SCHOOL OF LAW

COURSE FILE
Course : Law of Insurance – BA4104/
BBA4104
Faculty Name : Dr. Arpita Verma
Course Type : Core
Semester and Year : VII
L-T-P : 4+1+1
Credits :5
Department : Law
Course Level : UG
INTRODUCTION TO THE COURSE:
In a world increasingly defined by uncertainty and vulnerability,
insurance has emerged as a cornerstone of economic resilience and
social protection. This course offers an exploration of the legal principles
underpinning the Indian insurance industry. It examines the conceptual
foundations of insurance as a mechanism for risk mitigation and loss
distribution, tracing its development from traditional marine coverage to
a vast array of modern insurance lines including life, property,
professional liability, and more.
Students will engage critically with the principles underpinning the
formation, performance, and enforcement of insurance contracts,
including utmost good faith, insurable interest, proximate cause, and
indemnity. The curriculum traverses the major lines of insurance—life,
health, property, and emerging sectors such as cyber and livestock
insurance—while addressing cross-cutting legal challenges such as moral
hazard, adverse selection, and fraudulent claims.
This course equips students with the legal acumen necessary to navigate
a dynamic and highly regulated industry. By the end of the course,
students will develop the analytical skills to interpret insurance
contracts, assess regulatory interventions, and evaluate real-world legal
issues of insurance industry.

COURSE OBJECTIVES:
 Identify and articulate the essential insurance law concepts by
interpreting statutory provisions, regulatory frameworks, and case
law.
 Apply core doctrines of insurance contract interpretation—
including, Uberrimaefidae: Subrogation, Contribution, Proximate,
and indemnity—to evaluate and resolve hypothetical and real-world
legal scenarios.
 Analyse legal provisions across various branches of insurance law
(e.g., life, fire, marine, motor vehicle)
 Develop skills of analysing practical issues that plague the
insurance industry.
 Investigate new domains of insurance—such as cyber insurance,
livestock insurance, and crop insurance.

COURSE OUTCOMES:
 CO1: Explain the foundational legal principles of insurance
contracts—including utmost good faith, insurable interest,
proximate cause, and indemnity—by referencing statutory
provisions and relevant case law.
 CO2: Demonstrate the use of interpretive doctrines such as contra
proferentem and equitable estoppel by resolving hypothetical
disputes through structured legal arguments.
  CO3: Differentiate and critique the regulatory frameworks
governing life and non-life insurance sectors in India, focusing on
the role of IRDAI and its impact on compliance.
 CO4: Evaluate & assesses the legal complexities and potential
reforms in an emerging insurance domain (e.g., cyber, livestock, or
crop insurance).

BRIEF DESCRIPTION ABOUT MODULES:

Module-I: Introduction to Insurance law
 Definition, types and role of insurance, parties of insurance, nature of
insurance
 History and development of insurance in India and abroad.

Module-II: General Principles of contract

Offer, acceptance, consideration, intention to create legal relationship,
capacity of parties, consensus ad-idem and lawful object.

Module-III: Concepts of Law of Insurance

1. Distinction between Insurance/Assurance.
2. Double insurance, Reinsurance and Underinsurance
3. Meaning of concepts of insurance law – Insurable interest,
Premium, Risk.
4. Assignment of policies

Module-IV: Special principles applied to Law of Insurance –

(1) Uberrimaefidae: (2) Indemnity (3) Subrogation, (4) Contribution (5)
Proximate cause (6) contra proferentem.

Module-V: Fire Insurance

1. Meaning and significance of fire insurance
2. Nature and basic principles of Fire Insurance contracts.
3. Fire policies - Perils insured - Fire claims - Scope of applicability of
special principles to contract of fire insurance.

Module-VI: Life Insurance

1. Nature and scope of life insurance, definition, kinds of life
insurance, the policy and formation of a life insurance contract
2. Event insured against life insurance contract
3. Circumstances affecting the risk
4. Amounts recoverable under life policy
5. Persons entitled to payment, settlement of claim and payment of
money
Module-VII: Marine Insurance:
1. Nature and scope of marine insurance
2. Classification of marine policies
3. Insurable interest, insurable value
4. Voyage –deviation
5. Perils of the sea, mixed sea-land perils
6. Partial loss of ship and of freight, salvage, general average,
particular charges
7. Measure of indemnity, total valuation, liability to third parties

Module-VIII: Motor Vehicle Insurance

1. Nature and scope of Motor Vehicle Insurance
2. Effect of insolvency or death on claims, insolvency and death of
parties, certificate of insurance
3. Liability insurance and Public liability insurance
4. Motor claims

Module-IX: Regulatory Environment

1. The Insurance Act, 1938
2. Insurance Regulatory Development Authority of India (IRDAI)- role,
powers and functions.
Module-X: New Dimensions to insurance
1. Cyber insurance
2. Livestock and crop insurance
3. Health insurance
4. Climate risk insurance

TEXT BOOKS:

1. Avtar Singh, Law of Insurance 3rd ed. (EBC 2022).

2. K.S.N. Murthy & K.V.S. Sarma, Modern Law of Insurance in India 6th ed.
(LexisNexis 2019).
3. M.N. Srinivasan & K. Kannan, Principles of Insurance Law 11th ed. (LexisNexis
2021).

