The legal and economic ideas every insurance contract in India rests on, from utmost good faith to subrogation. This topic has 11 entries.
Principles of insuranceUtmost good faith (uberrimae fidei)Utmost good faith (uberrimae fidei) is the rule that both insurer and proposer must honestly disclose every material fact before an insurance contract is made, or the contract can be avoided.Principles of insuranceInsurable interestInsurable interest is the financial stake a person must have in a life or property, so that its loss would harm them; without it an insurance contract is treated as a void wager.Principles of insurancePrinciple of indemnityThe principle of indemnity says insurance should restore the insured to the financial position they were in just before a loss, no better and no worse, so no one profits from a claim.Principles of insuranceProximate causeProximate cause (causa proxima) is the dominant, effective cause of a loss; an insurer pays only when that cause is an insured peril and not an excluded one.Principles of insuranceSubrogationSubrogation is the insurer's right, after paying a claim, to step into the insured's shoes and recover the amount from the third party who caused the loss, up to what it paid.Principles of insuranceContributionContribution is the principle that when two or more indemnity policies cover the same loss, the insurers share the claim in proportion, and the insured cannot recover more than the actual loss.Principles of insuranceLoss minimisationLoss minimisation is the insured's duty to take reasonable steps to prevent a loss from getting worse once an insured event occurs, acting as a prudent uninsured person would.Principles of insuranceMoral hazardMoral hazard is the risk that having insurance changes a person's behaviour, making them less careful or more willing to claim, so that losses become more likely or larger than priced.Principles of insuranceAdverse selectionAdverse selection is the tendency of people who know they face higher risk to buy more insurance than others, so an insurer's pool ends up riskier than its prices assume.Principles of insuranceUnderwritingUnderwriting is the insurer's process of assessing a proposal's risk and deciding whether to accept it, on what terms and at what premium, following a board-approved underwriting policy.Principles of insuranceRisk pooling and the law of large numbersRisk pooling is the combining of many similar, independent risks so that the losses of a few are paid from the premiums of all; the law of large numbers makes those losses predictable.
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Regulation and regulatorsLife insuranceHealth insuranceMotor insuranceProperty, commercial and specialty insuranceGovernment and social insurance schemesDistribution and intermediariesDistribution performance metricsInsurance finance and actuarialReinsuranceClaims and policyholder serviceInsurance and tax