Is fire insurance a contingent contract?

Therefore all insurances like Fire insurance, Marine insurance, and Life insurance are contingent contracts where the insured pays a certain sum of only, i.e premium, to the insurer who promises to take risk against the happening or non-happening of a future uncertain event.

Is fire insurance is a contract of indemnity?

Every contract of marine or fire insurance is a contract of indemnity and of indemnity only, the meaning of which is that the assured in case of a loss is to receive a full indemnity, but is never to receive more.

Is insurance contract is a contingent contract?

For example, in a life insurance contract, the insurer pays a certain amount if the insured dies under certain conditions. The insurer is not called into action until the event of the death of the insured happens. This is a contingent contract. This is a contingent contract.

What is contract of indemnity under Indian contract Act?

Section 124 of the Indian Contract Act’1872 defines Contract of Indemnity as a contract by which one party guarantees to save the other person from loss caused to him by the action of the guarantor himself, or by the action of any other person.

What is indemnity contract in insurance?

Indemnity Contract — an agreement to pay on behalf of another party under specified circumstances. An insurance policy is an indemnity contract.

What are indemnity contracts?

An indemnity agreement is a contract that protect one party of a transaction from the risks or liabilities created by the other party of the transaction. Hold harmless agreement, no-fault agreement, release of liability, or waiver of liability are other terms for an indemnity agreement.‌

What is the fire insurance policy?

​Fire insurance policy is basically a contract between the buyer and the insurer, where the insurer guarantees to pay for the damage or loss caused to the property of the insurer for a particular time period. Fire insurance coverage includes mishaps caused due to accidental fire, lightning, implosion or explosion, etc.

How indemnity is provided in fire insurance?

Fire insurance is a contract under which the insurer in return for a consideration (premium) agrees to indemnify the insured for the financial loss which the latter may suffer due to destruction of or damage to property or goods, caused by fire, during a specified period.

Is contingent contract valid in India?

‘ A contingent contract is to do or abstain from doing anything if an uncertain future event does not happen. The contract, however, can be enforced by law until the event becomes impossible. If the event takes place, then the contingent contract is void.

What is contract contingent?

Once your home is under contract, but some contingencies need to be met, your property is considered contingent. A contingent contract means that some condition hasn’t yet been met, and both parties have not agreed to move forward with executing the deal as planned.

Which is an example of contract of indemnity?

To indemnify something basically means to make good a loss. In other words, it means that one party will compensate the other in case it suffers some losses. For example, A promises to deliver certain goods to B for Rs. 2,000 every month.

Which is not a contract of indemnity?

Personal Accident is not a contract of indemnity. Type of insurance cover (such as property insurance, but not personal accident insurance) that only restores the insured to his or her original financial position. The insured cannot gain from a contract of indemnity.

What is contract of Indemnity under Indian Contract Act?

Indian Contract Act, as defined in section 124 states that “A contract by which one party promises to save the other from loss caused to him by the contract of the promisor himself, or by the conduct of any other person, is called a “contract of indemnity”.

Is fire insurance a contingent contract under Section 124?

So fire or life insurance contract doesn’t come under the ambit of section 124, though they are valid and shall come under the contingent contract. But the motor or marine insurance contracts are considered valid indemnity contract under section 124 of the Act provided the loss arise out of the act of human agency.

Is indindemnity a contingent contract?

Indemnity is a type of contingent contract. It also depends on happening of events. The contract of insurance is also a contract that is contingent to the happening of an event. Insurance is a contingent contract but is not a wager. There is a huge difference between the contract of wager and a contingent contract.

Is contract of indemnity valid under ICA?

The contract of indemnity should also be a valid contract according to the Indian Contract Act 1872 and all the sections of ICA are applicable on it. The promisee or the indemnified holds certain rights against the indemnifier, when he has acted in the scope of his authority.