Page 60 - DCOM309_INSURANCE_LAWS_AND_PRACTICES

Unit 4: Contract of Insurance

Notes
The insurance coverage period started from Friday and will end on July 14, public relations
officer of Jagannath temple, Laxmidhar Pujapanda said. “The insurance period included
the nine-day Rath Yatra festival and Niladri Bije that is on July 14,” Pujapanda said.

Kins of those, who die at the insured locations during the fortnight, are eligible for ` one
lakh from the temple. Earlier the Jagannath temple had insurance coverage facility on the
three-km Grand Road alone. Moreover, pilgrims were insured inside the Jagannath temple
few years ago. “While insurance coverage is available round the year inside the temple
premises, the facility is given on Grand Road during Rath Yatra only,” Pujapanda said.
The government had introduced insurance benefit inside the shrine and on the Grand
Road following a stampede near the sanctum sanctorum in 2006. Four pilgrims were
trampled to death during the month of Kartika. The temple insured the by-lanes connecting
to Grand Road after a woman died in a stampede near Dolabedi Kona (a narrow lane) on
Rath Yatra last year.
Sources said the temple has so far disbursed insurance to six pilgrims, who died in a
stampede in front of chariots on Rath Yatra day in 2008.

Source: http://articles.timesofindia.indiatimes.com/2011-07-01/bhubaneswar/29730923_1_jagannath-
temple-12th-century-shrine-rath-yatra
Self Assessment

Fill in the blanks:
5. General insurance covers all other categories of insurance other than ………………..
6. ……………………….. insurance is insurance taken for a particular period.

7. General insurance contracts are yearly contracts and are based on the ………………………….
principle.

8. Marine insurance is divided into ………………………. marine insurance and
……………………… marine insurance.
9. Fidelity guarantee covers the risk of the employers in the event of ……………………. by
an employee.

4.3 Conditions Necessary for Contract

You need to know that Section 10 of the Indian Contract Act, 1872 says a contract to be valid must
have the following elements:
1. Agreement (offer and acceptance).

2. Legal consideration
3. Parties must be competent to contract
4. Free consent
5. Legal object.

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