MANAGEMENT

Detailed explanation-1: -(1) Where two or more policies are effected by or on behalf of the assured on the same adventure and interest or any part thereof, and the sums insured exceed the indemnity allowed by this Act, the assured is said to be over-insured by double insurance.

Detailed explanation-2: -One example of subrogation is when an insured driver’s car is totaled through the fault of another driver. The insurance carrier reimburses the covered driver under the terms of the policy and then pursues legal action against the driver at fault.

Detailed explanation-3: -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-4: -The Principle of Utmost Good Faith Both parties involved in an insurance contract-the insured (policy holder) and the insurer (the company)-should act in good faith towards each other.