Insurance contract is between two parties containing some lawful contents which must be present and agreed upon by both parties.
Proposal in insurance means a request, from the proposer to the insurer, for giving protection against a risk.
Insurance contract may be divided into two forms—first life insurance contract and second contract of indemnity.
Insurers do issue policies with regard to all types of insurance contracts. A policy as such is not the contract in itself, it is simply an evidence to the contract which already exists.
Insurance is defined as a form of risk management primarily used to hedge against the risk of potential financial loss.
The main function of insurance is to provides certainty of payment at the uncertainty of loss as it spreads the risk over a number of persons who are insured against the risk.
Marine insurance defined as a contract between insurer and insured whereby insurer undertakes to indemnify marine losses incident to marine adventure.
Utmost Good Faith (Uberrima Fides) states that both parties in insurance contract must fully disclose all material facts of risk voluntarily.
Insurance cover note is a document used to provide evidence of insurance if policy documents are not immediately available.
There are various clauses which are suitably inserted according to the nature and type of policies; hull, cargo and freight policies have different standard clauses.