arzazore Principles of Insurance -7 Basic General Insurance Principles KALYAN CITY LIFE eer een res Principles of Insurance - 7 Basic General Insurance Principles Understanding Principles of Insurance ‘The main objective of avery insurance canal so ge Banca socutly and Protscton othe insure ram any utr uncertainties Insured must never ever tryto misuse tis sate Feancial cover ‘Seoking prot opportunites by reporing as occurence of contact and ves tegal pani, = volts the toms Principles of Insurance ‘SUBSCRIBE RSS FEED Image Crete © macoeekS An insurer us lays investigate ary doubable insurance esis, is also a duty of the nsurer to accept and approve al geaune insurance clams made, 135 oar 2s possible wihout any furhar delays ard anoying hinrancos. I Seven Principles of Insurance With Exampl 1. Princ o Ubevimae i (nos Good Fah), Pini of sural eros, 2 3. Pipe o nse, 4 rei of Contin, 5. Peril of Subrogation, 6 Principle of oss Minimization, ane 7. Pirie of Causa Proxea (Nearest Cas) ntpkalyan-cltyblogspat.com/20" /0Sipincples-oFnsurance-7-basie-g OAdsby Boone Car Insurance Health Coverage ral. @ _Fearuren Dp Worts Top 10 Mos: Poisonous Xnomaus Ossie! Snakes oben il cong Bs 1 ina ra Gar ang Beton See Ano Ss DF Diternce Between Primary and Secondary Data Top ventans and Discoveries Dy Selontsis At ZUst- Sconce How to improve Homan Relatons? ow io pr Forcast Son mune Beste Tos 1 iow Sarat Penge? Lctrranor Ss cae ) ot rcs tures bess fase res Dinan onsets, Srnec and eco Ram ) canes air esearch ‘ei i 18arzazore Principles of Insurance -7 Basic General Insurance Principles Principles of Insurance “© Utmast Good Faith © Insurable interest Principle of indemnity Principle of Contribution Principle of Subrogation Principle of loss Minimization Principle of ‘CAUSA PROXIMA’ I 1. Principle of Uberrimae fidei (Utmost Good Faith) Utmost Good Faith "Both the parties i. the insured and the insurer should a good faith towards each other + The insurer must provide the insured complete correct and clear Information of subject matter. "The insurer must provide the insured complete correct and clear Information regarding terms and conditions ofthe contract. "+ This principles apolcable to all contracts of insurance. if, fie and marine insurance Prince of Uborime fli (a Latin phase), in mpl engin words, the Insurance, According oh pincple, th Insurance contact must be ign by both pares (insurer aninsuzed) nan abscte good fat or bole or rst. ‘Te parson geting insured must winaly close ans srrence: tothe insurer Insurers tabity gots vod (Le tgaly revoked or earcallo fany fat, about the subjact mater of insurance ae ste omit, Neen, fled orpesertod in wrong manne bythe insures ‘The pine of Uberimse del apes al ype af raurance contacts HE 2. Principle of insurable Interest Insurable Interest | The insured must have insurable interest in the subject matter of + tp ifeinsurance it refers to the lie insured, “= tn marine ingurance its enough if the insurable interest exits only tthe time of occurrence ofthe lee | In tre and general insurance * must be present at the sme of {aking poley and also atthe time of the gccutrence of oss. "The owner ofthe partys said to have insurable interest as long 2s heisthe evmer of tek + ttis applicable to all eantracts of insurance. ntpkalyan-cltyblogspat.com/20" /0Sipincples-oFnsurance-7-basie-g ox @ _rewaricies D> Imporance of Marksting Research to Goverament “Yat Pesto ison Wat is nance? Meaning Sefton Fears of Finance ) What is Fancal Ping? Mesnng Type of Financial Plane > What is Fnancal ar ton Scope Aris ferent Types of Banks - What Kids of Barks ? )y Conmarcal Banke“ Batiions, Prmary Secondary Functions ral. @ _ wanscement > Management Functions Ar 1 ering it ay ine Pitre By Oecvs Soot" Par Dwar > ecsion tig Peas ty Ropes an ) Pex ofdcogtonct ) ‘Srprsion- Ooze }> Deceniralsaion Advantages and > irae satya > mor Rosie Nara > ition otto cer P itso cy fins D