General insurance What is the meaning of Offer and Acceptance in Insurance?

[Mataracy]

It is a prerequisite of every insurance contract that there must be a consensus and idem i.e. a meeting of the minds or mutual agreement between the insurer and the insured.
This is only possible when there is an offer by one part and such an offer is accepted as made by the other party. Without a consensus ad idem(agreement between two or more people) there is no valid insurance contract.

The offer to take out an insurance policy is made by the prospective insured by orally or in writing. In most cases, it is made by the prospective insured by means of completing a proposal form in which he furnishes the insurer with the requisite particulars of the risk to be insured against.
If this is accepted unconditionally , then there is a meeting of the mind and therefore. A binding contract. If on the other hand, the insurer accepts the prospective insured's application but with a provision that the latter pays a specified premium, the there is no valid acceptance. At most the insurer has made a counter - offer which becomes binding on both parties only if and when the prospective insured accepts it by paying the specified premium.

What is the meaning of offer and acceptance in Insurance?

 

[Mandy96]

I think offer is the policy plan that the agency is trying to let you purchase maybe after you explain what you needed and they happen to choose the right one for you. About the acceptance, it’s the process that tells the insured that the contact is on, sometimes it might attract some fees in some certain companies

 

[Phabbyfundz]

This is a really enlightening topic of discussion and I would like to commend you on how you have taken time to vividly explain their various meaning and prospect as correctly stated at the beginning of this article. We need information and enlightenment on the really broad and important topic of insurance.