Insurance Products | Principles, Types, and Schemes Explained with Examples | MODULE D: FINANCIAL PRODUCTS AND SERVICES
Insurance Products: Comprehensive Guide What is Insurance? Insurance is a financial product that provides protection against financial loss. It is a contract (policy) in which an individual or entity receives financial reimbursement or protection against losses from an insurance company, in exchange for premiums paid. Fundamental Principles Governing Insurance Products Principle of Utmost Good Faith (Uberrimae fidei): Both parties must disclose all material facts. Principle of Insurable Interest: The insured must have a financial interest in the subject matter of insurance. Principle of Indemnity: Compensation is limited to the extent of loss. Principle of Contribution: If insured with multiple insurers, the compensation is shared. Principle of Subrogation: Transfer of rights from insured to insurer after settleme...