Six Fundamental laws of Insurance

1. Indemnity : Insurance company covers the actual loss of policyholder/Insured.
2. Insurable Interest : The loss incurred must affect insured directly.
3. Utmost good faith/uberrima fides: Insurance company must conceal personal information about policyholder.
4. Subrogation : Insurance company gets legal rights to act on behalf of insured.
5. Cause of Proxima/proximate cause : Actual cause of loss.
6. Contribution : When claim is to be settled by one or more insurance compnies this concept comes into picture.

What is Insurance..one liner...

In simple words, Insurance is nothing but preparation for unexpected event.