Insurance Law Curriculum
Insurance Law (Karnataka State Law
University)
Introduction to Insurance
Insurance is a contract between an individual or entity (the insured) and an
insurance company (the insurer). The insured pays a premium to the insurer,
and in exchange, the insurer agrees to provide financial protection or
compensation in the event of a covered loss or risk. Insurance plays a crucial
role in managing and mitigating various risks that individuals and
businesses may face.
Types of Insurance
There are several types of insurance, including: - Life insurance: Provides
financial protection for the insured's family or beneficiaries in the event of
the insured's death. - Health insurance: Covers the costs of medical
expenses, such as doctor visits, hospital stays, and prescription drugs. -
Property insurance: Protects against losses or damages to personal or
commercial property, such as homes, vehicles, or businesses. - Liability
insurance: Covers the costs of legal liability and damages that the insured
may be responsible for, such as in the case of personal injury or property
damage. - Automobile insurance: Provides coverage for damages or injuries
resulting from car accidents, including liability, collision, and comprehensive
coverage.
Principles of Insurance
Insurance is based on several key principles, including: - Utmost good faith:
Both the insured and the insurer must act in good faith and disclose all
relevant information during the insurance contract. - Insurable interest: The
insured must have a legitimate financial or personal interest in the subject
matter of the insurance policy. - Indemnity: The insurance policy should aim
to restore the insured to the same financial position they were in before the
loss occurred, neither better nor worse. - Subrogation: The insurer may have
the right to recover the amount paid to the insured from a third party
responsible for the loss.
Insurance Contracts
Insurance contracts are legal agreements that outline the terms and
conditions of the insurance policy, including the coverage, exclusions, and
the rights and responsibilities of both the insured and the insurer. These
contracts are subject to various legal principles and regulations, such as the
Insurance Act and the Insurance Regulatory and Development Authority
(IRDA) guidelines.
