Principle Of Insurance Contract. Z in case any of these principle is missing the insurance. The legal principles of insurance that are generally applicable are discussed as follows.
The fundamental principle is that both the parties in an insurance contract should act in good faith towards each other, i.e. 18 years and of sound mind. In regard to insurance, there are five basic principles to understand and honor by the insured and the insurer in order for the insurance contract to become legal.