6 Insurance Principles Which We Need To Know
1. Insurable Interest (Interest for Insured)
That is, an insured person must have an interest (interest) on the property (object) that can be insured (insurable). Objects that are insured must also be legal and do not violate the law and fall into the appropriate category.
In case of any occurrence of a disaster or a problem that resulted in the object concerned being damaged then the insurer will get financial compensation
Example:
• Family relationships, such as husband, wife, child, father or mother.
• Business relationships, such as creditors with debtors, firms with key people in the company.
2. Utmost Good Faith (Good Faith)
An action to express accurately and completely, all material facts about something to be insured whether requested or not. That is, an insurer must be honest and openly explain clearly and correctly on everything about the object insured.
This insurance principle also explains the risks that are guaranteed or excluded including all terms and conditions of coverage clearly and thoroughly.
3. Proximate caus (Proximal Kausa)
A major active and efficient cause that causes a loss in a sequence of events. the claim stipulation in this insurance principle is that if the insured object is unfortunate or accident, then the first time must and will be done by the insurance company is looking for the main active and efficient cause that can move a series of uninterrupted perustiwa which eventually led to the accident. From these considerations can only be determined the number of claims received by the policyholder.
4. Indemnity (Indemnity)
A mechanism requiring the insurer to provide financial compensation (compensation) in order to place the insured in his financial position immediately before the occurrence of losses (KUHD article 252, 253 and affirmed in article 278).
However, this idemnity insurance principle also has a provision stating that the insurer is not entitled to provide compensation greater or greater than the client's financial condition for the losses suffered. For example, in case of illness, the insurance company will pay or reimburse the cost of the hospital something with the bills that have been paid previously.
5. Subrogation (Transfer of Rights or Guardianship)
That is the transfer of rights from the insured to the insurer if the insurer has paid compensation against the insured.
6. Contribution (Contribution)
That is, if the insured insured an object to several insurance companies, then there will be what is called the contribution in the provision of protection from each company.