Utmost good faith (uberimea fidei): this principle states that a person who takes out an insurance policy must disclose all material facts that will enable the insurance company to assess the extent of the risk involved and determine the premium to be charged.
Indemnity: this principle states the insured is not allowed to make profit out of the insurance contract. In the event of loss the insured is restored to the position that he/she was before the event occurred.
Subrogation:this principle implies that the insurer has a right to common law in a contract of indemnity to step into the place of the insured after indemnifying him/her.
