Here the insurer undertakes the responsibility of compensating the insured against any possible damage or loss that he may or may not suffer. This principle says that once the compensation has been paid, the right of ownership of the property will shift from the insured to the insurer.
So the insured will not be able to make a profit from the damaged property or sell it.
This principle applies if there are more than one insurers.
In such a case, the insurer can ask the other insurers to contribute their share of the compensation.
Today there are 13 companies in life insurance and 13 in general insurance. And then there are other major players like New India, Tata AIG, Bajaj Allianz, ICICI Lombard etc.
Insurance companies are facing challenges such as winning the competition while playing by the rules and laws.They all pay their premiums and if one of them suffers financial losses, then the payout comes from this fund. In a lot of cases getting some form of insurance is actually required by the law of the land.Like for example when goods are in freight, or when you open a public space getting fire insurance may be a mandatory requirement.If the property is damaged the insurer must suffer from some financial losses.Insurances like fire and marine insurance are contracts of indemnity. There is no guarantee that the business will not suffer an unexpected loss or damages.So while we cannot protect our interests against all risks, we can opt for some insurance.If the insured claims full insurance from one insurer he losses his right to claim any amount from the other insurers.This principle states that the property is insured only against the incidents that are mentioned in the policy.Ans: India’s economy has been in a boom for the last two decades.There has been increased manufacturing and financial activities.