Mataracy
VIP Contributor
Insurance need not if necessary be in writing and there is no legal requirement to this effect except for marine insurance. However, as a matter of business practice, to avoid misunderstanding of the intentions of the parties, insurance contract s are ordinary written. This will clearly reflect their intentions and the terms on which the agreement was based as the policy will itself serve as the evidence of the contract. Thus in drafting the policy the parties are careful to ensure that the wordings and terms used represent the meanings or effects are understood by them.
POLICY WORDINGS
The wordings if insurance polices are guided by general principles, rules or features of policy constructions. Some of these are briefly examined below:-
(a) Contract of Adhesion.
Under this insurace contract is said to be a "contract of adhesion" in that itvia ordinary prepared in all its details by the insurer and the insured has nobpart in drawing up its clauses or determining its wordings.
(b) The contra proferentem rule
Since the insurer prepares the policy document which is expected to represent clearly the intent of all the parties, it is generally enforced that where the terms of the policy are ambiguous, obscure, or susceptible of more than one interpretation it will be constructed in favour of the insured.
(c)Construcion according to the context and generally understood meaning.
(d) The Ejusdem Generis rule.
This rule stipulates that in a context where a group of particular things, items or terms has been specified and followed by more general terms, the general terms will be property constructed as falling in the group of the more specific terms.
(e) Printed,typed and handwritten words
Where there is conflict or contradiction in terms between the printed policy form and the typed or written parts, it will be construed that the typed or the handwritten part will overrule those of the standard printed parts.
POLICY WORDINGS
The wordings if insurance polices are guided by general principles, rules or features of policy constructions. Some of these are briefly examined below:-
(a) Contract of Adhesion.
Under this insurace contract is said to be a "contract of adhesion" in that itvia ordinary prepared in all its details by the insurer and the insured has nobpart in drawing up its clauses or determining its wordings.
(b) The contra proferentem rule
Since the insurer prepares the policy document which is expected to represent clearly the intent of all the parties, it is generally enforced that where the terms of the policy are ambiguous, obscure, or susceptible of more than one interpretation it will be constructed in favour of the insured.
(c)Construcion according to the context and generally understood meaning.
(d) The Ejusdem Generis rule.
This rule stipulates that in a context where a group of particular things, items or terms has been specified and followed by more general terms, the general terms will be property constructed as falling in the group of the more specific terms.
(e) Printed,typed and handwritten words
Where there is conflict or contradiction in terms between the printed policy form and the typed or written parts, it will be construed that the typed or the handwritten part will overrule those of the standard printed parts.
