CONTRACT BETWEEN INSURED AND INSURER IS KNOWN AS INSURANCE CONTRACT.
There are two types of insurance contract :
CONTRACT OF INDEMNITY:Except the life insurance contract ,all other types of insurance contracts are contracts of indemnity.These contracts are fire insurance , marine insurance , theft insurance , etc. Under this contracts, insured pays premium to insurance company and insurance company takes the responsibility of compensating the insured if he suffers any loss on insured property.
LIFE INSURANCE CONTRACT:This contract is not a contract of indemnity.Value of life of any human being cannot be estimated hence it is very difficult to calculate the exact amount of loss . Under such contracts insured pays a fixed premium every year and either at the expiry of policy or on his death.
There are two types of insurance contract :
CONTRACT OF INDEMNITY:Except the life insurance contract ,all other types of insurance contracts are contracts of indemnity.These contracts are fire insurance , marine insurance , theft insurance , etc. Under this contracts, insured pays premium to insurance company and insurance company takes the responsibility of compensating the insured if he suffers any loss on insured property.
LIFE INSURANCE CONTRACT:This contract is not a contract of indemnity.Value of life of any human being cannot be estimated hence it is very difficult to calculate the exact amount of loss . Under such contracts insured pays a fixed premium every year and either at the expiry of policy or on his death.
2 comments:
Thanks for explaining the various types of insurance contract. The above information helped me a lot to know about this useful concept. It seems that you do posses a great amount of knowledge about insurance. Do keep sharing more in future also.
commercial insurance quotes
What insurance policy covers educational institutions
Post a Comment