Mataracy
VIP Contributor
The condition to perform on the part of one of the parties to an agreement may be conditioned upon the action of the second party. A clause in an insurance contact requiring such a performance is usually referred to as a condition. Failure of one party to perform relieves the other party of obligation.
Policy conditions may be classified in to two main ways:
(1) By whether they appear in the policy document or not . I.e whether they are :
(i) expressed or (ii) implied
(2) Time when condition need to be fulfilled
(I) Conditions precedent to the policy
(ii) Conditions subsequent to the policy
(iii) conditions precedent to liability.
EXPRESS CONDITION
These type of conditions are expressed or stated in the policy. They vary form one class of business to another, and as such may be worded in general or specific terms. Some of the conditions usually found in most policies include:
(a) notification condition
(b) claims procedure
(c)cancellation
(d) contribution
(e) arbitration
(f) adjustment of premium etc
IMPLIED CONDITIONS
There are four conditions which are implied by law to apply to all insurance contracts even though they do not appear in writting viz:
(a) That the insured has an insurable interest in the subject matter insured.
(b) That both parties have observed the utmost good faith in their negotiations leading up to the contract.
(c) Rhat the subject mattet of the insurance is actually in existence
(d) That the subject matter of insurance is able to be identified.
Policy conditions may be classified in to two main ways:
(1) By whether they appear in the policy document or not . I.e whether they are :
(i) expressed or (ii) implied
(2) Time when condition need to be fulfilled
(I) Conditions precedent to the policy
(ii) Conditions subsequent to the policy
(iii) conditions precedent to liability.
EXPRESS CONDITION
These type of conditions are expressed or stated in the policy. They vary form one class of business to another, and as such may be worded in general or specific terms. Some of the conditions usually found in most policies include:
(a) notification condition
(b) claims procedure
(c)cancellation
(d) contribution
(e) arbitration
(f) adjustment of premium etc
IMPLIED CONDITIONS
There are four conditions which are implied by law to apply to all insurance contracts even though they do not appear in writting viz:
(a) That the insured has an insurable interest in the subject matter insured.
(b) That both parties have observed the utmost good faith in their negotiations leading up to the contract.
(c) Rhat the subject mattet of the insurance is actually in existence
(d) That the subject matter of insurance is able to be identified.