The principle of insurance which ensures that an individual is restored to his former position after suffering a loss is

Source: JAMB · 2024

The principle of insurance which ensures that an individual is restored to his former position after suffering a loss is

  1. indemnity ✓
  2. insurable interest
  3. subrogation
  4. utmost good faith
Explanation

Indemnity means putting someone back in their original position after a loss. No profit, no loss.

Insurance pays you what you lost, not more. You cannot make money from your own loss.

If your ₦100,000 car is stolen, you get ₦100,000, not ₦150,000.

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