The insured should not be allowed to make any profit by selling a damaged property or in the case of lost property being recovered. Which principle of insurance is associated with this?

Principle of Utmost Good Faith

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Principle of Subrogation

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Principle of Indemnity

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Principle of Contribution

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Solution

The correct option is B
Principle of Subrogation

Principle of Subrogation: It refers to the right of the insurer to stand in the place of the insured, after settlement of a claim, as far as the right of insured in respect of recovery from an alternative source is involved.

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Similar questions

Fill in the blank:

The principle of indemnity is not applicable to ______ insurance.

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

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.

Q. Essay type questions:
What is indemnity? Why the principle of indemnity is not applicable to life insurance?

State the following statement is True or False:

The principle of insurance under which the compensation paid to the insured which is equal to the actual loss is indemnity.

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The insured should not be allowed to make any profit by selling a damaged property or in the case of lost property being recovered. Which principle of insurance is associated with this?

The correct option is B Principle of Subrogation Principle of Subrogation: It refers to the right of the insurer to stand in the place of the insured, after settlement of a claim, as far as the right of insured in respect of recovery from an alternative source is involved.

The correct option is B
Principle of Subrogation

Principle of Subrogation: It refers to the right of the insurer to stand in the place of the insured, after settlement of a claim, as far as the right of insured in respect of recovery from an alternative source is involved.