[ad_1]
Insurance is a contract, a risk transfer mechanism where a company (Manager) promised to improve or add another party (the policyholder) on payment of a reasonable premium to the insurance company to achieve the object of an insurance . If you are well aware of these principles, you will be in a better position in negotiations you insurance needs.
1. insurable interest. This is economic or monetary interest of the owner or holder of the property has the merits insurance. The mere fact that it could be detrimental to him should the loss occurred because financial stake in the property gives him the possibility of securing property. Castellina Vs Preston 1886.
2. Umberima fader. That means very good faith, this principle says that the parties of the insurance contract shall be published accurately and fully all facts material to the risk of being laid. That is to say that the insured must make known to the company all the facts regarding the risks to be insured (looker Vs Union law and Rock 1928). Likewise, the underwriter must highlight and clarify the terms, conditions and exclusions of the insurance policy. And policy will be void of ‘small prints’.
3. Compensation. Stated that following the loss, the insurer should ensure that they put the insured in the exact financial position he enjoyed before the loss (Leppard Vs excesses of 1930).
4. contribution. in a situation where two or more insurance is almost certain risk, if the loss occurred, the insurers will contribute to the settlement of claims in accordance with the rate CD rate.
5. Transfer of ownership. It has often been said that the contribution and transfer of a normal result of the compensation, which means that these two principles operates so that the compensation does not fail. Subrogation operates primarily on motor insurance . When an accident occurred involving two or more vehicles, it must be tortfeasor (s) responsible for the accident. On this basis, the company covers the policyholder was not the fault can recover outlay them from guarantor policyholder who is responsible for frequency.
[ad_2]
Source by Adewale Olofinnika