THE CHARACTERISTICS OF INSURANCE CONTRACT
There are some specific characteristics in the insurance contract.
The contract of chancy (Aleatory Contract)
Most contracts are commutative meaning each party submit the goods or services that are considered of equal value. However, the insurance contract is aleatory mean parties who make contracts realized that the amount of money that will be submitted by each of the parties will not be the same.
In the insurance policy, the amount of premium submit are covered. If he were to suffer a loss, he may receive a sum of money which is much greater than the premiums paid to the insurance company. And if he will not accept anything from insurance companies. For insurance companies, there is a chance he will have to carry out a much larger payments than on the premium received or (more likely) he will not be paid at all. The traits typical of aleatory contract is chancy (chance).
All gambling is chancy (aleatory) but not all of the aleatory contract is gambling. Insurance isn't gambling. Insurance is not meant profit offers the possibility of gainful to the covered but just the possibility to obtain reimbursement from the possibility of loss. Furthermore insurance reduces the risk, while gambling poses risks.
A contract of Adhesion
The opposite of contract bargaining, the contract of insurance is usually a contract of adhesion. His Covenant is generally made by the lawyers and other representatives of insurance companies, or perhaps by the representatives of the Government. These contracts are usually awarded to candidates that are covered in the "accept or deny", prospective buyers of insurance could not file a proposal, so that the insurance company change a bit this section or replace a Word.
These traits actually benefit the parties to the paid if the contract was being litigated Court. The Court determined that because the insurance companies that make up the contract it, then any fuzziness of meaning (sense = ambiguity, ambiguity) in this contract should be should be paraphrased a profitable party incurred against insurance companies.
Unilateral Contract (Unilaterally)
The contract can be unilaterally or bilaterally. The exchange of a promise with a promise is bilateral (both sides), while the exchange of an action with a promise is unilaterally (unilateral). The insurance contract is a contract unilaterally. This means that if the parties to the paid premium already paid, only one side open to legal appointments apply to carry out anything next. Insurance company promising implementation (performance).
Conditional Contract (Conditionals)
The insurance contract is a contract is conditional. It is true that the contract has been completely fulfilled by the parties to the paid premium and give with the living insurance company are obliged to fulfill his promise. However, there is no longer the essential requirements that must be met at parties the responsibility if he does not want to acquire a replacement over the losses. The difference between a promise (promise) condition (condition) is that the promises can be enforced legally into force, while the terms of the (condition) do not. influence of a condition is not allowed is the party that incurred no losses from the insurance company's replacement.
For example, in a contract of fire insurance, the insurance company
promises to replace losses suffered party incurred because of the fires.
The party that incurred need to meet some terms related to the filing of proof of loss due to a fire. However, he legally he is legally not mandatory filing proof of loss required by the terms of it. He just needs to address if it wants to gain that indemnities. Instead, the company fire insurance can be forced by law to fulfill his promise to pay compensation, if the parties to the paid has fulfilled all the requirements that are listed in the contract.
The party that incurred no compulsory continued payment of the official if he wanted to stop that policy. He is only obliged to pay premiums for the protection which had been received before the date of termination.
