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(i) Indemnity.
The insured would be compensated in such a way that he/ she is put back to the financial position he/ she was just before the risk insured took place.
(ii) Subrogation.
Whatever remains after the insured has been compensated becomes the property of the insurer.
(iii) Utmost good faith.
The person taking out insurance cover should disclose all relevant information/ facts relating the property or person insured.
(iv) Proximate cause.
For the insured to be compensated there must be a very close relationship between the loss suffered and the risk insured against.
(v) Contribution.
If the insured has taken policies with more than one insurance company covering the same risk, in the event of loss the insurers contribute proportionately to indemnify the insured.
maurice.mutuku answered the question on July 8, 2017 at 07:47
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