CONTRACT OF INSURANCE

          HISTORY OF INSURANCE
   
    Insurance has been in existence before the advent of colonialism.
     The brand of Royal Exchange Assurance in Nigeria,started operation in 1921. The first indigenous company was established in 1950. By the time Nigeria gained independence,the number of companies has however risen to about 19.


     In 1969,National Insurance Corporation of Nigeria was established by Decree 22,to transact insurance business.

                    INTRODUCTION

     A contract of insurance is one,whereby a person (insurer),agrees in consideration of money paid to him (premium), by another person( assured).

             PRINCIPLE OF RISK

      The major principle underlying insurance of risk,under this principle, the amount of premium depends on the probability of risk. The insurer will pay the amount of loss without any difficulty.

       ESSENTIALS OF A VALID CONTRACT

1. There must be an agreement between the insured and the insurance company.
2. There is the legality of object.
3. There must be the actual intention to create legal relation

       INSURANCE AND ASSURANCE

 INSURANCE: This is defined as a contract, under which an insurer deals with the insured, in order to compensate him against any detrimental effect,which he may suffer after payment of a premium (money paid after the agreement).

Examples;
1. Burglary
2. Marine
3. Accident.

  ASSURANCE: This is defined as the provision or cover against an event which it occurrence is certain.

   INDEMNITY AND NON - INDEMNITY INSURANCE

              INDEMNITY  INSURANCE

  Indemnity insurance can be said to be the insurance company undertaken to compensate the insured for the loss suffered by the insured. They are fire,accident, bulgary,marine.

     NON - INDEMNITY INSURANCE

   In this case, the insurance is not aimed at equating any detrimental effect within the compensation. Examples, life, sickness, endowment.

History of insurance 

Insurance has been in force before the advent of colonialism .

The brand of the royal exchange assurance started operation in Nigeria in 1921.the first indigenous company was the African insurance company which was established in 1950. By the time Nigeria gain independent, the number of company had already rose to like 19.

In 1969 , National insurance corporation of Nigeria was established by decree 22 to transact insurance business.

PRINCIPLES OF INSURANCE

1. INSURABLE INTEREST : this is one of the principles of insurance which state that one can only insure properties that will bring liability to insured upon destruction.

2. PROXIMATE CAUSES : This refers to as the actual thing that lead to that particular situation or accident without adding  or removing particular part.

3. UTMOST GOOD FAITH : Is the act by which the insurer and the insured are truthful to each other and disclosing all assets.

4. INDEMNITY : This is the act or process by which the insurer put the insured by to is normal position after the accident .

5. SUBROGATION : This the act by which the insurer steps into insured case.

6. CONTRIBUTION : This is application where two or more insurance company cover the same risk but one of the company is adequate to give the claimant full indemnity.

TYPES OF INSURANCE

1. LIFE INSURANCE : This policy is not a contract of indemnity because it is certain that the insurer must pay in accordance with the term of the policy.

2. PLATE GLASS INSURANCE : This policy deals with items like doors , windows or costly made tape.

3. THIRD PARTY VEHICLE INSURANCE : This covers the risk of damage to a third party in case of accident with the third party.

" it involves all the passengers and even non-passengers of the car or vehicle"

4. MARINE INSURANCE : This is a type of insurance, which policy is to provides protection for goods or cargos against the danger or storm of the sea.

5. FIRE INSURANCE : This is a type of insurance which policy is into protection of good or building that got burnt by fire .



POSTED : LIADI - QAYYUM