Question

Essay type questions:
Define the term insurance and state the principles of insurance.

Answer 1

Insurance is a contract where the insurer agrees in return for a premium to pay an agreed amount of money to the insured to make a loss, damage or injury to something of value in which the insured has a pecuniary interest as a result of some uncertain event.

The principles of Insurance are:

1. Utmost good faith

2. Insurable Interest

3. Indemnity

4. Proximate cause

5. Subrogation

6. Contribution

7. Mitigation.