Insurance law

Rook : Avtar
Singh
Sreenivasan
KWS Sharona
KV M Murli

Parties in insurance contract -

1) Insurer I Asrwur → uuho

gives insurance ( combing

2) Insured I Assumed → to whom it is

given .

Cues

A two
agreement enforced by
law
, panties ,
cancerous

idema ( with consideration ) is called as a contract .

C
meeting of mind , mutual consent)
The essentials contract insurance contract
of a are same as in a .

offer Acceptance consideration

competency free consent lawful object lawful
* ,
, , , , ,

consideration .

IRDA Insurance
Regulatory Development Authority of India
→

where insurance co
gets registered for that specific insurance
.
.

Two
tykes of insurance :

1) creneral / Now

a) life Tusurauce

contract
Principles of
:
suaunauce
-

insurable
Principle of utmost
goodfaith ,
interest ,
subrogation ,

contribution
indemnity , proximo , ,
loss minimisation .
 insurance → take insurance
Double
policy from
can more than one .

Reinsurance → Insurance womb .

take risk with other insurance

company giant
contract
C one ) -
A blew them where rests is
transferred
another
from one to re insurance
ulenfsauy
-

:
 Nature & kinds of Insurance

History
-

The scope of insurance has increased Now there is a evite when

go
.
we .

Bancassurauce → Bank & Insurance . Bank as middle agent eg. -

safe deposits .

Risk must be uncertain .

Traditionally → Merchants
transporting approaches tender
gives 1000 Rs &

gives evolve extra 500 Rs

saying that if goods were
damaged then cancel

loan Cuiaiue loan) If linda accepts the offer then enter

my off my they
.

into contract of insurance .

eg a → Monarch gets money from public 4 when

public is in need then

double the amount of what given in New Year

gives
.

LIC absorbed - : now Crout owned 1956

-

54 Tedious

}
I -

ME
16 won tedium eoupaius
societies
75 foueuidut

biennial Insurance Business → mu Nationalised

@ life insurance)
on
9 Health
 General Tuswource
Corporation of India → 1956
got monopoly
oreeural Insurance Co. Ltd
into
107 almeelgatud companies
4 →
Now main " "

est =3 ooeluiteel " " 1074

197--2
-

→
united Shelia " "

Till late 1990

* Later on because of advancement then

foiivatireeteieu happened then
private
companies retire allowed to commence business in thiseuauce -

Thus 4

were deluded from Oric 4 were now independent .

Protect int
of policyholder need
for

}
Economic
reuetopmcnt Nationalization

Avoid cutthroat competition

Abolish malpractices
spread awareness in insurance sector

oriented life Into .

an
F Insurance Britishers in India in Calcutta
company by 1810
.

But premium M to Indian holder .

19h → Indian life Insurance

Activity est .

u⑧ legislation
1928 →
Motian Insurance to
-

Act

1930 →
louipreheusiue legislation → Marrano Act
consolidate all about)
Ñteryofouneeal2usurauce2ndia
sea routes much preferred Industrial
during
mure Reno .

in it
century
.

East India
company came .
Toeital Seminara
Company ltd in

1850 Calcutta bt③

1850 → council
for sound insurance practice
1956 - ordiauce passed to Nationalized
companies into
107
altngeunakd Creamed Jusurauce y .

In laces → R N -
Malhotra corououroe) committee est to -

insurance
carryout reforms
in sector -

d
later on private allowed to do business
companies were
IRDA Act 1999 was enacted in
April oooo .

FDI → 204 limited 2000 but Ato 90% latte on

,
.

74% current rate .

24 IC →
ZCZCZ
,
HDFC ,
Carreira , etc .
Max
,
Kotak Mahi
dra
25 GIC Phone
Pay Echo oovilal Vnitid
→
a ,
Malia
,

Rukhi →

Beyeig ,
ICHI bombard ,
Sriram , Bharatiya
 Contract of Reisenauer :

agreement whereby insurer

Def is an one
party called the under
-

, ,

takes return for consideration kremlin

,
in an
agreed called the ,
to

pay to the other

party ,
namely the insured, a sum
of money
or its equivalent in kind ,
upon tho occurrence
of a specified
levent
resulting in a loss to him .

