Principle of contribution is used when multiple insurance policies covering same loss and payment for actual loss is proportionally divided among all.
Insurers do issue policies with regard to all types of insurance contracts. A policy as such is not the contract in itself, it is simply an evidence to the contract which already exists.
In insurance the principle of subrogation states that after payment of a claim, the insurers shall be entitled to take over the legal right of the insured against the liable third party for the purpose of recovery.
Insurable interest is a fundamental principle of insurance states that happening of the event insured against, or death of the life insured must cause the policy holder financial loss.
The principle of indemnity asserts that on the happening of a loss the insured shall be put back into the same financial position as he used to occupy immediately before the loss.
Insurance contracts are based upon the legal principle of uberrimae fides or utmost good faith.
The requirement of the insurable interest to be present only at the time of loss this makes a marine insurance policy freely assignable.
Representation is a statement made by the proposer to the insurer relating to a proposed risk. Warranty is an undertaking by the insured to the effect that some conditions shall be fulfilled or not.
A contact of marine insurance is an agreement whereby the insurer undertakes to indemnify the assured in the manner and the extent agreed upon.
The valuation by services removes the defects of memorandum clause which is used to free certain commodities from particular average and in the case of other commodities the damage has to amount to at least 5 per cent to become recoverable.