Vikash Kumar What is Insurance Contract? The contracts of insurance are governed by the same general principles of law as are applicable to other contracts. The contract of insurance is a species of general contract governed by the provisions of the Indian Contract Act of 1872. According to Patterson, “Insurance is a contract by which one party, … Read more
What is Life Insurance? Life insurance may be defined as a contract in which the insurer in consideration of a certain premium either in lump sum or other periodical payments, agrees to pay to the assured or to the person for whose benefits the policy is taken, a stated sum of money on the happening … Read more
What is Reinsurance? Reinsurance is the insurance in whole or in part of the risk of liability that an insurer has undertaken under a contract of insurance. It is a way of spreading the excess risk over what the insurer is capable of retaining. This is a way of reducing the net losses he may … Read more
What is the Meaning of Insurance? Insurance is a contract between two parties where one party called ‘the insurer’ undertakes in exchange for a fixed sum called ‘premium’ to pay the other party called ‘the insured’, a fixed amount of money on the happening of a certain event. When such a contract is complete it … Read more
The process of insurance has evolved to protect the interest of the people from uncertainty. The principles of insurance are becoming more and more useful in the present day. Insurance server not only the interest of individuals but also fulfills the needs of individual groups. It also transforms our modern social order. The insurance industry … Read more
What is Insurance Contract? In insurance, the assured should have an interest in the subject matter of insurance whereas a wager stake is the only interest. A contract of insurance is a contract of indemnity. It is the main objective is to make good the loss of the insured, whereas a wager is based on … Read more
Meaning of Insurance The term “insurance” can be defined in both financial and legal terms. The financial definition focuses on an arrangement that redistributes the cost of unexpected losses. That is the collection of a small premium payment from all exposed and distributed to those suffering loss. The legal definition focuses on a contractual arrangement … Read more
What is Holder in Due Course? Section 9 of the Act defines ‘holder in due course’ as any person who (i) for valuable consideration, (ii) becomes the possessor of a negotiable instrument payable to bearer or the indorsee or payee thereof, (iii) before the amount mentioned in the document becomes payable, and (iv) without having … Read more
What is Endorsement? The word ‘endorsement’ in its literal sense means, writing on the back of an instrument. But under the Negotiable Instruments Act, it means, the writing of one’s name on the back of the instrument or any paper attached to it with the intention of transferring the rights therein. Thus, the endorsement is … Read more
What is Negotiable Instruments Act 1881? According to Section 13 (a) of the Act, “Negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer, whether the word “order” or “ bearer” appears on the instrument or not.” In the words of Justice, Willis, “A negotiable instrument is … Read more
