General insurance Some insurance principles.

[btaliat]

There are some basic requirements to be followed while insuring under most insurance policies. These requirements are called principles of insurance.


Proximate Cause : the principles states that only the losses which arise from direct and immidiate cause of the events insured against are indemnified. For instance, if I insured my car against fire, I won't be paid any compensation if the car has an accident.

Subrogation : this means that the insurance company can get take over the rights of the insured once he has been compensated. For instance, an insurance company can take over the remnant of the house that has been compensated.

Contributions: a insurer can only be given half of his compensation if he insures a particular event event with different insurance companies.

Utmost Good Faith : this principles states that all relevant documents that may validate the insurance policy must be presented to avoid loss of compensation.

 

[Lens1000]

It's clearly stated in the insurance policies the coverage. Anything outside the insurance premium coverage will not be considered under the policy. It's a very simple thing and that's why you need a consultant to help you through the insurance process. Most importantly, you must know what the insurance you are buying covers.

 

[Nite]

These are the important principles of insurance that one needs to consider before applying for an insurance, so that the insured one can protect himself against any unfair treatment by the insurance company. It's the insured person's responsibility to take all precautions to minimize any loss because any uncertain event can happen anytime.

 

[Mataracy]

Thank you very much for taken your time to explain this clearly. I will like to talk about that proximity clause and subrogation. That means that ; some people that use to think may be they have insured there property let say car and they think that they can cheat of insurance company by intentionally use the car to have accident so that they can buy another car for them. Insurance might not do any thing or give them any money after they found out that it was intentional. Concerning subrogation: There are some people who think that after the I surance company has paid for property let say they insured against fire and after the incidence the Insurance company buy another goods for the person . That person did not have any right on the remaining good that are not burnt its for insurance company.

 

[btaliat]

Thank you very much for taken your time to explain this clearly. I will like to talk about that proximity clause and subrogation. That means that ; some people that use to think may be they have insured there property let say car and they think that they can cheat of insurance company by intentionally use the car to have accident so that they can buy another car for them. Insurance might not do any thing or give them any money after they found out that it was intentional. Concerning subrogation: There are some people who think that after the I surance company has paid for property let say they insured against fire and after the incidence the Insurance company buy another goods for the person . That person did not have any right on the remaining good that are not burnt its for insurance company.

Thanks for your contribution. Insurance is a very complicated and wide investment that needs proper explanation. I have read on this thread where some people are seeing insurance as an investment. They believe they will be given the premium but we should not have that notion. If nothing bad happens to what we insured, there won't be any money from insurance companies

 

[btaliat]

These are the important principles of insurance that one needs to consider before applying for an insurance, so that the insured one can protect himself against any unfair treatment by the insurance company. It's the insured person's responsibility to take all precautions to minimize any loss because any uncertain event can happen anytime.

We are here to learn and we can learn from anybody. I just want to correct the last sentence that you said. It is not the right of the insurer to be protecting what he has insured already. The only thing is that he must not be intentionally cause damage to what he insured because he won't be compensated if it was found out that he caused the damage himself.

 

[Mika]

In order to benefit from the insurance policy, you need to understand all the principles and terminology of insurance policies. If you missed one key concept, you will not benefit from the insurance. The policy I have bought does not cover minor accidents, only the accidents that involve losing my body parts.