Essentials 1 Nature

①
Application form →
follow principle of utmost
Croadfaitk
④ Proposal form
⑧ consideration

①
competency to contract
⑧ Consensus idem → same mind in same sense consent free
, ,

Features of Insurance contract -

① An
aleatory contract when
gets more value than in
-

contract mentioned .

③ Adhesion aunt of freemium tour & conditions eto

eg
→ -

, ,

insurer leave it
done
by know insured decides to take or .
 Thseored cannot
negotiate ,
revise or delete a contract

& its conditions .

'

③
Executory contract fracas goes on obligation party
'
is
of
-

unfulfilled
① Oui lateral

⑤ Conditioned contract

⑥ Personal contract

12/02/22

wagering contract & Insurance contract →

⑤
④
① The parties the insured has insurable ① Parties doaat have invoke interest
any insurance then
an .

&
insurance holds Insurable int means
-

if beys fire
A

interest
-

the arises
of loss which insured is likely
.

event
to be exposed
by the nahboning of
against .

A has insurable int thus insurance

buy
.
can .

①Neither wins nor tosses ② Loss can occur .

③scientific bacterial calculation of risk ③ Craiuble wheat scientific bacterial

any
Actuarial means who has knowledge of insurance
calculation of risk .

expert premium
,
calculation
① Benefit for public ④ Not
purpose
any useful
seem
.

⑤ valid contract ⑤ void

by law .

⑥ Both are interested in subject matter

3C csc

① Tasered 4 Tonsure ① 3 panties → Poiucifle Relator Surety, , or .

Pmicinpb liability 11 Slicisdity

⑥ Can be cancelled .

② Non
-
cancellable

③ There is risk
of transfer
.

③ No Transfer of disk .
Just a
legal
formal contract

cannot estimated
generally
be
⑥ Poeenuiun is based on lfuanturnofhss ⑤ loss .

insured
property being
• .

contract
Insurance contract contingent
contract ① To do ounot itthe
① Tl is a
contingent something
.

event , rotational happens or not .

 R
Usha sub-national United India
ltd v.
fusenanucoeuf .
ltd
. roots

exception clause -

theft
Facts there 410 people
cyclone convicted
theft
-
was a

Thus insured informed the inseam because

of risk
contented into loss .

The insurer liable to to insured

was
pay
baby Riot ,
causing damage to forofety .

② case : 2008

exception → fire
Inferior of insurer .

Because of strike 4 lookout of

labour .

③ case : Tank Pump

liability company
V.
Wayne &
employers
Assurance Corporation City
Proximately
Einem
of Engineers to install new equipment in old mill .

they took a public liability policy by

insurer .
 insured
Wayne →

condition of
Policyinsuredexception → nature &
goods supplied
by
.

accident material ② A
An took
place ①
dangerous
-

switch on
negligence by worker .

① cause
exception .

② cause was insured farellt

This held that
fsroxiueeete cause was intended
.

← -

imf cause →
defective goods given
-

Thus insures not liable -

at depends on the cause which is more

iueforteeut .

af will
both cause
Imf then beetle be taken into
.

consideration .

① Principle of utmost Good

faith -

cases .
 LIL v .

Shakuntala Case

insured
The did not disclose the
fact of her krokbm of indigestion .

Thus insurance
the
refused .

Court said this is not a material

fact .
Thus insured had

to the clavinet aint

per insurance
pay as
policy
.

Case : Rohini 1966

tsububuy hatband Reburied

Bulguleuy insurance taken .
In 1974

indemnity .
But was
refused bz there was a
kulgary in her

brother 's house same

building in 1949 .

said not a
count this is mutinied fact . thus insurance

claimed .

Case : London Assurance U .

Mansell 1879

Thru
life insurance policy any proposal
in → has
was a
ques

already made fos insurance ? if Yas which co .

? Acceptance ?

declined ? At Poeeuuim or discount ?

Ausmus → Taken from 2

companies 2=60000 At normal

premium .
supervised Fact →
Proposal had been declined .

