Insurance

Types of insurances :

• Accident insurance
• Education insurance
• Marine insurance
• Aviation insurance
• Life insurance
• Fire insurance

Definition :

• A contract of insurance is a contract whereby the insurer agrees to indemnify the insured against a loss which may arise upon the occurrence of some event or to pay a certain definite sum of money on the occurrence of the particular event.
• The loss which is being insured against is called the risk.
• The policy means the insurer and the insured enter into a contract of insurance, and the document containing the terms of the contract.
• A premium - consideration paid by the insured either in the form of lump sum or periodical amount.

Differences between Ordinary Contract and Insurance Contract :

Ordinary Contract

• the doctrine of utmost good faith is not applicable.
• insurable interest is not needed.

Insurance Contract

• doctrine of utmost good faith is very important.
• the insured must have insurable interest in the subject matter.

Contracts of Indemnity
In a case of a loss against which the policy has been made, the insured is entitled to be indemnified which means to be compensated for his loss, but he cannot recover more tahn the actual loss.

Insurable Interest :

• means an interest (financial or otherwise) in the subject matter of a contract of insurance, which provides the insured with the right to enforce the contract.
  
• said to have an insurable interest if he will suffer loss in the event of property being destroyed.

Doctrine of Utmost Good Faith

• Insurance contract require the contracting parties to disclose to each other all information which would influence either party's decision to enter into the contract, regardless of whether such information was requested or not.
• Failure to disclose material information gives the other party the right to avoid the contract