(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
- What are the disadvantages of use of Automatic Teller Machines (ATMs) in banking?(Solved)
List the disadvantages of use of Automatic Teller Machines (ATMs) in banking.
Date posted: July 8, 2017. Answers (1)
- What are the goals of development?(Solved)
Highlight the goals of development.
Date posted: July 8, 2017. Answers (1)
- What factors constitute an efficient transport system?(Solved)
Give factors that constitute an efficient transport system.
Date posted: July 8, 2017. Answers (1)
- What are the features and characteristics of chain stores?(Solved)
What are the features and characteristics of chain stores?
Date posted: July 8, 2017. Answers (1)
- What are the features of insurable risks?(Solved)
Give the features of insurable risks.
Date posted: July 7, 2017. Answers (1)
- What items are included when computing national income using the expenditure approach?(Solved)
List the items that are included when computing national income using the expenditure approach.
Date posted: July 7, 2017. Answers (1)
- Why is a received invoice important in accounting?(Solved)
Explain why a received invoice is important in accounting.
Date posted: July 7, 2017. Answers (1)
- What methods may a country use to restrict international trade?(Solved)
Give methods that a country may use to restrict international trade.
Date posted: July 7, 2017. Answers (1)
- What are the basis of international trade?(Solved)
Give the basis of international trade.
Date posted: July 7, 2017. Answers (1)
- What are the challenges associated with a high ageing population in a country?(Solved)
Give the challenges associated with a high ageing population in a country.
Date posted: July 7, 2017. Answers (1)
- Under what circumstances would the per capita income statistics be a good indicator of the welfare of the citizens of a country?(Solved)
Give the circumstances under which the per capita income statistics would be a good indicator of the welfare of the citizens of a country.
Date posted: July 7, 2017. Answers (1)
- What are the ways of curbing cost push inflation?(Solved)
Give ways of curbing cost push inflation.
Date posted: July 7, 2017. Answers (1)
- What is a loan (liabilities)?(Solved)
Define a loan (Liabilities).
Date posted: July 7, 2017. Answers (1)
- What are drawings?(Solved)
Define drawings.
Date posted: July 7, 2017. Answers (1)
- What is capital?(Solved)
Define capital.
Date posted: July 7, 2017. Answers (1)
- What is stock?(Solved)
Define stock.
Date posted: July 7, 2017. Answers (1)
- What are the features of trade credit as a source of finance for business units?(Solved)
Give the features of trade credit as a source of finance for business units.
Date posted: July 7, 2017. Answers (1)
- Why may a multinational company prefer setting up a production unit in developing country instead of exporting finished goods to the country?(Solved)
Highlight the reasons why a multinational company may prefer setting up a production unit in a developing country instead of exporting finished goods to the country.
Date posted: July 7, 2017. Answers (1)
- Why should a consumer satisfy basic wants before secondary wants?(Solved)
Give reasons why a consumer should satisfy basic wants before secondary wants.
Date posted: July 7, 2017. Answers (1)
- What are the advantages of after sales services as a method of sales promotion to a customer?(Solved)
Give the advantages of after sales services as a method of sales promotion to a customer.
Date posted: July 7, 2017. Answers (1)