Legal Principles Of Burglary Insurance

Principles of Insurance Insurance:

- R. Venkatesan

It may be described as a social device to reduce or eliminate risk of life and property. Under the plan of insurance, a large number of people associate themselves by sharing risk through contributing small premiums attached to individuals. The risk can be insured against Life, Fire, Marine, Motor Vehicle, & burglary. Any risk contingent upon these may be insured against at a premium commensurate with the risk involves.

Law and Contract of Insurance:

The general principles of law of contract are applicable to the law of Insurance. The contract of Insurance is between two parties whereby one party called Insurer or underwriter who undertakes the risk in consideration for a fixed sum called premium to pay the other party known as Insured or Policy Holder upon the happening of an uncertain event. Insurance is a contract whereby, in return for the payment of premium by the insured, the insurers make good the losses suffered by the insured as a result of the occurrence of unforeseen events. An insurer is a company selling the insurance, an insured or policyholder is the person or entity buying the insurance.

Contract of indemnity:

The very foundation for law of insurance is that the contract of insurance in any insurance policy is one indemnity and in case of any loss against which the assured has been insured against, he shall be fully indemnified. This is the fundamental rule governing the principal rule of insurance and any contention challenging the validity of this rule and denying the assured party indemnity will have to be disregarded and set aside.