With reference to the fourth case (d), describe the basic principles of motor insurance.

Motor insurance being a contract like any other contract has to fulfil the requirements of a valid contract as laid down in the Indian Contract Act, 1872 and the complaint can be dismissed on the ground that the accident happened and death occurred due to breach of law and insurer is correct in repudiating the Accident Benefit Sum Assured. Basic Principles of Motor Insurance are as follows: (i) Utmost good faith: The principle of Utmost good faith casts an obligation on the insured to disclose all the material facts. These material facts must be disclosed to the insurer at the time of entering into the contract. All the information given in the proposal form should be true and complete. E.g., the driving history, physical health of the driver, type of vehicle etc. If any of the mentioned material facts declared by the insured in the proposal form are found inappropriate by the insurer at the time of claim it may result in the claim being repudiated. (ii) Insurable Interest: In a valid insurance contract it is necessary on the part of the insured to have an insurable interest in the subject matter of insurance. The presence of insurable interest in the subject matter of insurance gives the person the right to insure. The interest should be pecuniary and must be present at inception and throughout the term of the policy. Thus the insured must be either benefited by the safety of the property or must suffer a loss on account of damage to it. (iii) Indemnity: Insurance contracts are contracts of indemnity. Indemnity means making good of the loss by reimbursing the exact monetary loss. It aims at keeping the insured in the same position he was before the loss occurred and thus prevent him from making profit from insurance policy. (iv) Subrogation and Contribution: Subrogation refers to transfer of insured's right of action against a third party who caused the loss to the insurer. Thus, the insurer who pays the loss can take up the assureds' place and sue the party that caused the loss in order to minimise his loss for which he has already indemnified the assured. Subrogation comes in the picture only in case of damage or loss due to a third party. The insurer derives this right only after the payment of damages to the insured. Contribution ensures that the indemnity provided is proportionately borne by other insurers in case of double insurance. Another such instance is the Insurer paying claims in case of "Lost Vehicle" and subsequently the vehicle is recovered. In such cases, due to subrogation rights, the Insurer becomes the owner of such vehicle and steps in the shoes of the Insured.