BUISENESS MANAGEMENT
INSURANCE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Global Travel Ltd. gets all the buses insured for AED 20, 000 each under comprehensive insurance policy. One of its bus met with an accident. The insurance company appointed its surveyor who assed that the loss was AED 5000 and the claim was paid. Identify the principle of insurance that is applicable in the case mentioned.
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Principle of indemnity
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Principle of mitigation.
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Principle of proximate cause.
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Principle of subrogation.
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Explanation:
Detailed explanation-1: -The principle of utmost good faith, uberrimae fidei, states that the insurer and the insured must disclose all material facts before the policy inception.
Detailed explanation-2: -The Principle of Insurable Interest The insured must have an insurable interest in the subject matter of the insurance contract.
Detailed explanation-3: -The principle of indemnity ensures that an insurance contract protects you from and compensates you for any damage, loss, or injury.
Detailed explanation-4: -In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.
There is 1 question to complete.