Insurance may be defined as a
contract between two parties whereby ne party is called insurer who undertakes,
in exchange for a fixed sum named premiums, to pay the other party known as
insured a fix sum of money on the occurrence of certain event. However, the
insurance contract involves the element of general contract and the element of
special contract relating to insurance. Furthermore, the special contract of
insurances compiles principles such as,
Utmost Good Faith, Insurable Interest Indemnity, Subrogation, Warranties,
Proximate cause, Assignment and Nomination, return of premium. Whatsoever, to
be a contract considered as valid it must include certain essentials as given
below:
Agreement (offer and acceptance).
Legal Consideration.
Competent to make contract.
Free consent.
Legal object.
No comments:
Post a Comment