

What are the different principles of insurance?

Answer 1

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Answer ⬇️⬇️⬇️

1. Nature of contact

Nature of contract is a fundamental principle of insurance contract. An insurance contract comes into existence when one party makes an offer or proposal of a contract and the other party accepts the proposal.



2. Principal of utmost good faith:

Under this insurance contract both the parties should have faith over each other. As a client it is the duty of the insured to disclose all the facts to the insurance company. Any fraud or misrepresentation of facts can result into cancellation of the contract.

3. Principle of Insurable interest:
Under this principle of insurance, the insured must have interest in the subject matter of the insurance. Absence of insurance makes the contract null and void. If there is no insurable interest, an insurance company will not issue a policy


4. Principle of indemnity:

Indemnity means security or compensation against loss or damage. The principle of indemnity is such principle of insurance stating that an insured may not be compensated by the insurance company in an amount exceeding the insured’s economic loss.

Hope it helps !!!!

@Namisha✌️✌️✌️

Answer 2

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$\boxed{Here\:is\:your\:@nswer}$

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$\mathfrak{\blue{Q.}}$What are the different principles of insurance?

$\mathfrak{\blue{Ans.}}$ Different principles of insurance are,

$\mathfrak{\green{ii.)\: Principle \:of\: utmost\: good \:faith\::-}}$ According to this principle insurance is a contract based on faith. The insured and insurance disclose all the material facts to each other and both the parties should not had any facts related to insurance policy from each other.

$\mathfrak{\green{ii.)\: Principle\: of\: insurable \:interest\::-}}$ According to this principle the insured must have an insurable interest in the subject matter of insurance policy. Without interest taking an insurance policy is a gamble and fraudulent activity and law does not permit it.

$\mathfrak{\green{iii.)\: Principle \:of\: indemnity\::-}}$ According to this principle insurance is not a contract of making profit. The purpose of insurance is to bring back the insured in the same financial position as he was before the loss.

$\mathfrak{\green{iv.)\: Principle \:of\: contribution\::-}}$ The principle of contribution is corollary of the principle of indemnity. According to this principle if a person has taken more than one insurance policy for the same subject matter in all the insurers will contribute the same amount of loss and compensating for the actual amount of loss.

$\mathfrak{\green{v.)\: Principle\: of\: subrogation\::-}}$ According to this principle after paying the compensation the insurance steps into the shoes of the insured.

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$\mathbb{\huge{\blue{Hope\:it\:helps!!}}}$