Which principle refers to 'placing the insured in the same financial position after a loss as he was before the loss'?

The principle that refers to 'placing the insured in the same financial position after a loss as he was before the loss' is indemnity. This principle is fundamental to insurance and ensures that the insured does not profit from a loss but is instead restored to their pre-loss financial state.

Indemnity is designed to prevent the insured from experiencing a financial windfall due to an insurance claim, which helps maintain the integrity of the insurance system. By adhering to the principle of indemnity, insurers aim to provide compensation that reflects the actual financial loss incurred, thereby promoting fairness and accountability within the insurance context.

The other concepts, while important in their own right, serve different functions. Contribution deals with how multiple insurers share a loss when the same risk is covered by more than one policy. Insurable interest ensures that a party has a legitimate interest in the subject matter of the insurance, which is necessary for a policy to be valid. Subrogation allows the insurer to pursue recovery from a third party after compensating the insured for a loss, to prevent the insured from receiving double compensation. Each of these principles plays a unique role in the insurance framework, but indemnity is specifically focused on the financial restoration of the insured after a loss.