1. Principle of Insurable Interest
Insurable Interest, also known as insurable interest, refers to the legally recognized interest of the insured in the subject matter of insurance. The principle of insurable interest means that the insured should have an insurable interest in the subject matter of insurance. If the insured does not have an insurable interest in the subject matter of insurance, the insurance contract is invalid. In international cargo transportation insurance, the insurable interest is mainly manifested as the value of the goods themselves, and also includes freight, insurance goods, tariffs and expected profits associated with the value of the goods themselves.
2. Principle of Proximate Cause
The Principle of Proximate Cause means that the insurer is only liable for losses that have a direct causal relationship between the insured risk and the loss of the subject matter of insurance, and is not liable for losses of the subject matter of risk caused by risks outside the scope of insurance liability.
3. Principle of Utmost Good Faith
The Principle of Utmost Good Faith means that the insured and the insurer must maintain the utmost sincerity when signing the insurance contract and during the validity period of the contract. The buyer and seller shall not deceive or conceal each other. The insurer shall explain the terms and conditions of the insurance contract to the insured. When applying for insurance, the insured shall truthfully inform the insurer of the important facts about the subject matter of insurance that he knows or should know in normal business, so that the insurer can judge whether to agree to underwrite or decide the conditions of underwriting. The insured must also promise in the insurance contract to do or not do something, to guarantee the existence or non-existence of a certain situation, or to fulfill a certain condition. For example, the insured promises not to use an old ship with a ship age of more than 15 years to transport goods. my country’s Maritime Code has the following provisions: If the insured deliberately fails to truthfully inform the insurer of important circumstances, the insurer has the right to terminate the contract and not refund the insurance premium.
4. The principle of indemnity
The principle of indemnity, also known as the principle of loss compensation, means that when the subject matter of insurance suffers losses within the scope of insurance liability, the insurer shall perform its compensation obligations in accordance with the provisions of the insurance contract. However, the amount of compensation paid by the insurer shall not exceed the insurance amount on the insurance policy or the actual loss suffered by the insured.
5. Principle of Subrogation
The Principle of Subrogation means that when the insured object suffers a loss within the scope of insurance liability and caused by the liability of a third party, the insurer has the right to obtain the insured’s right to claim compensation from the third party responsible for the loss within the limit of the amount it has paid.