MP Board · Class 11 · Business Studies · Business ServicesWhich principle of insurance states that the insured must suffer a financial loss to claim compensation?
Step-by-Step Solution
Insurable interest dictates that the insured must have a financial stake or interest in the subject matter of the insurance.
Detailed Options Breakdown
Option : Principle of Utmost Good Faith
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
Option 1: Principle of Insurable Interest (Correct Answer)
Correct choice. Refer to the step-by-step verified solution guidelines above for details.
Option 2: Principle of Indemnity
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
Option 3: Principle of Subrogation
Incorrect choice. This distractor represents a common misunderstanding of the core principles of Business Services.
💡 Study Guide: This question tests core syllabus concepts from Business Services. For formulas, key summaries, and mock exam reference guides, read the full Business Services Revision Notes.