Nature of the contract of insurance
Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of enforceable promise. Insurers promise to pay benefits upon the The function of insurance is to safeguard against financial loss by having the both parties have entered into a contract and the insurer issues an insurance Elements of Insurance Contracts are basically 2 types; (1) the elements of the general Use clauses describe the nature, extent; and scope of the insurance and 14 Jun 2013 At first sight, the topic “the legal nature of insurance contracts” might appear to be of a mere dogmatic nature. Indeed, when exploring the issue 28 Apr 2016 Contracts of insurance attract a unique set of principles of the nature of the contract and the particular circumstances in which it is entered.
Abstract: All contracts of insurance are contracts of utmost good faith, so both The duty, if at all, is negative in nature, namely, not to induce the other party to
Insurance contracts are unilateral. This means that only one party (the insurer) makes any kind of enforceable promise. Insurers promise to pay benefits upon the The function of insurance is to safeguard against financial loss by having the both parties have entered into a contract and the insurer issues an insurance Elements of Insurance Contracts are basically 2 types; (1) the elements of the general Use clauses describe the nature, extent; and scope of the insurance and 14 Jun 2013 At first sight, the topic “the legal nature of insurance contracts” might appear to be of a mere dogmatic nature. Indeed, when exploring the issue 28 Apr 2016 Contracts of insurance attract a unique set of principles of the nature of the contract and the particular circumstances in which it is entered. plex as the insurance contract itself grows more complex in nature, operation and . 16 Association of Life Insurance Counsel Pro- ceedings, Vol. 8, (1940), p. 54. explained the nature of a contract of insurance in the following terms: “Now, in my judgment, the subject-matter of the contract of insurance is money, and money
A condition is a provision of a contract which limits the rights provided by the contract. In addition to being executory, aleatory, adhesive, and of the utmost good faith, insurance contracts are also conditional. Even when a loss is suffered, certain conditions must be met before the contract can be legally enforced.
1.3 The Nature of Insurance One of the basic factors in life and health premiums is the interest earned by the insurance company on the premiums it receives and subsequently invests. The concept of insurance developed from the need to minimize the adverse effects of risk associated with the probability of financial loss. By the nature of Insurance Contracts, the insurer undertakes to indemnify the insured in the event of the happening of unforeseen occurrences. For liability Insurance contracts, the insurer undertakes to indemnify the insured in case of liability to a third party, thus the insurance contract is taken for the benefit of the third party.
“Consumer insurance contract” means a contract of insurance entered into, Whether it amounts to a misrepresentation or not depends on the nature of the
plex as the insurance contract itself grows more complex in nature, operation and . 16 Association of Life Insurance Counsel Pro- ceedings, Vol. 8, (1940), p. 54. explained the nature of a contract of insurance in the following terms: “Now, in my judgment, the subject-matter of the contract of insurance is money, and money
16 Dec 2011 Indeed, at the heart of any discussion on insurance contract law is the nature and extent of the obligation on both parties to act with utmost good
Liability in contract is based on voluntary undertaking of the obligations by the individual. As such, the law assumes that: The parties are free to make a contract any way they wish, based on the concept of freedom and equality. In making the bargains, the parties enjoy equal position. Legal nature life insurance As per life insurance act, life insurance is the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is insured on death or the happening of any contingent, dependent on human life and shall be deemed to include: Granting of annuilities on human life Granting of compensation on the happening of specified contingencies.
An insurance contract shall bind an insurer to undertake certain risks in return make payments or if specifically agreed, to make provision in kind to the other Insurance contract operates on the principle of utmost good faith where the insured is supposed to provide all the material information truthfully without misrepresentation. Insurance contract need be simple as well as legal. The contract should not be for something illegal in the eyes of the law. nature of insurance contract NATURE OF INSURANCE CONTRACT : A contract of insurance is an agreement whereby one party, called the insurer, undertakes, in return for an agreed consideration, called the premium, to pay the other party, namely the insured, a sum of money or its equivalent in kind, upon the occurrence of a specified event resulting in a loss to him. The contract of insurance must satisfy basic requirements of a contract at common law, it must be characterized by an offer which is unequivocally accepted and consideration must be furnished. The parties must have intended there dealing to be a legally binding agreement. A contract of insurance must be in writing by some note or memorandum. nature of insurance contracts Life is full of uncertainty, some of which end up being positive while others tend to be negative. Your business for example could be doing well today and then later in the day a riot breaks out and your assets get looted or engulfed in flames.