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Contract Of Insurance One From Year To Year - Law of Insurance

   Posted On :  08.05.2018 05:07 am

The general rule is the except in the case of life assurance, a contract of insurance is a contract from year to year only.

Contract Of Insurance One From Year To Year:
 
 
The general rule is the except in the case of life assurance, a contract of insurance is a contract from year to year only.
 

Premium:

 
 
The premium is the price for the risk undertaken by the insurer. It is the consideration for the insurance.
 

Days Of Grace:

 
 
The days of grace are the days allowed by the insurance company after the expiry of the stipulated period of insurance during which the assured can pay the premium in order to continue or to renew the policy of insurance.
 

Policy:

 
 
The policy is a formal and enforceable stamped document signed and issued by the insurance company embodying the terms of the contract between the parties.
 

Interim Receipt, Certificate Or Cover Note:

 
 
A cover note or interim certificate is a document which the insurance company, on receiving the proposal, may issue pending the execution of a policy or the final decision of the directors as to acceptance or rejection of the proposal.

 Re-Insurance:

 
 
Re-insurance is a contract which insures the thing originally insured, and by which an insurer is to be indemnified against any loss which he may sustain by reason of being himself compelled to pay the assured under the original contract of insurance.
 

Double Insurance:

 
 
When the same subject-matter is insured with two or more insurers and the total sum insured exceeds the actual value of the subject-matter, it is known as double insurance and it amounts to over-insurance.
 

Subrogation:

 
 
The right of subrogation is a necessary corollary of the principle of indemnity and is essential for its preservation.
 

Contribution:

 
 
Contribution is the right of the insurers to claim from others some payment towards the loss, and arises only where there is double insurance.
 

Marine Insurance

 
 
The law relating to marine insurance is found in the Marine Insurance Act, 1963. A contract of marine insurance is an agreement whereby the insurer undertakes to indemnify the assured, in the manner and to the extent thereby agreed, against marine losses, that is to say, the losses are incidental to marine adventure (Sec.3). There is a marine adventure when (i) any insurable property is exposed to maritime perils; the earnings or acquisition of any freight, passage money, commission, profit or other pecuniary benefit, or the security for any advances, loans, or disbursements is endangered by the exposure of insurable property to maritime perils; (3) any liability to third party may be insured by the owner of, or other person interested in or responsible for, insurable property by reason of maritime perils [Sec. 2(e)].

 

 

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