Important Points for IC 57 - Fire and Consequential Loss Insurance Exam
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The principle of subrogation and principle of contribution are corrolories to principle of indemnity.
The principle of subrogation is a corollary of the principle of indemnity. If the loss suffered by the insured is recoverable from third parties who are responsible for the loss, the insured?s rights of recovery are transferred or subrogated to the insurers when they indemnify the loss.
Damage to the stocks in cold storage premises is generally excluded but may be covered by endorsement under 'add-ons'.
The requirement of insurable interest gives legal validity to insurance contracts and distinguishes them from mere wagers. Insurable interest may be defined as the legal right to insure which right arises out of a pecuniary relationship between the insured and the subject matter of insurance whereby destruction or damage to the latter involves the insured in financial loss
The sum insured can be fixed on reinstatement value or market value, or agreed value.
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