Objectives :
The insurance idea is an old-institution of transactional trade. The main objective of every
insurance contract is to give financial security and protection to the insured from any future
uncertainties. Hence, insurance is considered as an inevitable component of economic
development. Even from olden days merchants who made great adventures, gave money by way
of consideration to other persons who made assurance, against loss of their goods, merchandise
ships and things adventured. The rates of money consideration were mutually agreed upon. Such
an arrangement enabled other merchants more willingly and more freely to embark upon further
trading adventures. The operational framework of insurance idea is provided by the general
principles of contract. The insurance policy, being a contract, is subject to all the judicial
interpretative techniques of rules of interpretation as propounded by the judiciary. Besides, the
insurance idea has a compensatory justice component. This course is designed to acquaint the
students with the conceptual and operational parameters of insurance law in the light of various
legislations regulating insurance sector in India.
Course contents:
UNIT - I
Introduction: Nature – Definition – History of Insurance – History and development of Insurance in India,
Contract of Insurance: Classification of contract of Insurance: (Life insurance – General insurance and Re-insurance – A brief overview),
Nature of Insurance Contract, Overview of Insurance laws in India: Insurance Act, 1938 – Insurance Regulatory and Development Authority
Act, 1999: Its role and functions.
UNIT -II
Principles of Insurance law: Principles of good faith (uberrimae fidei)
Non disclosure Misrepresentation in Insurance Contract, Insurable Interest
Principle of Indemnity – Difference between Indemnity and Guarantee
Principle of Contribution
Principle of Subrogation
Principle of Loss Minimization,
The risk – Meaning and scope of risk, Causa Proxima,
Premium: Definition – Method of payment – Days of grace – Forfeiture – Return of premium, Assignment of the subject matter.
UNIT -III
Life Insurance: Nature and scope of Life Insurance, Kinds of Life Insurance, The policy and formation of a Life Insurance contract.
Event insured against Life Insurance contract,
Circumstance affecting the risk, Amount recoverable under the Life Policy – Persons entitled to payment – Settlement of claim and payment of money
Life Insurance Corporation Act, 1956 (overview)
General Insurance Business (Nationalization) Act, 1972 (overview)
Health and Medical Insurance, The Motor Vehicles Act, 1988 – Sec. (140-176)
Nature and scope Absolute or no fault liabilities
Third party or compulsory insurance of motors vehicles
Claims Tribunal
Legal aspects of Motor Insurance.
UNIT -IV
Fire Insurance: Nature and scope of Fire Insurance – Basic Principles – Conditions & Warranties Right & Duties of Parties Claims – Some Legal Aspects,
Introduction to Agriculture Insurance
History of Crop Insurance in India, Crop Insurance Underwriting, Claims, Problems associated with Crop Insurance
Cattle Insurance in India
Micro Insurance
Public Liability Insurance: Public Liability Insurance Act, 1991 (overview) – Claims, Consumer courts and Insurance Ombudsman.
UNIT -V
Marine Insurance: Nature and Scope – Classification of Marine policies
Insurable interest Insurable values – Marine Insurance and policy – Conditions and express Warranties
Voyage Deviation – Perils of sea – Loss – Kinds of Loss
The Marine Insurance Act, 1963 (Sections 1 to 91).
Prescribed Books:
Murthy K.S.N and K. V. S. Sharma Nexis,2009)
Modern Law of Insurance in India, (New Delhi:Lexis
Srinivasan, M.N., Principles of Insurance Law, 7 Edition, (Nagpur: Wadhwa and Co., 2004).
Reference Books:
Singh,Avtar, Law of Insurance, (Jain Book Agency,2004)
Birds, John, Bird’s Modern Insurance Law,g’ Edition, (London: Sweet & Maxwell, 1997)
W.Patterson, Edwen, Cases and Materials on Law of Insurance (New York: Foundation Press, 1955)
Insurance Act, 1938.
The Marine Insurance Act, 1963.
General Insurance (Business) (Nationalization) Act, 1972.
The Life Insurance Corporation Act, 1956.
Motor Vehicle Act, 1988.