1.

Elaborate the principles of insurance and its application in life assurance.

Answer»

The concept of insurance is risk distribution among a group of people. Hence, cooperation becomes the basic principle of insurance.

To ensure the proper functioning of an insurance contract, the insurer and the insured have to uphold the 7 principles of Insurances mentioned below:

  • Utmost Good Faith
  • Proximate Cause
  • Insurable Interest
  • Indemnity
  • Subrogation
  • Contribution
  • Loss Minimization


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