There are 6 kinds of basic principles that must be met in the world of insurance, namely: insurable interest, utmost good faith, proximate cause, indemnity, subrogation and contribution.
- insurable interest : The right to insure arising out of a financial relationship, between you and the subject matter insured and can be legally recognized.
- Utmost good faith : An action to disclose accurately and completely, all facts material (material fact) about something that would be insured, whether requested or not. For example: Adira must honestly explain everything clearly about the extent of the terms / conditions of the insurance, and you also have to provide a clear and correct for objects or interests of the insured.
- proximate cause : Means the active, efficient cause of events which brings about a result without the intervention of any force started and working actively from a new and independent source.
- Indemnity : A mechanism in which the insurer provides financial compensation to put you in a financial position that you had prior to the loss
- Subrogation : The transfer of the right to request from your insurer after a claim has been paid.
- Contribution : Insurer the right to invite other insurance companies to equally bear, but do not have the same obligations to you in providing indemnity.