Insurance

Reasons Why Insurance Business is growing


The insurance sector is growing at a faster rate. This can be attributed to the emerging risks as each day dawns. You will get to learn more on insurance at . We are faced with a number of risks. These risks pose a possibility of losses and sometimes it is very hard to recover from these losses. This is why insurance is very important. With insurance, you do not have to keep worrying about tomorrow. The insurance company takes off this burden from your shoulders but this is at a consideration. You get to pay premiums and in return you will get compensated in the event that the risk insured against causes some loss.

However, there are rules commonly referred to as principles that must exist to form a valid contract. These principles include; principle of utmost good faith that requires the insured to provide all the information necessary about the subject matter being insured against. The information must be true with no misrepresentation. On the other hand, the principle of insurable interest requires that the person seeking out insurance should prove that he or she will suffer direct loss if the damage occurs. There are those principles that govern what the insured will get from the insurance company. The principle of indemnity provides that the insured should not gain from insurance but should only be compensated to the extent of the loss.

Similarly, the principle of subrogation prevents the insured from gaining by providing that any item which remains after the insured is completely compensated belongs to the insurance company. Also, the principle of contribution prevents the gain. It states that in the event that the insured has taken a policy with more than one company on the same risk, then these companies will share in the loss and thus the insured does not claim full amounts from all the companies.

Reasons Why Insurance Business is growing by
No votes yet.
Please wait...

Archives

shares
%d bloggers like this: