Insurance Contract Elements PDF

ELEMENTS OF INSURANCE CONTRACT 1- CONSENT 2- SUBJECT MATTER 3- CAUSE INSURANCE CONTRACT Takaful Insurance: A collective contractual scheme intended to achieve solidarity and cooperation among a group of contributors to address certain risks, where each one pays an amount of money call...

ELEMENTS OF INSURANCE CONTRACT 1- CONSENT 2- SUBJECT MATTER 3- CAUSE INSURANCE CONTRACT Takaful Insurance: A collective contractual scheme intended to achieve solidarity and cooperation among a group of contributors to address certain risks, where each one pays an amount of money called "contribution" to be deposited in a Takaful insurance fund through which compensation is to be paid to eligible persons when a risk is sustained. INSURANCE CONTRACT Parties to the Insurance Contract The parties to an insurance contract are the insurer—usually an insurance company, though it may also be a mutual insurance association—and the insured, who contracts with the company or association to insure themselves against a specific risk INSURANCE CONTRACT Parties to the Insurance Contract First: The Insurer The insurer, as a party to the insurance contract, is any entity that assumes the liability for a risk (the occurrence) that may affect another in exchange for a sum of money (the premium). The insurer often takes the form of a joint-stock company, which possesses an independent legal personality separate from its shareholders and insured parties. The company collects premiums in return for covering the insured risk and fulfilling its obligation to pay the insurance amount in the event the risk materializes. INSURANCE CONTRACT Parties to the Insurance Contract First: The Insurer The insurer may take the form of a mutual or cooperative insurance association, which operates on a not-for-profit basis. In such associations, the members combine the roles of both insurer and insured, insuring each other collectively. INSURANCE CONTRACT Parties to the Insurance Contract First: The Insurer Insurance intermediaries are individuals who represent the insurer (insurance company) and operate widely to offer insurance to the public and secure their acceptance of various insurance policies. The extent of an intermediary's authority to represent the insurer depends on the level of authority granted to them to conclude insurance contracts. INSURANCE CONTRACT Parties to the Insurance Contract Second: The Insured A Person that enters into an insurance policy with the Insurance Company for their benefit or the benefit of the named Insured or the Beneficiary. INSURANCE CONTRACT Parties to the Insurance Contract Second: The Insured (named Insured) The default assumption is that the policyholder (insured) is also the insured party(named Insured) and the beneficiary unless evidence suggests otherwise, such as when the contract specifies that the insured party is someone else or the beneficiary is a different individual. INSURANCE CONTRACT Parties to the Insurance Contract Second: The Insured The roles of policyholder(insured) and insured party(named insured) may coincide in one person while the role of beneficiary is assigned to someone else. The person on whom the insured event (such as death) occurs is both the policyholder and the insured party, meaning they are the one who entered into the insurance contract and the one upon whom the insured risk is contingent. The beneficiary, however, could be a third party, such as their spouse or children, as specified in the contract under the principle of third-party beneficiary rights. INSURANCE CONTRACT Parties to the Insurance Contract Second: The Insured A single individual may serve as both the policyholder(insured) and the beneficiary, while the insured party(named insured) is someone else For instance, if a creditor insures the life of their debtor, the creditor in this case is the policyholder, as they are the one entering into the insurance contract and assuming the obligations arising from it. The creditor also becomes the beneficiary, as they are entitled to receive the insurance payout upon the occurrence of the insured event, which is the debtor's death. Meanwhile, the insured party is the debtor, as the insurance pertains to their life..