MANAGEMENT

Detailed explanation-1: -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.

Detailed explanation-2: -Insurance works on the principle of Trust, Sharing and Randomness.

Detailed explanation-3: -Subrogation means substituting one creditor for another. In insurance contracts, except for personal accidents, health, and life, subrogation applies to recover the loss from the errant party.

Detailed explanation-4: -Principle of Insurable interest Insurable interest means that the subject matter for which the individual enters the insurance contract must provide some financial gain to the insured and also lead to a financial loss if there is any damage, destruction or loss.

Detailed explanation-5: -Promise to indemnify is the ‘consideration’ from the insurer in an insurance contract.