Define the following principles as used in insurance
Indemnity
During compensation, insurance aims to reinstate the insured back to the financial situation he/she was just before the risk occurred
Utmost good faith
When taking an insurance policy or making a claim, the insured is expected to disclose all material facts to the insurer.
Subrogation
Once the insured has been compensated appropriately, any other benefits that he/she may get will revert to the insurer.
Contribution
In case of double insurance, any compensation due to an insured will be paid by the insurers in an agreed proportion so as to conform to the principle of indemnity
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