This was observed as

failure to goodfaith .

*
Pouirciple of Indemnity is not
applicable to
life insurance
contract as
life cannot be calculated -

Nayak
case : Mithra dal V. LIC so 814

sec 38 of V3 Act
Mithulal took insurance
of F 250001 -

for life of Mahajan Deolal

The insurance clavinet

insurance
amount
company oufusid buy
to the as

as : material facts more not disclosed -

Had consulted a medical practitioner for last Said No

years ?
g-

but hid & that

Mahajan was
suffering from diarrhea &
panting
from exertion .
Case : LIC U
.
Kansa ban Strait 2011

In favor of insured .
court said when @
age oflsyss
there
was blood found in urine is an
fact & not
old a

material fact bz of which led to

kidney krobleen 4
death
of insured Thames bound to the
was
buy legal
.

heirs
of insured

Another case : Maura said No to

smoking 4 drinking
where outport held that he was an alcoholic .

count said

favor of insures be though it a insurance contract

is

but disclosed facts

though
& material
facts wire severe

Marianrtsed V. SBI life Insurance 2011

lane :

sufferedfrom mental disorders but didnot know .

Thus

court said that the visual followed the principle of

utmost
goiedfeeith
.

Case ! Reunion Ltd U .

Bone
There was a motor
lorry 4
said to
insurance was

unite the
taken for
address
this .
Ten the contract there

where the motor was parked &

company curate as

stated above residence of company belt this was

not true the motor was kept in a remote faun .

This done mistake The court

was
by gave
.

jeidgeuut in favor of insurer

-
.
Bz the form filled
insured
by was the main
object of the policy .

claim
③ Insurable Interest Poeineipk →
→ exception
Preserving a
fsautvinlas thing .

B tenant
Eg A -
oeuno

b hers
inseuaucebk int bz he can suffer
financial loss incase
.

of fire .

Thus
fire contract could initiated
insurance even
though
B is not the real ovens .

my friend
Me
elf 2 →

lining in Kothrud & B in Kareem .

I cannot take fire insurance for B house bz no insurable

interest .
This is done to avoid unheccessities .

A made eisemann later

eeg 3 → a
fire policy
4 on seed to

But A will not insurance claim .hu

B. get money
A new has no insurable interest .

life Insurance & Insurable interest -

when thou is miserable interest - :

① Blood relation Husband wife not

fiancee who
'
-
& are
,

yet to marry
and after diuouce

Father -

children

② contractual relationships crudities & Debtor

→
upto a

particular interest .

Trustee -
co -
trustee
employee employers
,
- .

: This is not limited different types of parties

-

to .

③
conformity to social
religious background based on
of good
ueuseeiae
, justice &
equity iheueugh judge a .
Insurable interest & Marine Insurance -

Meanie Insurance Act 1968 .

See 1- to 17 → oausurabk interest

wife Fiore Manni

must be thou @ insetptueir Must & be there attime

Magnet ofcon
but not be also at claim tract but need to be there
mayor may
this at tune
of claim .
tire @ twin
of
elainu.CI

* All the
legal nights have to be
performed then only insurable

involved
eeitoust is complete & is
right .

Marama V Northern Thsurauce

company
-

Machina took foie insurance policy foe ltnikes & was

creditor also
the sole shareholder of a company & .

insurable interest
Marama does not have on the
subject
mates i. e. tribes .

what he should
He did not get the
policy claim
have taken in
company
done Then
name
of
.

nutjala
 v.
ueriffith Flemming
husband a
wife took
joint policy wife committed
.

suicide & husband claimed the aint which the

insurance
But
company dejected
court heeled
infauou of husband be Hus

has insurable interest his

on
wife .

Tomlinson Handers Ltd . v.

Hepburn
buried
A a reveries but
gods were stolen by his
claim vehicle insurance
own
staff & came
for the

insurable eeiloust not

ro
dejected be carries has
'

believes .

Court said
yes
true so when carries
gets iuseoace
claim
policy then some have to be
given to

owner .
 ③
Principle of 2ndemm.ly
-

wife insurance contract not

indemnity
is an

contract .

