Contract of Insurance

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Contract of Insurance
Agreement between the insurer and the Insured where the insurer promises the insured party that she will save or indemnify him (insured) from losses caused by a particular contingent event, on the payment of an amount called premium. It carries the guidelines to protect each party to the contract What are the components of an insurance contract: Firstly, an insurance contract should mention the amount needed to purchase the insurance coverage, also known as the insurance policy premium. The insured can pay this premium to the insurer annually, bi-annually, or quarterly. Secondly, an insurance contract should mention the policy limit, the amount of coverage that the insurer provides to the insured. Finally, the insurance contract should mention the deductibles, the amount or percentage that the insured agrees to pay before the insurer sets in to pay the compensation. Insurance contracts can be of two types based on the type of object for which the insurance coverage is sought by the insured. Contract of insurance can be Life If an insurance contract provides coverage against the insured's loss of life. All other insurance contracts that provide coverage for objects other than life are called non-life or general insurance contracts. An insurance contract in general must meet four conditions in order to be legally valid: it must be for a legal purpose; the parties must have a legal capacity to contract; there must be evidence of a meeting of minds between the insurer and the insured; and there must be a payment or consideration. It is important to read through an insurance contract carefully before signing so you understand what you're agreeing to. Also, review the contract to check for any errors that may affect your coverage or costs. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful

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