Basic Principles of Insurance

There are several fundamental principles of insurance is very important that must be fulfilled by both the insured and the insurer for a contract / agreement applicable insurance (not canceled).

The fundamental principles of insurance are as follows:

a. Principle of Good Faith (Utmost Good Faith)
b. The principle of interest that can Insure (Insurable Interest)
c. Principle of Indemnity (Indemnity)
d. The principle of Subrogation (Subrogation)
e. Principle of Contribution (Contribution)
f. Principle of Cause and Effect (Proximate Cause)