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Basic Principles of Insurance

 In the insurance globe there are 6 basic concepts that must be met, ie insurable rate of passion, Utmost great belief, proximate cause, indemnity, subrogation and payment.

Basic Principles of Insurance

Insurable Rate of passion

The right to guarantee occurring from a monetary connection, in between the guaranteed to the guaranteed and lawfully recognized.

Utmost great belief

An activity to reveal accurately and totally, all facts material (material truth) about something that will be guaranteed is asked for or otherwise. The meaning is: the insurance provider must truthfully discuss everything plainly about the degree of the terms / problems of the insurance provider and the guaranteed must also provide a clear and correct for objects or rate of passions of the guaranteed.

proximate cause

is an energetic cause, efficient cause that chain of occasions that lead to an outcome without the treatment of the begin and functioning proactively from a brand-new and independent.


One system whereby the insurance provider provides monetary payment to place the guaranteed in a monetary position that he had before the loss (Industrial code article 252, 253 and verified in area 278).


Right move request from the guaranteed to the insurance provider after an insurance claim is paid.


While the insurance provider the right to welcome other individual equally birth, but don't have the same responsibilities to the guaranteed to take part in providing indemnity.

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