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Which of the following is not a basic principle of insurance


The basic principles of insurance are:- Principle of Utmost Good Faith. Principle of Insurable Interest. Principle of Indemnity.

Which is not basic principle of insurance?

Maximization of Profit is not the principle of insurance. There are seven basic principles that create an insurance contract between the insured and the insurer: Utmost Good Faith, Insurable Interest, Proximate Cause, Indemnity, Subrogation, Contribution and Loss Minimization.

What are the basic principles of insurance?

In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.

What are the 7 principles of insurance?

Solution. Principle of indemnity is not applicable to life insurance.

What are the principles of insurance?

Principles of Insurance are as follows: It states that both the parties to contract must enter into a contract in good faith. They both should reveal all material information and facts regarding contract to each other accurately and honestly.

What is meant by the principle of insurable interest?

This principle states that insurance policy holder must have insurable interest in the subject matter of insurance. He must have some vested interest in it and must be affected by existence and non-existence of object of insurance. It is not necessarily required by insured to be the owner of insurance object.

What is the insurer's duty to accept genuine insurance claims?

It is also a duty of the insurer to accept and approve all genuine insurance claims made, as early as possible without any further delays and annoying hindrances. Principle of Causa Proxima (Nearest Cause). 1. Principle of Uberrimae fidei (Utmost Good Faith)




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