Business Environment and Law-Law Of Insurance
Fundamentals of Law of Insurance
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The contract of insurance is called an aerator contract, because it depends upon an uncertain event. Lord Mansfield described insurance as “a contract on speculation.”
Fundamental Principles Of
Insurance:
Good faith,
Insurable interest,
Indemnity,
Mitigation of loss,
Attachment of risk,
Causa proxima.
A contract of insurance is a contract, uberrimae fidei, a contract based on utmost good faith and if the utmost good faith is not observed by either party the contract may be avoided by the other.
The assured must have an actual interest called the insurable interest, in the subject-matter of the insurance; either he must own part or whole of it, or he must be in such a position that injury to it would affect him adversely.
Excepting life assurance and personal accident and sickness insurance, a contract of insurance contained in a fire, marine, burglary or any other policy is a contract of indemnity.
In the event of some mishap to insured property, the owner (the insured) must act as though he were uninsured, and make every effort to preserve his property.
A contract of insurance can be enforced only if the risk has attached.
Make the insurer liable for loss, such loss must have been proximately caused by the peril
Good faith,
Insurable interest,
Indemnity,
Mitigation of loss,
Attachment of risk,
Causa proxima.
Good Faith:
A contract of insurance is a contract, uberrimae fidei, a contract based on utmost good faith and if the utmost good faith is not observed by either party the contract may be avoided by the other.
Insurable Interest:
The assured must have an actual interest called the insurable interest, in the subject-matter of the insurance; either he must own part or whole of it, or he must be in such a position that injury to it would affect him adversely.
Indemnity:
Excepting life assurance and personal accident and sickness insurance, a contract of insurance contained in a fire, marine, burglary or any other policy is a contract of indemnity.
Mitigation Of Loss:
In the event of some mishap to insured property, the owner (the insured) must act as though he were uninsured, and make every effort to preserve his property.
Risk Must Attach:
A contract of insurance can be enforced only if the risk has attached.
Causa Proxima:
Make the insurer liable for loss, such loss must have been proximately caused by the peril
Tags : Business Environment and Law-Law Of Insurance
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