Name the principle of insurance for each of the following statements:

(a)The insured is expected to disclose all the important facts related to the property insured.

(b) Insured must have some economic interest in the subject matter of Insurance contract.

(c) To claim for insurance the insured must take reasonable steps to minimize the loss.

(d) Insured is entitled to recover the loss suffered by him, up to the limit of policy amount

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Solution

(a)The insured is expected to disclose all the important facts related to the property insured- Utmost Good Faith

(b) Insured must have some economic interest in the subject matter of Insurance contract-Insurable Interest

(c) To claim for insurance the insured must take reasonable steps to minimize the loss- Mitigation

(d) Insured is entitled to recover the loss suffered by him, up to the limit of policy amount- Indemnity

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Similar questions

"Insured must disclose the relevant facts related to subject matter". Identify the principle highlighted?

It is the prime responsibility of the insured party to take reasonable steps to minimise loss/damage to the insured property. Name the principle of insurance in this scenario.

Which principle states that it is the duty of insured to take reasonable steps to minimise the loss or damage to the insured property?

Mention which function explains the following:

It is the duty of the insured to take reasonable steps to minimise the loss or damage to the insured property.

Which of the function explains the following :

After the insured is compensated for the loss or damage to the property insured by him or her then the right of ownership of such property is passed on to the insurer.

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