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Utmost Good Faith, Insurable Interest Indemnity Corollaries of Indemnity - Subrogation, Contribution Proximate Cause
Utmost Good Faith, Insurable Interest Indemnity Corollaries of Indemnity - Subrogation, Contribution Proximate Cause
IRM
SESSION 6
DEFINITION
In financial sense
Definition (Contd.)
In legal sense
3
It is a contract by which
one party (Insurer)
in consideration of price paid to him
proportionate to risk provides security to
the other party (Insured) that
o he shall not suffer loss, damage or prejudice
by the happening of certain specified events.
Insurance is meant to protect insured
against uncertain events which may cause
disadvantage to him
Fundamental Principles
of
Insurance
because
Principle of Indemnity
15
Corollaries of Indemnity
Principle of Subrogation
16
that.
Subrogation avoids the situation where an
Corollaries of Indemnity
Principle of Contribution
17
one risk.
Insurers to share the cost of indemnity.
Right of the insurer, who has paid the claim,
proportionately.
cause
Loss to be indemnified if the proximate
Suicide clause
Accident benefit