The principles of insurance you need to know

[Augusta]

Insurance company work with some principles and the insured needs to know about them before having any insurance policy contract. The principles are:

Principle of loss minimization:

This Principle states that the insured needs to be protective of the insured property to avoid being at fault

Principle of idemnity

This Principle states that the insured will only be restored back to his or her original position before a bad occurrence had happened

Principle of utmost good faith


This principle states that both the insured and insurer must be open and truthful to one another

Principle of insurable interest

This Principle states that the subject matter or what is insured.has financial gain for the insured and that it can actually bring financial lose to the insured when either damaged or destroyed.

what do you think of these Principles?

 

[Good luck]

Thanks for sharing this.all the principles are very important and reasonable,A lot of people have problems with their insurance company because they do not really know what it entails or require to have an insurance policy. The principles here are guidelines to follow in engaging in any policy so as not to stop half way while paying the premium.

 

[btaliat]

This is what I called covenant. Though this is truly needed between the insurance company and the insured person in order to facilitate the efficiency of the insurance policy. The principle of indemnity is the most important because the insured person may not even collect money if the event are partially or wholly caused by him or his csrleessnes.

 

[Augusta]

Thanks for sharing this.all the principles are very important and reasonable,A lot of people have problems with their insurance company because they do not really know what it entails or require to have an insurance policy. The principles here are guidelines to follow in engaging in any policy so as not to stop half way while paying the premium.

Definitely this is why it is always good to find out what a thing involve in it's entirety before indulging in it. Because when it comes to money anyone can be deceived so that the other person gains so it is good to find out the Principles before time and be familiar with them

 

[Augusta]

This is what I called covenant. Though this is truly needed between the insurance company and the insured person in order to facilitate the efficiency of the insurance policy. The principle of indemnity is the most important because the insured person may not even collect money if the event are partially or wholly caused by him or his csrleessnes.

Yesh you are right especially about your last line it is pertinent that one get self acquitted with the Principles of how things work before taking a go at it. The truth is that there are circumstances that one might not get paid like you rightly stated if the insured was at fault

 

[btaliat]

An ignorant person on how insurance policy works will only be thinking that insurance company is a charity that pays one the money possess due to some circumstances. Hell no, that's why we need either broker or agents to tell us more about these principles to serve as guidance for us.

 

[Abigael]

Those are very good principles of insurance that you have mentioned. I like the first point the most. It teaches that you should be really careful about taking care of the insured property. You will be at loss of you caused the damage intentionally. Also, being truthful to each other is also great for the insurance relationship.

 

[Augusta]

Those are very good principles of insurance that you have mentioned. I like the first point the most. It teaches that you should be really careful about taking care of the insured property. You will be at loss of you caused the damage intentionally. Also, being truthful to each other is also great for the insurance relationship.

Yeah the insurance company knos that humans can be very careless especially when they know there's is back up. So to avoid incessant happening that will make them being faced with incessant case of compensation they came up with that principle. So it is a good one it will help insureds to be more careful

 

[btaliat]

Because of principle of indemnity, most people have seen insurance company as opportunist that only want to make money from the foolishness of the insured person. What is the essence of instance if the damaged item can only be brought to the original state and not anything better than the previous stage.