Overview

• The intent of all insurance is to remunerate the buyer for a loss resulting from a type of risk to his life, business, and marketing that he expects. Insurance laws involve the regulations of the content, business, processes which handle the claim.
• A Contract of insurance is an agreement by which one individual promises to make immeasurable the loss of different, in recompense of a sum of money, on the incident of a detailed event, e.g. fire accident or death.
• Law understands protection as a method of sharing risk too high to be borne by one person.

• Life Insurance - Life insurance is a contract that guarantees the payment of a certain sum of money to the individual (or nominee) against which the insured event occurs.

The contract is valid for payment of that amount  among during: 

1. The maturity date or, 
2. Fixed dates or, 
3. Sudden death 

• General Insurance -  General insurance implies Fire, Marine, and different insurance which incorporates insurance upon burglary or theft, fidelity guarantee, insurance for employer's responsibility, and insurance of engine vehicles, cattle, and products.

1. The Insurance Act, 1972 and the General Insurance Business (Nationalisation) Act, 1972 direct Fire and Marine Insurance, 
2. Indian Marine Insurance Act, 1963 directs marine insurance in our nation. These regulations include requirements associated with the constitution, administration and covering up of insurance businesses, and the administration of insurance companies of all kinds. 

Indemnity

• A deal of insurance included in a fire, marine, burglary or any other policy is a deal of indemnity.
• This indicates that the insured, in event of loss upon which the order has been advertised, shall be refunded the actual cost of loss not capping the cost of the policy, i.e. he shall be completely returned.
• The object of each contract of coverage is to locate the registered in the identical financial situation.
• It would be upon the public policy to provide an insured to make a profit out of his loss or injury.

Utmost good faith

• Since insurance transfers venture from one individual to another, there must be absolute good confidence and determination among the insured and the insurer.
• In a record of insurance, the insured comprehends more about the material matter of the agreement than the insurer. 
• Consequently, he is duty-bound to publish carefully all material matters and nothing should be reserved or covered.
• Any fact is an element, which goes to the root of the contract of insurance and has a bearing on the risk associated.
• It is simply when the insurer understands the entire truth that he is in a situation to judge:  (a) he should receive the risk and (b) what reward he should credit.
• If that held so, the insured might be invited to take about the incident insured upon to get money.