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What Are The Fundamental Principles Of Insurance?

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Law of large Numbers/ Averages - Many contributors cross subsidise some losers.
Principle Insurable Interest - Insured should have a relationship with subject matter insured.
Principle of Utmost Good Faith - Complete & fair disclosure of risks
Principle of Proximate Cause - Reason of damage should be covered under insurance contract
Principle of indemnity - - Insurance should not lead to profit

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