Freer reso ocr ) oro ire Troon 1p David McClellané's Achievement D ions is ond oft ) Waist Sogretaton Dio orrig od ) Guay Coit" ay872872018 Principles of Insurance -7 Basic General Insurance Principles ‘Tho pincplo of insurable intrest stats thatthe porson going sured must Balance Shae of Commercial hve ingurable ores nthe object of insurance. A person has an igure Bank- lables and Assets, Inarest wan te physica exstnce ofthe nutes ebject ges him some gen" Haw to Open Bank Accoutt?7 butts nor-xistonce wil ge him 2 oss nsple words, te insured person Steps Te Open Bank Acco must for some franca loss by the damage of te insured abort, pw _Beening Bank Acco ar the Advantages ot For example The owner of taxa hs neural inerest nthe tae Saving Account Bank Meaning, cares or Acvantgos fl neurites etn that acca, fae : xed Depoat count of Bark From above exam, we can conclude het ownership plays avery crucal le Meaning, Features, Advantages because he i geting income from Bu, he als, ne wll not have an in evaluating insurable interest, Every person has an insurable iret in hie "p hate Garent Bank Acoaunt® est nhs busines of racing. Simiary, Rs Features and Averages ‘cred nas insurable terest nN debtor, F RecungBepout scan n Bank Meaning ara Features I 3. Principio of indomnity > tie a hea ? etnian = Principle of Indemnity * Indemnity means a guarantee or assurance to put the urea in hae Grosing of eave? the some postion in whieh he wor Immediately prior to the Offeror Tos of heck Cossrg happening f the uncertain event, Ye Insurer ungerstes 0 mats ~ faa Ter Machine (AT) pa the ess. EES the Aavartages of ATM Nach © tts applicable to fre marine and other genera insurance ) E-Banking- nina Banking = _Man Advantages of €-Barking * Under this the insurer agrees to compensate the insured for St Saar 27ers 1 compensate the Insured forthe Princes of God Lending Every Banker Flows Loans Indemnity means secu, protecton and compensation given aginst damage, Different Forms of Advances by tans ory _ Comarca Barks Lan Types “Y Datee ana Reeporsibiias of According tte penile ot incennty, an nsrance cont sige ony for Computer Oparatorin Sank gating potocton against unpradcied financial losses arising due to future )} Natonstaaton cf ana nda = cerns, src cor rl made for mang rt ee Hs ole ageten Odie Daria Purpose sto gve compensation n case of ary damege arose iasmaicesaaanil 00111998 Reconmensations In an insurance convact, the amount of compensations pai isn proprton to tne incred losses. The amount of compensation is Imted to te amount New Economie Refome othe _Baneng Sector nia Be assured or th actullosses, whichever Is loss. Th compensation must rot be tes r more than he acl damage. Compensation rat pad the specilad _p Funcons of Raserve Bank of loss doesnot happen due to apart eaten ding a spetc be peraa. M8 (RBI) Cred Poly of RB Thun nc ny fr he rato aps es rt aig oe @ _cxrecony mover incase of tie insurance, the prince of idery doas no apy beaut ae furan caoot be meseted ita ot mony. _) Admins aw I 4. Principle of Contribution “Dp Advecing senting” Principle of Contribution — “+ The principle is corellary a the principle of indemnity “+ tes applicable to all contracts of indemnity. “Veen “Under this princi the insured can coi the compensation only ssaton {othe extent of actual loss either hom any one rarer oF the ~ ~ Insurers. Principle of Contbuton sa early of the principle of indo. apoio ‘ll carvact of demo be neue has then cut more than one aly on the same subject mater. Aczorig oth pile, the insured can calm the ‘compensaton only tothe extent of actual oss eer rom all insur orm serene ze oe ri pa compereaton hn at ncn region ang For example Mr. Jt insures is property worth § 100,000 with two insurers "AG Li fr § 90000 ang *MatLo Li" for $69.00. Jenne actual propery Aosroyod is wort $60,000, then Mr. John can clam tho floss of $60,000 ntp:kalyan-city blogspot