Sequence 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 Skew Insurance Company. Mrs Nina (the MD of Sequence) contends that she should only enter into negotiations with Skew, if and only if the insurers are willing to drop operation of these principles in his fleet policies.

Required:

1. Analyze the likely consequences of Skews consent to Mrs Ninas demands? ( 6 points)
2. How true is it that insurance principles only exist for the benefit of insurers than insureds? Elucidate (6 Points)