Principles of Insurance

Many insureds do not understand a common fundamental legal principle known as the "Principle of Indemnity Principles of Insurance. These are five principles of insurance that are important to understand to ensure that your insurance policies are covered on the correct basis.


Utmost Good Faith 
• Insured must disclosed all relevant fact to the insurer
Indemnity
• Underwriter agree to indemnity the insured against losses to the extent of amount insured

Insurable interest 
• The insurable interest must exist both at the time of effecting the insurance as well as at the time of the loss

Subrogation
• The insurer after paying compensation to insured , become entitled to claim  all the right of the insured against Third  party 

Causa Proxima 

• Losses resulting from fire , margin or some other related cause, being the proximate cause of losses are  covered