An Insurance Contract is a specific type of Contract regulated by the General Principles of the Contract Act. It can be defined as “a contract whereby one party promises in return for a consideration money to pay to the other party money or money’s worth on the happening of a future uncertain event which is adverse to the insured person’s interest.”
Insurance Contracts can be classified under the following categories:-
Life Insurance, or an endowment insurance, where the insurer undertakes to pay a specified sum of money to the insured person (or his nominee) upon the happening of a particular event.
Employers’ Liability Insurance, where such liabilities are covered by and under the ESI Act, or the Workmen’s Compensation Act
Property insurance relating to burglary, fire etc.
Marine Insurance relating to loss by injury to ship etc.
Fidelity Insurance
Motor Accident Insurance, Railway Accidents and Aviation Insurance