com/201/0S/princoles-o.insurance-T-basi-gonoral. html872872018 Principles of Insurance -7 Basic General Insu citar fom AIG LH, Mase Li, oF he ean lnm $36,000 fom AGL, ane $24,000 rom Met Lid cannot daim te same compensation frm other insurer and make = pref Secondly, fone insurance company pays the full compensation then it can I 5. Principle of Subrogation Principle of Subrogation "sper this principle after the insured is compensated forthe lose fe to damage to property insured, then the right of ownership of Such property passes an tothe insur, | This principle & corolary of the principle of indemnity and is apalcabie tal contracts of indemnity ‘Subrogation means substung on creda for anaes Princ of Subrogation is an ecenion and ancther coolly ofthe prin of Indommiy. Rao appli to alleoneacts of ndomniy. Aecoring the prin of subrogation, when the insured compensated for the oases due o damage to his inured property, en the cwnarahi gh af such property shits ote inure ‘Th princi ansible only when the damaged property has any value ator tho vant causing the damage. Tho insurer can nef ou of subrogation rights niyo the eet of the aroun he ha paid othe inate compensation, For example Mr John inure his house fort lon. The house i tally osroyd by the aoglgonce of his eeghbour MTom. The insurance company shall sot the cla of Mr. Ja fr $1 millon. At he same time, ican fl 2 law suit asint MeTom for $1.2 mon, the market vals of te house. If Insurance company wns the eae an cals $1.2 milion om MTom then ‘he insurance company wil retain $ 1 miton (which has aeady paid t Mr John) plus eter exponses suchas court fos. The balance amount, any wil be given to Me John, he nro I 6. Principle of Loss Minimization Principle of Loss of Minimization Under tis princinie its the duty ofthe insured to take all possible steps to minimize the loss tothe Insured property an the happening of uncertain event. level Best to minimize the loss of his Insured propery, in case of unos ovens Ike a fro cutbroak or blast et. The insured must ako all possible rmoasures and recossary slps to contol and reduce the losses in such a sconai. The insured must not neglect and behave tresponey dung such vera jst because the property Is sured. Hence it's a respon af he Insured to protect his sured property and avo futher losses For example Assume, Mr. John's houses at on fe dus to an ocr short ‘cul In his agi ona, Mr. Jt ma ty hit evel bes to sop re by all Possible moans, IMe fiat callhg newest fee department ofc, eskng neighbours fr emergency fre extngusners, ec. He must not remain nactve fand watch his house buring hoping, “Why shoud I wary? Ive insured my Ill 7. Principle of Causa Proxima (Nearest Cause) ntp:kalyan-city blogspot com/201/0S/princoles-o.insurance-T-basi-gonoral. html snce Principles 48apezoie Penciples of Insurance -7 Basic General Insurance Principles Principle of ‘Causa Proxima’ + The Joss of insured property cen be caused by more than one caiseln sheeession to another * The propery maybe Insured aginst same causes and not against. "= Insuch an instance, the proximate cause or nearest cause of los Is {tobe found out “the pronimate cause Is the one which & insured against the Inguratce company Is bound to pay the compensation and vice Pringle of Cause Proxima (a Latn pase, or Insite english words, the Prince of Proxmate (Le Nearest) Causa, means when a loss is caused by more than one causes, he proximate or te nearest or the closest cause The penile sats that wo fd cut whether the Isurer is fale fr the ess or not. the proxi (clesost and not the rmat (larest) must bo kes it. For example :-A cargo ships bate was punctured dus to rats and so 2 lor enlered and cargo was damaged. Hore there aro wo causes fr the amage ofthe cargo ship ~ () The eaves ship gating punetred beacuse of rat, and (i) The 88 water anterng sip tvough p water is insred but he fat cave eno. 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