"In insurance, six basic principles must be met, ie insurable interest, Utmost good faith, proximate cause, indemnity, subrogation and contribution. Insurable Interest The right to insure arising out of a financial relationship, between the insured to the insured and is 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. proximate cause It 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. Indemnity One mechanism by which the insurer provides financial compensation to place the insured in a financial position that he had before the loss. Subrogation Right transfer request from the insured to the insurer after a claim is paid. Contribution While the insurer has the right to invite any other person to equally bear, but do not have the same obligation to the insured to participate in providing the indemnity."

Abhijith S

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