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6 Basic Principles of Insurance

Insurance business continues to evolve over time and known to the wider community . They also began to realize the importance of insurance for themselves, family , and his property.

But to be more confident with the choice , you should also know about the insurance principle . There are several explanations important to you is about the basic principles of insurance . At least six basic principles of insurance that must be met , namely :

Basic Principles of Insurance

1.  Insurable interest : A right to ensure all of which arise from a financial relationship between the insured and the insured with the law .

2. Utmost good faith; An action to disclose accurate and complete , all material facts about something that will be insured that whether requested or not . it means : insurer must honestly explain everything clearly on all of the terms / conditions of insurance and the client must also provide a clear and correct for objects or interests.

3. Proximate cause; The active, causing a chain of events that results in a result without the intervention of the start and working actively from a new and independent source .

See also [The procedure how to file a life insurance claim]

4. Indemnity; A mechanism in which the insurer provides financial compensation to put the insured person in a financial position where it was before to the loss ( Commercial code article 252 , 253 and confirmed in article 278 ) .

5.  Subrogation; The transfer of the right to demand from the insured to the insurer after a claim has been paid .

6.  Contribution; Rights to invite the other person equally bear , but it does not have the same obligations to the insured to help provide indemnity.

Thus the explanation of the basic principles of insurance that must be met . I hope this helps.
6 Basic Principles of Insurance Rating: 4.5 Diposkan Oleh: Belajar Kreatif