Insurance Contracts
•insurance contract:
A document representing the agreement between
an insurance company and the insured.
•insuring agreement:
specifies the risks that are covered, the limits of the policy,
and the term of the policy.
All insurance contracts specify:
•conditions, which are requirements of the insured, such as paying the
premium or reporting a loss
•limitations, which specify the limits of the policy, such as the maximum
amount that the insurance company will pay
•exclusions, which specify what is not covered by the contract.
ESSENTIALS OF COMMERCIAL CONTRACT
[Link] of General Contract
1. Offer & Acceptance
2. Consideration
3. Legal capacity to contract or competency
4. Consensus “ad idem”
5. Legality of object
B. Elements of Special Contract relating to Insurance:
1. Life Insurance
a. Utmost Good Faith (Uberrima Fides)
b. Insurable Interest
2. General Insurance
a. Utmost Good Faith (Uberrima Fides)
b. Insurable Interest
c. Indemnity
d. Subrogation
e. Proximate Cause
Types of Insurance Contracts
Insurance is the process of transferring the risk of a large
financial loss to a company willing to pay for the loss in
exchange for a small guaranteed payment. As such,
insurance can exist for just about anything in every
industry. There are as many different types of insurance as
there are items to be insured. Most consumers will work
with only a handful of insurance types to satisfy their
insurance needs.
Auto Insurance
Auto insurance pays for damages arising out of a loss
involving your automobile. Depending on how you build
your policy with your agent or broker, your auto insurance
policy may pay for injuries you cause to other people,
damage you cause to others' property, medical payments to
you and your passengers and damage to your car caused by
collision or other types of loss.
Homeowners Insurance
Homeowners insurance pays for losses relating primarily
to your home. Homeowners insurance companies agree to
pay for damage to your home, secondary structures on
your property and your belongings. In addition, many
policies pay for additional living expenses if you must live
elsewhere after a covered loss. Finally, the liability portion
pays for injuries sustained on your property as well as
injuries and damage you may cause while off premises,
such as while rollerblading or riding your bike.
Life Insurance
Life insurance pays an agreed-upon benefit at the time the
insured person dies. Some policies make a portion of the benefit
available to you when you are diagnosed with a terminal illness.
This type of insurance is designed to pay for financial burdens
your death leaves behind, such as funeral expenses, mortgages
and other debts, as well as for future expenses such as college
education and maintaining your family's standard of living
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Umbrella insurance is named as such because it sits like an
"umbrella" on top of your existing auto and home liability
insurance policies. It extends the liability limits you already have
by the amount purchased under the umbrella policy. These
policies are typically sold in increments of $1 million
Fire Insurance
Fire Insurance is the insurance taken
out to cover the cost of damage caused
by fire.
Marine Insurance
Marine Insurance is a contract of indemnity in which the
insurer agrees to indemnify the insured in consideration of
certain premium against loss or damage caused by certain
perils of the sea to the subject matter insured.
Miscellaneous Insurance
Fidelity Insurance
Fidelity insurance protects the employer from losses due to the dishonesty of its
employee.
Employer’s Liability Insurance
It protects the organization against damages payable to a client due to the negligence
of the employee in the execution of the work entrusted.
Cash in Transit Insurance
Cash in transit insurance helps to cover the risk of dacoity or theft of money
transported from one place to the other.
Credit Insurance
Credit insurance is done to meet risks due to bad debts, insolvency, death of the
customers, etc
Public Liability Insurance
Public liability insurance covers the public who may be injured on the business
premises of a merchant.
Burglary Insurance
Burglary insurance is useful for banks, insurance companies or other financial
institutions where money transactions are numerous. It protects these
institutions from dacoity, burglary, and theft.
Key Insurance
Key insurance insures the life of key employees who cannot be replaced
easily.
Crime Insurance
Crime insurance gives protection to individuals or institutions against losses
due to robbery, theft or burglary.
Plate Glass Insurance
It covers the risk of loss due to breakage of costly plate glass on the
windows of houses, showrooms, shopping malls, etc. due to riots or any
other local disturbances.
Unemployment Insurance
Unemployment insurance insures an income to the insured during
unemployment.
Service Contract
A service contract is a contract or agreement, for a separate or
additional consideration and for a specific duration, to perform
the repair, replacement or maintenance of any kind of property,
or indemnification for the repair, replacement or maintenance of
property, due to a defect in materials or workmanship or wear
and tear.
Basis Service Contract providers
Selling Standards comply with a variety of consumer protection
standards, there is not a similar active regulator
such as the Financial Conduct Authority
ensuring that sales practices are of a high
standard.
Regulation have to comply with a variety of consumer
protection standards, there is not a similar
overseeing and active regulator such as the
Financial Conduct Authority.
Making a Complaint would make every attempt to address your
complaint, you will not necessarily have access
to a free independent arbitration service if the
service provider is unable to close your
complaint to your satisfaction.
Insolvency In order to protect their customers in the event
of insolvency, some service contract providers
set aside funds to cover their non-insured
schemes. However, this may not always be the
case, so it is important to check your contract
document carefully.