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Yes, insurance is a form of a wager. In legal terms it is called an aleatory contract which means that the contract participants agree ahead of time to take certain action in response to a defined event. For example, if you take out a health insurance policy (the contract) You are betting that you WILL fall ill, while the insurance company is betting you WON'T fall ill. As long as you remain healthy they get to keep your premium. If you fall ill they have to pay your medical bills.
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Explain the purpose of a contract with reference to a policy - short term insurance?
What is the purpose of a contract?
Why Life insurance contract is not a contract of indemnity?
is fire insurance or medi claim (health ins) or motor insurance or life insurance which of them is a contract of indemnity
Why is an insurance contract needed?
An insurance contract is needed to specify the exact terms of the insurance.
What does an insurance policy explain?
An insurance policy does not "explain" anything as such. Instead, it is a contract by which the insurance company assumes the financial risk of loss for certain occurrences from the insured in return for the payment of a premium. Part of the contract defines the scope of the risks that that the insurer is assuming; other parts define certain terms used in the insurance policy, and still other parts define what must occur or be done to trigger coverage. To that extent, the insurance policy is providing an explanation of its terms and conditions.
How far contract of insurance are contract of indemnity?
all types of insurance is not a contract of indemnity because life insurance cannot b measured in terms of money , that is why it is not a contract of indemnity
Can your car get repossessed for not having the right insurance?
If insurance is required by your contract then the 'wrong' insurance might be a contract violation allowing repossession. You have to read your contract.
Who are the parties that enter a auto insurance policy contract?
The Insurer and the Insured are parties to an insurance contract.
What are the essential elements of a contract of insurance?
there are four elements of insurance contract... offer,acceptance,consideration...
Who is the principal in a life insurance contract?
The Insured of the policy is obviously the Principal in a life insurance contract.
What type of contract do you need to get money for your damaged property?
Insurance contract with an insurance company Indemnity bond
Why is important to have utmost good faith in insurance contract unlike other commercial contract?
as it differentiate insurance contract from other commercial contract so it is important.A contract of insurance is a contract of Utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts id embodied in this important principle which applied to all forms of insurance.
Is A property or liability insurance policy a business or liability contract?
A property is not a contract or a business. A liability insurance policy is a kind of contract but not a business. the answer is b...
