Insurance Explained Definition of insurance Between Life And General Insurance.

 


        What is the meaning of insurance and arrangement by which company all the street undertakes to provide a guarantee of compensation for special weight loss damage illness or death in return for the payment of a specified premium see which are the different types of insurance there are two types of insurance hostess life insurance and the other is General Insurance or non-Life Insurance now we'll see principles of insurance first principle is the principle of utmost good faith according to this principle the insurance contract must be signed by both parties that is insured and insured in an absolute good field or believe or trust they should not hide anything from each other then the second principle is the principle of insurable interest principle of insurable interest Steel at the person getting insurance must have insurable interest in the object of insurance that wins you cannot get an insurance policy for the neighbours car or for the neighbour's kid you shall have the insurable interest in the in the property or the person that you are invest taking the insurance plan III insurance principle is principle of indemnity according to the principle of indemnity and insurance contract is signed only for getting protection against and predicted financial losses arising due to future and 13 days that means that the role of the insurance is to provide the good to the loss happened.  the next principal principle.


number 4 is principal of the contribution it applies to all contract of indemnity if the insured has taken out more than one policy on the same subject matter according to this principle the insured can claim the compensation only to the extent of actual loss either from old insurance or from anyone insurance if one insurance peaceful compensation than that insurance can claim protection proportionate claim from other insurance so if your car has hundred thousand rupees of the principle of indemnity then you can take a maximum of two that amount the next principle is the principle of subrogation according to the principle of subrogation when the insured is compensated for the losses due to damage to the to his insured property then the ownership rights of such property ships to the insurance principal.


number 6 is the principle of loss minimization according to the principle of loss minimization insured must always trying his best to minimise the loss of his son short property in case of certain events like a fire break out or blast at Sector usual called the insured.


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