Business Studies

What are the principles to be followed by the insured?


SOLUTION
The principles to be followed by the insured are as follows :-

1. Utmost good faith: The insured is required to disclose all the material facts to the insurer.

2. Insurable interest: The insured must have some pecuniary interest in the subject matter of the insurance contract. He must have an interest in the
preservation of the thing or life insured because he will suffer financially on
the happening of the event against which he is insured.

3. Subrogation: The insurer should not make any profit after he has received a compensation for the damage. In case of any extra profit he should surrender it to the insurer.

4. Mitigation: The insured should try to minimize the damage and act in the same manner as he would do if the goods were not insured.
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Subjective Medium Published on 18th 08, 2020
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