Principles of Insurance

When should select insurance.

A lot of things to consider, maybe this could add small writings for references in taking insurance.

When faced with a choice that determines our future, which right do we have to choose?

OK buddy, don't worry. Refer to the following writing.

 

The insurance industry, good insurance or life insurance, have principles that become a guideline for the entire organization of the activities of insurance anywhere.

Insurable Interest

You are said to have the interests of the insured of the object when you are suffering from financial losses if disaster which caused the loss or damage to these objects. Financial interests this lets you insure your possessions or your interests.

In the event of a disaster of the object insured and proven that you have no financial interest over the object, then you are not eligible to receive compensation.

Utmost Good Faith

That meant is that you are obliged to notify clear details and conscientious about all important facts relating to the insured object. This principle explains the risks-risks covered or excluded, all terms and conditions of coverage are clearly and accurately. The obligation to provide such important facts are valid:

Since the agreement on the Treaty be discussed until the insurance contracts of insurance completed, i.e. when we approve the contract. At the time of the extension of the contract of insurance.

In the event of a change in the contract of insurance and about the things that have to do with those changes.

Indemnity

If the insured objects affected giving rise to the loss and we will give indemnity to restore your financial position after losses being incurred losses shortly before. Thus you are not entitled to damages are greater than the losses You suffered.

Subrogation

The principle of subrogration (custody) this relates to a situation where the losses experienced by the insured are the result of errors of a third party (another person). This principle gives guardianship to the insurer by the insured if involving third parties. In other words, if the insured suffered a loss due to the negligence or fault of a third party, then XYZ, after giving indemnity to the insured, the insured's position will change in filing claims to a third party.

The mechanism of Application subrogasi

The insured must choose one substitute for a source of losses, from third parties or from insurance.

If the insured has received indemnities from the third party, he would not get compensation from insurance, unless the amount of reimbursement from a third party they will not completely.

If the insured has gotten reimbursement from insurance he may not sue third parties. Due to the demanding rights already assigned to insurance companies.

Contribution

You can only insure the same property on some of the insurance companies. But if there is a loss of the object insured then automatically applies the principle of contribution.

The principle of contribution means that if we had paid full compensation be your right, then we reserve the right to sue other companies involved a coverage (collectively property insurance closing belongs to you) to pay for part of losses each proportional to the amount of coverage that closed its doors.

This principle does not apply to life insurance and personal accident insurance relating to death or permanent disability.

Proximate Cause

In the interests of the insured suffered natural disasters or accidents, then first of all we will find the cause of an active and efficient moves of an uninterrupted chain of events so that in the end it came to natural disasters or accidents.