MANAGEMENT

Detailed explanation-1: -Principle of Indemnity states that the insured shall be compensated appropriately for the losses caused to the goods by the insurer, only to the extent that the insurer does not make a profit out of the loss that occurred.

Detailed explanation-2: -According to the Principle of Subrogation, after paying the compensation, the insurer steps into the shoes of the insured. In other words, when the insured is compensated for the loss or damage to the property insured by him, the right of ownership of such damaged property passes on to the insurer.

Detailed explanation-3: -Indemnity. The principle of indemnity ensures that an insurance contract protects you from and compensates you for any damage, loss, or injury. The purpose of an insurance contract is to make you “whole” in the event of a loss, not to allow you to make a profit.

Detailed explanation-4: -The Principle of Subrogation After the insured (policyholder) has been compensated for the incurred loss on a piece of property that was insured, the rights of ownership of this property go to the insurer.