What Is Your 'Contribution'? 3089635636924505613-blid-3156308449748959876

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The term 'Contribution', falls under the principles of insurance. When an insured obtains more than one policy on one risk, the principle of contribution comes into play. The aim of `contribution' is to distribute the actual amount of loss among the different insurers who are liable for the same risk under different policies in respect to the same subject matter. This becomes relevant, when a person has taken more than one insurance policy for the same subject (i.e, a car, house etc.).