Home | ARTS | Business Environment and Law | Life Insurance - Law of Insurance

Business Environment and Law-Law Of Insurance

Life Insurance - Law of Insurance

   Posted On :  08.05.2018 05:17 am

Life assurance may be defined as a contract in which the insurer, in consideration of a certain premium, either in a lump sum or by other periodical payments, agrees to pay to the assured, or to the person for whose benefit the policy is taken, a stated sum of money on the happening of a particular event contingent on the duration of human life.

Life Insurance
 
 
Life assurance may be defined as a contract in which the insurer, in consideration of a certain premium, either in a lump sum or by other periodical payments, agrees to pay to the assured, or to the person for whose benefit the policy is taken, a stated sum of money on the happening of a particular event contingent on the duration of human life.
 

Life Insurance Is Not A Contract Of Indemnity:

 
 
“The contract commonly called life assurance when properly considered is a mere contract to pay a certain sum of money on the death of a person, in consideration of the due payment of a certain annuity for his life…. This species of insurance in no way resembles a contract of indemnity.”

Insurable Interest:

 
 
The assured must have at the time of the contract an insurable interest in the life upon which the insurance is effected.
 

Person In His Own Life:

 
 
A person is presumed to have an interest in his own life and every part of it, and can insure for any sum whatsoever, and as often as he pleases.
 

Relatives:

 
 
A wife has an insurable interest in the life of her husband, and vice versa.
 
 

Persons Not Related:

 
 
A creditor has an insurable interest in the life of his debtor to the extent of the debt.

 

Tags : Business Environment and Law-Law Of Insurance
Last 30 days 62 views

OTHER SUGEST TOPIC