* To claim that much amount which there is loss .

* Applicable to non
-

life insurance
* To save the loos .

⑨
Peeiucipb of subrogation substitution

Cpaut & contribution

colorway parcel) to
indemnity
* &

a marine
*
Applied to fire .

*
Eg A 's house
→
damaged calls lirsureeuce company
for indemnity & clavius to neighbour B because of whom
1-
suffered damage .
due to
negligence of B .

Now count will decide A The claim which

case
of & B.

B will
give ,
be
gain to Tasmania
company
not to A
Because will not extra compensation Tasman
you get
.

company will
give the whole claim .
* whine insurer to the insured the value of goods
pays
lost due to
negligence of third party the nights &
a ,

remedies of insured
against such themed panty stand
transferred to and vested in the insurer . such equitable
assignment of nights & remedies of insured in favor

of insurer
, implied in contract of
indemnity is

known as
salsrogatuein
.

⑤
Pvuivcifde of contribution -

Eg → Tusenauce
policy taken by 2 companies .

of Ieeurieeut
Thus at the twin Then one
company
.

aint on can contribute

can
pay the whole a
.

but the altus can claim the

half amount from the
company who paid in full .

*
of the insured takes out no
of policies from different
.

companies bitter loss occurs ,

the tonsures who
pays
in
full can call
upon the other insurers to contribute
nate their
equally on
bly according to
oeesfactuie assurances
 case : Castillian v. Paustian
Paustian was oeuvres of a house 4 wanted to sell & Mr -
Ravine

accepted the
offer 4
deposited a some to Preston .
teeth on

house insurance
caught fire .
Preston calls the
policyhis
-

later that he had sold

company got
on to know

house in part Thus the ohenid

money company back
.

to
pay indemnity
Polestar is
& demanded their
money
because
getting profit .

The want ruled that insurer liable to Preston

pay
is .

back
as
already paid cannot
offer .
later on when

Raintree got to know 4 sued Polestar because house

foiece is also not reduced & now claims the Pmu

many
oud .

court muted in
favor of Preston bv entire sale transaction
is not yet settled
only Paustian deposit was
gain by Ms Rainmen
. .

4 Ravines
Presenting judge says having are

trustee must look

beneficiary relationship and
truster &

after the
beneficiary
.

see 49
of Transfer of Poeofeuty Aet → when immovable
 and if
foeofeuty is
transferredby money property is
insured Then insurance must be
money givin to
.

buyer for reinstating the property

which is the
decoding opinion this in rose .

⑥ Puuiatpk of loss minimisation

Rautio must towards
duty
each other
follow this .

g-
Rf fire occur @ A 's house he must take
necessary
steps to
prevent the loss & minimise the
damage
on tho
subject matter .

⑦ Poreircipk of causa Poeoxima

Focus on the foroximate Greenest) cause I not the oeeenolt

There insured petrel

cause .
are
excepted
+
&
to
loss .

winner caused insures liable to

by insured Pay
* Understand the
thorough reading
contract .
case : Hamilton ,
Frasier & to .
Ur Panelorff 4 co .

Cargo insurance base of

policy & due to rats the

ship was punchline -

cargo was
damaged due to

mates
informed to
insurance
ouvflow of sea .

This was

got rejected bar

company
& rats caused loss Whio
is not under our contract .

Court thru
for loss ① Rats
says
→
are 2 causes

punch weed coats under

② Sea
damaged ethics was

wasseaueatni.ie
proxies
the contract .

Thus
smallest latke .

This in insured
favor of .

TankHunk V
case :
Wayne Co
Employee Assurance
-
-

1974
DoaeAlready@
- - .
-

Negligence as the proximate cause .

 Indian Insurance law in oeeneral

① The Insurance Act 1938

Features
.

① standardised freemium certified by

Policy & actuaries .

1950 Amendment → d international companies

Applicable -
to all insurance L
, M ,
F .

A public
company
on a
society on a
body corporate can

start insurance business in India .

* who become insurance

ran a
company
-

insurance insurance into

Re
company → one
company enters
-

contact wl another insurance

company
.

cooperative society