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Elements of insurance contract To constitute insurance contract the following ingredients Indians are to be satisfied

1) Two parties To constitutes an insurance contract there must be a contract between two parties namely insurer and insured a) The Insurer is the company that issues insurance policies, handles claims, and sells policies. b) The Insurer is responsible in providing financial coverage to their customer in the form of sum assured in case of occurrence of the event (stated in the policy). c) The Insured, on the other hand, is the person or business covered by the policy against risk

2) Undertaking by insurer there must be an undertaking on the part of the insurance to protect the insured from loss or damage caused to the subject-matter upon the happening of an event

3) Undertaking by insured there must be an undertaking by the insured to make the payment of premium periodically monthly quarterly half yearly annually in the case of life policies or in lump sum in case of on life policy viz. fire Marine motor vehicle insurance inland transit insurance e.t.c without any default

4) Writing The document known as insurance policy contains terms and conditions must be in writing

a) It is to be noted that the insurance contract policy is not a public document within the meaning of section 74 of the Indian Evidence Act 1872 b) It is also document of contract entered into between the insured and the insurer

Case Laws '''New India Insurance Company Limited versus Smt. Krishna Sharma''' insurance policy contains the record of the terms conditions and obligations imposed on the parties of the insurance contract in a standard form

In Medical Defense Union Limited versus Department of Trade In this case the court held that there was no contract of insurance on the ground that on the occurrence of some event there had to be a right to receive money or Money's worth, and where the entitlement was nearly to some benefit other than money or Money's worth the contract was not one of insurance and so the union was not an insurance company

Department of Trade versus Cherispheres It was held that contract of insurance is a species of a contract of indemnity and hence the specified event must be such that on the happening of it the a shot must have suffered some loss or adversely affect the interest of the Ashok relating in some loss

Reference:lectures on law of insurance Book by Dr. Rega Surya Rao