REFERENCE MATERIAL:

1. Gaurav Varshney, Insurance Laws 1st ed. (LexisNexis 2017).

2. IRDAI Guidelines and Circulars, Insurance Regulatory and Development Authority
of India, [Link] (accessed July 2025).
3. John Birds, Modern Insurance Law 10th ed. (Sweet & Maxwell 2013).
4. Kenneth S. Abraham & Daniel Schwarcz, Insurance Law and Regulation: Cases and
Materials 7th ed. (Foundation Press 2020).
5. Taxmann, Insurance Law Manual 26th ed. (Taxmann 2024).
 6. T.W. Morgan, Porter’s Law of Insurance 7th ed. (Sweet & Maxwell 1925).

EVALUATION POLICY OF THE COURSE:

Components of Course Evaluation Percentage

Mid-Term Examination 25%

Internal Research Assignment 25%

End-Term Examination 50%

Total 100%

Maximum Marks: 100 Marks

LECTURE WISE PLAN:

Lecture-wise Plan

No. of Sessions Topic

6 Introduction to Insurance law

3 General Principles of contract

9 Concepts of Law of Insurance

10 Special principles applied to Law of Insurance

10 Fire Insurance

10 Life Insurance

10 Marine Insurance

6 Motor Vehicle Insurance

2 Regulatory Environment

4 New Dimensions to insurance

Total sessions – 70 (each session 55 Minutes)
Total Number of Teaching Hours -

TEACHING PEDAGOGY
Lectures: Lectures will focus on defining and illustrating key principles
such as utmost good faith, insurable interest, proximate cause, and
indemnity, with reference to statutory provisions and relevant case law.
Students will be required to apply these principles in case study
assignments and exams.

Problem-Based Inquiry: Students will be presented with hypothetical

scenarios based on real-world insurance disputes, requiring them to
apply legal principles to resolve the issues.

Case Study Analysis: In-depth analysis of complex insurance cases,

including examination of policy language, legal arguments, and court
decisions.

Role-Playing: Students will participate in role-playing exercises,

simulating negotiations, mediations, and court proceedings related to
insurance claims.

Group Projects: Collaborative projects will require students to research

and analyse specific areas of insurance law, such as cyber insurance or
livestock insurance, and present their findings to the class.

Guest Lectures: Industry experts and legal practitioners will be invited

to deliver guest lectures, providing students with insights into real-world
applications of insurance law and current industry trends.

List of Cases:
1. Pink v. Fleming (1890) 25 QBD 396

2. Mithoolal Nayak v. Life Insurance Corporation of India. AIR 1962 SC

814

3. Kasim Ali Bulbul v. New India Assurance Co. AIR 1968 J & K 39

4. Smt. Krishna Wanti Puri v. Life Insurance Corporation of India, AIR

1975 Del. 19

5. Smt. Dipashri v. Life Insurance Corporation of India, AIR 1985 Bom

192

6. Life Insurance Corporation of India v. Asha Goel, AIR 2001 SC 549

7. New India Assurance Co. Ltd. V. M/s Zuari Industries Ltd. (2009) 9
SCC 70
8. Simmonds [Link] (1920) All ER Rep. 162

9. Harris v. Poland ( 1941) All ER 204: 1 K.B.D. 204

10. Vikram Greentech (I) Ltd. v. New India Assurance Co. Ltd AIR 2009
SC 2493

11. Bajaj Allianz General Insurance Co. Ltd. and Ors. v. The State Of
Madhya Pradesh, Supreme Court Judgment dated: 24.04.202

12. L.I.C. of India v/s Channasbasamma, AIR 1991 SC 392

13. Vijay Kumar v/s New Zealand Insurance Co. AIR 1954 Bom.

14. Bhagwani Bai v/s L.I.C. of India AIR 1984 M.P.

15. Lakshmi Insurance Co. v/s Bibi Padmavati AIR 1961 Punjab

16. L.I.C. of India v/s Smt. Vijaya Chopra AIR 2008 (NOC) 2334

17. L.I.C. of India v/s Smt. Chandra Kanta AIR 2008 (NOC) 2334

18. L.I.C. of India v/s Mrs. Shashi Sethi AIR 2008 H.P. 67

19. London general omnibus co vs Holloway [1912] 2 KB 72

20. Smt. Sakhitombi v/s Zonal Manager, L.I.C. of India, Calcutta AIR
2009 Gauhati 90

21. United India Insurance Co. Ltd. v/s Shri Hasan Sultan Nadaf
[(1992) 3 CPJ 64 (National Commission)

22. Castellain v/s Preston [1883 2 Q B 38}

23. Nagappa v. Gurudayal Singh (2003) 2 SCC 274

24. Ibrahim v. Raju (2011) 10 SCC 634

Project Topic Allotment: