Page 25 - Insurance Times November 2019

LEGAL

PRINCIPLES OF

BURGLARY

INSURANCE

Principles of Insurance writer who under takes the risk in consideration for a fixed
sum called premium to pay the other party known as
Insurance:
Insured or Policy Holder upon the happening of an
It may be described as a social device to reduce or eliminate uncertain event. Insurance is a contract whereby, in return
risk of life and property. Under the plan of insurance, a for the payment of premium by the insured, the insurers
large number of people associate themselves by sharing make good the losses suffered by the insured as a result
risk through contributing small premiums attached to of the occurrence of unforeseen events.
individuals. The risk can be insured against Life, Fire,
An insurer is a company selling the insurance, an insured
Marine, Motor Vehicle, & burglary. Any risk contingent
or policyholder is the person or entity buying the insurance.
upon these may be insured against at a premium
commensurate with the risk involves.
Contract of indemnity:
The very foundation for law of insurance is that the
Law and Contract of Insurance:
contract of insurance in any insurance policy is one
The general principles of law of contract are applicable to indemnity and in case of any loss against which the assured
the law of Insurance. The contract of Insurance is between has been insured against, he shall be fully indemnified. This
two parties whereby one party called Insurer or under
is the fundamental rule governing the principal rule of
About the author insurance and any contention challenging the validity of this
rule and denying the assured party indemnity will have to
R. Venkatesan be disregarded and set aside.
BA, BGL, AIII, DIL.
Ex.Senior Assistant/ Therefore all policies of insurance in general contract of
In House Surveyor, indemnity. The character of property insured or the risk
United India Insurance Co. Ltd, Trichy inherent on the property are of no consequence. The

The Insurance Times, November 2019 25