ESENSIL ELEMENTS OF INSURANCE CONTRACT
Although the contract of insurance has a number of distinctive features, but it should meet the form and general conditions established by law for each contract.
1. Agreement (Offer and acceptance)
The agreement consists of a quote on doing by a party and received by the second party. In all kinds of insurance, types of insurance offer the most important is the application of a candidate who was borne. This application can be orally. For example a person who decides about to insure his home against loss due to fires can call an insurance agent. Other contacts of these people with these agents is acceptance policy and premium account. Thus meaning has happened and offer acceptance or agreement between the parties on the responsibility with an insurance company that is because insurance agents had been given authority by the insurance company.
2. the competent parties
To legitimately an insurance contract as well as any other contract, he was to be made by the parties the competent (able). There are three groups of people who are considered not competent children who are not yet adults, people who are mentally incompetent (capable of), and the women's husband.
Age of majority is not the same in every country. In the New York age that date was 14 and a half years. Someone who has not formally declared sane is not competent do the deeds of the law and not being able to make a valid insurance contract.
3. Objects of legitimate or Legal
A contract of insurance is usually considered to be contrary to the wisdom of State and thus not legally is if the party that incurred had no interest which can be insured in insured can object to that. If there is no interest which can be insured then the contract was gambling.
Another example of a contract contrary to the wisdom of the State is a contract made by the enemy.
Article 268 of the book law of Commerce saying that that can be the object of insurance is all interests:
a) can be assessed with some money.
b) can suffer all kinds of danger.
c) is not prohibited by law.
4. Rewards (Consideration)
A contract is only valid if each party gives something value or carry obligations towards the other party. Insurance contract it is often stated that the reward of those who are covered are "provisions and ordinances which the here and certain premium". This does not mean that the premium must be paid before the insurance policy is valid. In fact many property insurance policy already in effect prior to receipt of the payment of a premium. The promise to pay is rewarded (consideration). Otherwise on life insurance, the first premium must be paid before the enactment of the policy.
Insurance companies also give rewards in the form of the promise will make payments if certain events occur.
