MANAGEMENT

Detailed explanation-1: -The Principle of Indemnity The insurance company promises to compensate the policyholder for the amount of the loss up to the amount agreed upon in the contract.

Detailed explanation-2: -Indemnity is one party’s promise to compensate another for potential losses or damages. Indemnification is the act of compensating another party after a loss has occurred. In an indemnity contract, the indemnitee is protected from liability and the indemnitor holds the indemnitee harmless.

Detailed explanation-3: -Principle of Insurable Interest According to this principle, you must have an insurable interest in the life that is insured. That is, you will suffer financially if the insured dies. You cannot buy a life insurance policy for a person on whom you have no insurable interest.

Detailed explanation-4: -The principle of Utmost Good Faith is also known as Uberrimae Fides. Which of the following principles of Insurance assures about the financial interest that the assured possesses in whatever is being insured? Some Extra: The person (the assured) should possess the thing whatever he has opted to get insured.