Introduction
Insurance is a tool used to indemnify a person of his/her loss. It indirectly acts as a safety net for the people to perform and take risks without much fear which increases their efficiency exponentially. The concept of insurance covers all kinds of losses which can be classified under life insurance and general insurance. The life insurance covers any loss of life cases and general insurance covers all other kinds of losses. To ensure proper functioning of such an important concept in the society, there are principles which govern this field. Principle of utmost good faith, insurable interest, proximate cause, subrogation, contribution, loss minimization and indemnity are the principles of insurance. All these principles are applicable for general insurance whereas principle of utmost good faith, proximate cause and insurable interest applies for life insurance because life of a person cannot be indemnified with anything apart for the policy amount taken. Life Insurance being a very subtle theme has a huge impact on the population and a study on this matter will aid not only the people seeking for a cover for their lives but also will help the people providing insurance an overview of the industry in the society. Life insurance has been of a huge blessing for people around the world at the most difficult of times due to loss of life but it is not all that a smooth process in order to get the claim for which they have applied the policy. There are many cases to prove that the claims have been repudiated due to the fault of the insured and due to the negligence of the insured, there have been wrong decisions taken. To understand the reasons behind such occurrences, this study is undertaken which will help us understand the decision-making process for the final verdict taken for the policy claim.
References
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