Licentiate Examination - IC 01 - Principles of Insurance Exam - Important Points
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As per the Principle of Subrogation, the Rights of the Insured are passed on to the Insurance Company, to recover the Claim-Amount, from the Third-Party, Responsible for the Loss.
If there are Two Policies on the Same Subject-Matter, the Principle of Contribution requires that, Both the Insurance Companies pay their Proportionate Share of the Claim, and the Insured does not make a Profit by making a Claim to Both the Companies.
The Principles of Indemnity, Subrogation, and Contribution, do not apply to Life Assurance.
The Principle of Utmost Good Faith imposes a Duty of Disclosure on Both, the Insurer and the Insure, to disclose All Material Facts, Relevant to the Insurance Contract.
Principle of subrogation - The substitution of one person in the place of another with reference to a lawful claim, demand, or right, so that he or she who is substituted succeeds to the rights of the other in relation to the debt or claim, and its rights, remedies, or securities.
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