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Insurance Laws and Practices Rupesh Roshan Singh, Lovely Professional University

Notes Unit 4: Contract of Insurance

CONTENTS
Objectives
Introduction

4.1 Meaning of Insurance Contract
4.2 Types of Insurance Contract
4.2.1 Life Insurance

4.2.2 Types of Non-Life Insurance
4.3 Conditions Necessary for Contract
4.3.1 Offer and Acceptance
4.3.2 Legal Consideration
4.3.3 Parties Competent to Contract

4.3.4 Free Consent
4.3.5 Legal Object
4.4 Insurance Documents

4.5 Partial Insurance
4.6 Summary
4.7 Keywords
4.8 Review Questions
4.9 Further Readings

Objectives

After studying this unit, you will be able to:
Explain the meaning of insurance contract

Discuss the types of insurance contract
Describe insurance documents
Discuss partial insurance

Introduction

In the previous unit, you have studied about the nature and scope of insurance along with the
various functions of insurance. You have learned about the difference between insurance,
gambling and hedging. It also summarized some of the related terms of insurance such as risk,
loss etc. The unit also explained about the role of insurance in the development of economy.
In this unit, you are going to study about the contract of insurance. Insurance is a contract.
A contract of insurance is a contingent contract. The general principles of law of contract must be
complied with for a contract of insurance to be valid. Contract of insurance comes into existence

48 LOVELY PROFESSIONAL UNIVERSITY