Some,basic,principles,insuranc finance, share, loan Some basic principles of insurance and subrogation is a most


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Insurance is a contract, it is also known as risk transfer mechanism. In this contract a insurance company promised to pay compensation another party who is the purchaser of the insurance policy upon the payments of reasonable premium to the insurance company to cover the subject of insurance. If you are aware about all the basic principles of the insurance and if you are well conversant with these fundamental principles then you will be in better position in negotiating you insurance requirements.Some of the basic or fundamental principles of insurance are as follows.•    Insurable interest •    Umberima fadei•    Indemnity •    Contribution•    SubrogationInsurable interestThis is a financial interest that the owner of the property such as land or car has in the subject matter of insurance. The simple reality that it might be detrimental to him should a loss happened because of its financial stake in that property provides him the ability to insure the property. If you have property you must purchase property subrogation or insurance policy. Umberima fadei According to this principle of insurance both of the parties in the insurance contract must disclose correctly and completely all the realities and facts materials to the risk being proposed. IndemnityThis principle of insurance is stated that following a loss. The insurance company should make sure that they placed the insured in the exact financial position he enjoyed before the loss occur. ContributionIn a condition where more than one insurance company are covering a specific risk, if a loss happens then the insurance companies should contribute towards the settlement with the claim.SubrogationIt has frequently been said that the principle contribution and subrogation are result of indemnity, which means that when these two principles subrogation and contribution function so that indemnity does not exist. Generally subrogation functions mainly on auto insurance. When an accident happened involving two or more cars, there must be tortfeasor who car driver is the responsible for this collision. In that case the insurance company paid all the damages to its customer who was not at fault and then recovers their payments from the insurance company of the policy holder who is responsible for this accident. So you must have property subrogation or insurance policy.

Some,basic,principles,insuranc

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