Insurable interest:
The interest of the person with the thing being insured. This can be also called as subject matter. For example, the car: it is not the engine or the yires but the actual loss to the owner due to losing the engine or tyres in an accident. The interest of the owner is his life and security while having the car. This interest is called the insurable interest or the subject matter. The subject matter of insurance is the legally recognised relationship of the owner of the car whereby he will suffer loss if the car meets an accident. This is essential otherwise an individual would claim indemnification even when he had not suffered any loss. The doctrine of insurable interest is also necessary to prevent insurance from becoming gambling.

Principle of indemnity:
A person should not get more than his actual loss. Although it is most probable in the general insurance, but in the life insurance too there are chances of an individual claiming more medical bills, pose more disability than actual, etc. The principle of indemnity prevents the insured from claiming more than the actual loss.

Principle of subrogation:
This applies mostly in General insurance whereby it prevents an insurer from collecting more than the actual loss.

Principle of Utmost Faith (Uberrrimae fidel):
It has moral as well as legal implications. The insurer has the right to terminate the contract if found contrary to this principle. According to the principle, the insured must be truthful in disclosing all the material facts which he knows or ought to know.