Principles of insurance

• Indemnity – Insurance is a contract of indemnity where the insurance company indemnifies the insured against certain risks for a consideration known as premium.
  Insurable interest – means the loss of which will directly affect the insured.
  Utmost goo
• d faith – means that the insured and the insurance company will not willfully hide anything from each other.
  Mitigation – means the insured will not behave irresponsibly and will take due care so that the risk of loss or the loss is minimized.
  Subrogation – means the insurance company acquires legal rights to act on behalf of the insured i.e. the insurance company steps into the shoes of the insured.
  Causa Proxima or Proximate Cause – means the proximate cause of loss to ascertain whether the loss is covered under the policy.