1.

Explain the Principle of Contribution.

Answer»

Contribution is also a Corollary or Offshoot of Principle of Indemnity.

An individual may have more than one policy for the same in respect in of the same property and in case of a loss if the Insured is able claim compensation for the said loss from all Insurers it is but obvious that he would be making a profit from this loss. This is against the Principal of Indemnity.

This situation is taken care of by the Principle of Contribution.



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