This Principle applies to all contracts except the contract of life insurance because estimation regarding loss of life cannot be made. The objective of contract of insurance is to compensate to the insured for the actual loss he has incurred. These contracts ‘provide security from loss and no profit can be made out of these contracts.
A. Utmost Good Faith
B. Indemnity
C. Insurable Interest
D. Causa Proxima
Answer:B
This Principle applies to all contracts except the contract of life insurance because estimation regarding loss of life cannot be made. The objective of contract of insurance is to compensate to the insured for the actual loss he has incurred. These contracts ‘provide security from loss and no profit can be made out of these contracts.
A. Utmost Good Faith B. Indemnity C. Insurable Interest D. Causa Proxima