Subrogation And Some Other Important Principles of Insurance

Insurance is a contract; it is also known as a risk transfer mechanism. In such a contract, an insurance company has promised to pay compensation to another party who is the recipient of the payment of reasonable insurance policy premium to the insurance company to cover the subject of insurance.


If you are aware of all the basic principles of insurance and if you know very well of these basic principles, you will be in a better position to negotiate your insurance needs.

Some of the primary health insurance or fundamental principles are the following.
• Insurable interest
• Umberima Fadei
• Pay
• contribution
• Subrogation

insurable interest
It is a financial interest that the owner of the property, such as land or a car on insurance. The simple reality that could be detrimental to him should a loss success because of its financial interest in this property allows you to secure the property. If you have resources, you must purchase the goods or subrogation of insurance.

Umberima Fadei
This insurance principle of both parties to the insurance contract must communicate correctly, and entirely all the realities and facts of the risk materials proposed.

check
This protection policy is indicated that after a loss. The insurance company must ensure that they have placed the insured in the exact financial position that existed before there is a loss.

contribution
In a state where more than one insurance company covers a particular risk, if there is a loss then the insurance companies should contribute to an agreement with the statement.

subrogation
It is often said that the main contribution and subrogation are the result of the compensation, which means that when this two subrogation and contribution according to the principles that no compensation. In general, the functions of subrogation mainly on car insurance. When an incident involving two or more elements of carsFeature, there must be injuring motorist who is responsible for this confrontation. In this case, the insurance company has paid all damages to his client, who was not guilty, then recovered their payments to the contractor's insurance company, which is responsible for this accident. So, you must have owned or subrogation of insurance.