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Principle of warranties: The terms and conditions which are imposed while making insurance contract in addition to general terms are known as warranties. Both parties should follow such terms and conditions.
Principle of mitigation of loss: Insured should try to save his property if incident takes place. It is known as principle of mitigation of loss. If the property is lost even though he doesn't try to save such properties, then he can’t get compensation from the insurance company.Principles of Indemnity: insurance provides compensation equivalent to the amount of loss which is known as principles of indemnity. Insurance company doesn't provide profit to the insured.Principle of insurable interest: it is the most important principle of insurance. It plays significant role in insurance business. This principle says that the protection of insured property generates the benefit to the insured and if such property is lost, insured suffers.Principle of contribution: insured can make insurance of a property from more than one company. In the loss of such property, insured can get compensation from more than one company.
