INSURANCE MUTUALITY

The principle of mutuality represents beyond doubt the essential element of insurance. There is a mutual promise given by the participating assured to each other which protects them against perils that may endanger them. In this manner the assured are at the same time members and assured of the same insurance organization.
It should be noted that insurers in their desire to gain profit often forget the principles of insurance. In striving to accomplish a humanitarian society it is necessary that principles of mutuality and solidarity are sustained when organizing insurance in the shape of mutual insurance.