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Basic Principles of Insurance
In the insurance world there are six basic principles that must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution.
The right to insure arising out of a financial relationship, between the insured to the insured and legally recognized.
Utmost good faith
An action to disclose accurately and completely, all facts material (material fact) about something that will be insured is requested or not. The meaning is: the insurer must honestly explain everything clearly about the extent of the terms / conditions of the insurer and the insured must also provide a clear and correct for objects or interests of the insured.
is an active cause, efficient cause that chain of events that lead to a result without the intervention of the start and working actively from a new and independent.
One mechanism by which the insurer provides financial compensation to place the insured in a financial position that he had prior to the loss (Commercial code article 252, 253 and affirmed in section 278).
Right transfer request from the insured to the insurer after a claim is paid.
While the insurer the right to invite any other person equally bear, but do not have the same obligations to the insured to participate in providing indemnity.