What is an insurance contract
Introduction to the insurance contract
We explain here what is the insurance contract and its concept and the pillars of the insurance contract in addition to the characteristics of the insurance contract and the terms of the insurance contract and other information.
And the insurance contract in English: Insurance contract and expresses the agreement and obligations imposed on each of the insurer who is often an insurance company and the insured who is either an individual or a company.
Definition of the insurance contract
The concept of an insurance contract or insurance policy is a contract between the insured and the insured that includes a set of provisions.
According to the contract, the insured is obligated to pay compensation to the insured or the beneficiary, which is the amount of money stipulated in the insurance contract, in return for the insured’s obligation to pay a premium in one installment or in regular installments.
The pillars of the insurance contract
In order for the insurance contract to materialize, three main pillars should be highlighted, as follows:
Insurance contract formula
Drafting the insurance contract, like drafting other contracts, requires affirmation and acceptance from both parties.
The insurance policy expresses the approval of the insured and he is the subscriber complying with what was stated in the contract organized by the insured.
The term of the insurance contract means its image abroad and indicates the will of the parties to the contract to create obligations on them, and these obligations must be clear and specific.
Two parties to the insurance contract
The insurance contract does not occur among individuals naturally. There are conditions, including large capital and guarantees that give confidence and security to those wishing to insure and seek technical and practical foundations upon which insurance depends.
As for the personality of the parties to the contract, they may be natural individuals or companies and institutions expressing legal persons.
Natural individuals must be fully qualified, for example a fool, insane, and non-discriminatory. If they sign insurance contracts, they are completely void.
And it is required that the two contracts meet conditions:
- The state.
- Satisfaction and choice.
- Place of the insurance contract
Insurance contract properties
There are several legal and technical characteristics of the insurance contract, the most notable of which are the following:
- An insurance contract is a consensual contract that is only made with the consent of the contractors.
- An insurance contract is a compensation contract that each party gets paid for and commits to it.
- An insurance contract is a contingent contract through which the contractors, or one of them, does not know how much he takes and gives from the contract as it is determined in the future that something unrealized has happened.
- An insurance contract is a contract binding on both parties to the contract, and it is binding on each party against the other party.
- The insurance contract is a continuous time contract, and it has a period of time within which its terms will be fulfilled.
- An insurance contract is a compliance contract where one of the contracting parties is unique in setting the terms of the contract and defining what it contains so that the other party does not have either acceptance or rejection.
- An insurance contract is a commercial or a civil contract. The characteristics of a contractor may be commercial or civil.
- The insurance contract is a well-intentioned contract, just like other legal contracts.