RENUKA MEHRA LECTURER IN B.B.A. GCCBA-42

 Sec. 10 say, “ All agreements are contracts if they are made by free consent of the parties, competent to contract, for a lawful consideration and with a lawful object and which are not hereby declared to be void.”

 Agreement that means Offer and Acceptance  Legal consideration  Competent to make contract  Free consent  Legal object

 Insurable interest  Utmost good faith  Principle of Indemnity  Doctrine of Subrogation  Warranties  Proximate cause  Assignment or transfer of interest  Return of premium

Its is a pecuniary interest. The insured must have an insurable interest in the life for a valid contract.

INSURABLE INTEREST Own life Proof is not requires Proof required Others life -Business relation - Family relations

 The utmost good faith says that both the parties, proposer and insurer, must be of the same mind at the time of contract because only then the risk may be correctly ascertained.  Material Facts  Full and true disclosure  Extent of the duty

Warranties are an integral part of the contract, that is these are the bases of the contract between the proposer and insurer and if any statement, whether material or non material, is untrue the contract shall be null and void and the premium may be forfeited by the insurer.

The efficient or effective cause which causes the loss is called proximate cause. This principle is not applicable on Life of an Individual. It is observed on - Marine Insurance - Fire - Motor and others