Page 52 - Ebook IC S01
P. 52
Survey And Loss Assessment IC-S01
Underwriting Practices and Contract of Insurance
The insurance contract
Insurance is a contractual agreement between the insurer and the policyholder.
The insured pays the premium as consideration and the insurer promises to
indemnify the insured in case of any contingent loss.
Insurance policy is evidence of contract and it must specify
The risk covered
Perils covered
Amount of liability
Payment of premium
Obligations of the policyholder
Consequences in case of a default
Terms and conditions affecting the contract
In order to be valid and enforceable the contract must be legal and must not be
against the public policy.
Insurance policy cannot be granted for stolen goods
Life insurance does not cover death by suicide
Insured peril must be random and accidental
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