General insurance What is the Nature of insurance contract?

Mataracy

VIP Contributor
A contract is a legal agreement i.e. an agreement that is enforceable at law between two parties.
Insurance can be defined as a contract between two parties whereby the one called insurer for a consideration (premium) promised to indemnify or compensate the other called the insured in event of the happening of the insured peril.

A contract is an agreement enforceable at law made between two or more parties by which rights and obligations are created.
The rights and obligations of the parties to an insurance agreement are determined largely by reference to the general laws which govern contracts. The agreement by which insurance is effected is a contract in which the insurer, in consideration of the payment of a specified sum sum by the insured, agrees to make good the losses suffered through the happening of a designated unfavourable contingency.
Since insurance is a legally enforceable contract, each party to the contract- the insurer and the the insured must conduct themselves according to the terms and conditions guiding the contract. Failure by either party to observe the provisions of the contracts confer on the other part the right to seek legal redress for compensation.
What is your take on this?
 

Mandy96

Valued Contributor
Well insurance contract is the agreement held between the insurer and the insured. If you happen to be a novice in the business, you might need to reach out to people that knows very much about it in order to put you through on how to really go about it without having to through some unnecessary stress
 
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Phabbyfundz

Valued Contributor
You have been really at conveying your points in this article, insurance contracts are as important as the insurance policies themselves. And to enjoy the numerous benefit the policy holder gains from purchasing an insurance policy you have to be conversant with the contract of the insurance policy and correctly stated by the insurer.
 
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Chibson

VIP Contributor
Insurance contracts is the most important part of it because it is where an agreement between the insurer and the company is written. Such contracts should be able to bear the name of the insurer and the state specifically the terms and conditions of that particular insurance company. It should be comprehensive enough and very much understandable.
 
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Wisdom01

VIP Contributor
I think insurance contract is more of a legal agreement between the insurance company and the insurer and the after the agreement have been sealed both parties would have to follow every thing stated and if there is any form of breach , the person might be charged to court I think
 
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