Contract of Insurance is an essential part of Insurance Law and is governed by the general Law of Contract. In a contract of insurance there is an agreement between two parties where one party agrees to indemnify loss sustained by the other party. There must be good faith on the part of the parties to the Contract of Insurance. Every Insurance covers an imagined risk. The risk must take place during the period of Insurance. The government Insurance companies have been the duty to ensure that general insurance business is ‘developed to the best advantage of the community’. Such interpretation of the contract of insurance should be adopted which is beneficial to the policyholder. Any determination of class or group entitled to avail contract of insurance with the Life Insurance Corporation must conform to the constitutional requirement of equality and fairness. No person can make a double insurance of the same thing.
