The basic principle of insurance

The basic principle of insurance

Insurance is a contract company (insurer) for the insurance company to pay the premium or pay reasonable compensation for damages to the other party (the lessee) the material provided mechanisms for risk transfer. If you are very familiar with these principles, you will be in a better position in negotiations with your insurance needs.

1. Insurable interest. It is a financial or monetary owner or person in possession of property rights in the insured object. The fact that the loss should occur, because of his financial interest in the assets, which can not in his favor to his ability, to ensure the property. Castellin vs Preston in 1886.

2. Umberima fadei. This means that the principle of utmost good faith, the principle states that the parties to the insurance contract must be accurate and complete in all material facts risks. In other words, the insured must be the risk of the insured to the insurer (the viewer Law Union and Rock, 1928), all the facts. Similarly, subscribers should be noted that the policy and interpretation of the terms, conditions and exceptions. And policies must be empty small pictures.

3. Compensation. He lost, insurance companies must ensure that they have placed before the exact financial situation of the insured, the loss of his favorite (Leppard and franchises).

4. Contribution. A particular risk in the case of two or more insurers that cover the case of a loss, the insurance company should help to resolve the claims, according to the percentage.

5. Subrogation. It is often said contribution and indemnity by subrogation, which means that the work of two principles of compensation guaranteed not to miss is the inevitable result.

Mainly engaged in the right car insurance subrogation. During the accident, involving two or more vehicles must have tort (S) which is responsible for the accident. On this basis, the insurance policyholders fault coverage can recover their costs by the underwriters of policyholders who is responsible for the effect.