Mapambano Transport is convinced that procuring conventional insurance policies for its fleet of haulage vehicles, will disadvantage it because of the operation of the principles of contribution, indemnity and subrogation by its potential insurers - Makini Insurance Company. Mr. Ngazi (the MD of Mapambano) contends that he should only enter into negotiations with Makini, if and only if the insurers are willing to drop operation of these principles in his fleet policies.

Required:

a)Analyze the likely consequences of Makini's consent to Mr. Ngazi's demands?

(5 marks)

b)How true is it that insurance principles only exist for the benefit of insurers than insureds? Elucidate (5 marks)