PRINCIPLES OF INSURANCE EXPLAINED 2024 The system of insurance depends upon certain doctrine (principles) which both the Insurer and the Insured are required to obey. These are; Indemnity Insurable interest Utmost good faith (Uberrimae fidei) Proximity cause Subrogation Contribution Indemnity This principle requires that the compensation given to the Insured should only restore him to the … Read more
IMPORTANCE OF INSURANCE IN COMMERCE 1. It creates confidence among businessmen and Investors Insurance creates confidence among the businessmen and investors to undertake risky business ventures without fear of loss in which they would otherwise not have invested their money. 2. Provide Compensation Insurance Companies compensate the unfortunate people who actually suffer loss as a … Read more
TERMINOLOGIES USED IN INSURANCE RELEVANT TO DAILY BUSINESS ACTIVITIES In Insurance, the following terms are used; (i) Insured This is the person or firm taking out Insurance and who is promised to be compensated by the Insurance company in case of a loss. (ii) Insurer This is the Insurance company granting the Insurance policy e.g … Read more