Insurable interest- to insure something, one must benefit financially by its existence and suffer financially by its loss
E.g. you can insure your house but not your neighbour's
Utmost good faith- when completing a proposal form or claim form for insurance, one is obliged to answer all questions truthfully and disclose all relevant information which may affect the contract
E.g. penalty points
Indemnity- one cannot make a profit from insurance
E.g. car valued at €10,000, max compensation €10,000
Subrogation- Once an insurance company has paid compensation for an insured item, the right if ownership of that item passes to the insurance company
Contribution- when the same risk is insured with more than one insurer and they divide the cost of claim between them