Slide 3: Insurance Types and Funds Accumulation

Types of Insurance of Persons and Funds Accumulation Operations

• Life assurance covers payments for death, disability, reaching a certain age, or investment vehicle-related life assurance.
• Health insurance covers all types of health-related risks.
• Personal accident insurance associated with life assurance covers personal accidents for policyholders.
• Funds accumulation operations involve forming capital to be paid on a specific date against premiums, without linking to life or death probabilities.

Insurance Contract as a Consensual Contract

• An insurance contract is concluded upon mutual agreement of offer and acceptance.
• A written insurance policy is customary but serves as evidence of the agreement, not a condition for its validity
• Parties may agree that the contract is only valid under specific formal circumstances
• Formal circumstances may include requiring a written or signed agreement by the insured, making it a formal contract
• Validity can be conditional on the payment of the first premium.

Insurance Contract as a Bilateral Contract

• A bilateral contract involves reciprocal obligations between parties.
• Formalization in a written document such as an insurance policy is customary as evidence of the agreement.
• The insured is obligated to pay insurance premiums.
• The insurer is obligated to pay the insurance sum if the insured event occurs.
• Insured's premium payments are typically regular (monthly, quarterly, or annually).
• The insurer's obligation depends on the occurrence of the insured event, making it contingent and uncertain.
• Article 1034 states that the insurer must pay the agreed amount to the insured or beneficiary upon the risk's occurrence or the period's maturity.

Contracts of Adhesion

• A contract of adhesion occurs when the stronger party unilaterally sets the terms, leaving no opportunity for negotiation
• The less powerful party can only accept or reject the contract.
• Insurance contracts are examples of adhesion contracts where the insurer sets the terms, which the public must accept or decline.
• Legislators offer policyholders special protection due to the insurer's stronger position
• The policyholder's acceptance of the insurer's preprinted terms is required.
• Article 248 states that a judge may modify or exempt the adherent from arbitrary conditions in an adhesion contract, and any agreement to the contrary is void.
• Article 266 states that in cases of doubt, construction favors the debtor
• The interpretation of obscure expressions in adhesion contracts must be detrimental to the adhering party.
• Article 1028 lists conditions that are void in an insurance policy.
• Conditions include forfeiture of insurance for breach of laws, unless it's a deliberate felony or misdemeanor
• Another void condition is forfeiture of rights due to delayed notification or document production if the delay has an acceptable excuse
• Printed conditions regarding contract nullity or forfeiture of insured's rights that are not clearly shown
• Arbitration conditions included in the general policy conditions but not as a special agreement
• Arbitrary conditions where their breach has no bearing on the insured event
• The Unified Motor Vehicle Insurance Policy Against Third Party Liability is issued to the Insurance Authority Board of Directors' Decision No. (25) of 2016
• The Unified Motor Vehicle Insurance Policy Against Loss and Damage is issued to the Insurance Authority Board of Directors' Decision No. (25) of 2016

Aleatory Contract

• An aleatory contract contains an element of uncertainty where neither party knows the exact amount they will receive or give at the time of formation.
• Determination hinges on the occurrence of an uncertain event.
• Insurance contracts are contingent because neither insurer nor policyholder can determine exact obligations/benefits when entering the contract.
• The extent of each party's obligation depends on the risk or timing of an occurrence
• The contingent characteristic is fundamental and must be present throughout the contract
• Absence of this contingent nature at the time of the agreement invalidates the insurance contract.

The Insurance Contract as a Temporal or Periodic Contract

• Insurance contracts are temporal, where time is essential, also known as term, periodic, or continuous contracts.
• Obligations are performed over specific periods.
• The Dubai Court of Cassation maintains that insurance contracts are temporal and their termination lacks retroactive effects.