Nature insurance contracts are personal contracts between the insured and the insurer. Non-life insurance covers the insured for financial loss of damage or property loss, not the property itself. If the insured sells the property, the insurance does not go there. The insurance may not be transferred to third parties without the agreement of the insurer. If ownership and liability contracts could be freely awarded, a person with a low risk of covered loss could buy and sell a policy or give it to someone with higher risk, which is not enough to cover the higher risk of loss. For example, a parent could buy car insurance for themselves and then decide to assign the policy to their teenage child, who would normally have to pay a higher rate because teens have a higher accident rate than other groups. Insurance contracts are hazardal. This means that there is an element of coincidence and potential for unequal exchange of securities or counterparties for both parties. A hazardal contract is linked to the survival of an event. As a result, the benefits of an insurance policy may or may not exceed the premiums paid. For example, a person who has disability insurance will collect benefits if they are disabled. However, in the absence of a disability, no benefit is paid. Insurance and gambling contracts are generally considered to be alatoric contracts.
For a treaty to be enforceable, the promises it contains must be supported by quid pro quo. The consideration can be defined as the value given in exchange for the promises sought. In an insurance contract, the applicant`s counterparty is taken into account by the applicant in exchange for the insurer`s promise of performance. It also consists of the application and the initial premium. For this reason, the offer and acceptance of an insurance contract is concluded only when the insurer receives the initial claim and premium. The counterparty clause also contains information such as the timing and amount of premiums paid. Insurance contracts are liability contracts. This means that the contract was prepared by one party (the insurance company) without negotiation between the claimant and the insurer. Indeed, the applicant “respects” the terms of the contract on a “take it or leave it” basis if it is accepted. . . .