Procedure of obtaining an insurance coverage
If someone needs to have an insurance, firth he should submit an insurance proposal to a selected insurance company after accepting the proposal by the company both parties come to a written agreement which is called the insurance agreement
Parties related to insurance agreement
First party -; insured the party that submits the insurance proposal or the person who obtains the coverage.
Second party-; insure party that accepts the insurance proposal or the insurance company
Third party-; connected external parties that deal with the implemented agreement
Essential Features of a valid insurance agreement
• Idea of a legal obligation
• Insurance proposal or an offer
• Legal validity
• Ability to have a legal obligation by parties.
Principles of insurance
• A valid contract
• Insurable interest
• Utmost good faith
• Risk must attach
• Proximate cause
• Term of policy
Out of above concepts insurable interest, utmost good faith, indemnity, subrogation proximate cause, contribution are generally treated an insurance principles.