Mataracy
VIP Contributor
The major difference between an insurance contract and other Commercial contracts is that:
(1) Insurance contract deals with invisible product I.e the buyer (insured) can not see, feel and even touch what he/ she is buying.
(2) Insurance contract is based on trust. The insurer believes on the information supplied by the proposed on which assessment is based and the insured also believes that on event of a contingency insured against occurring, he will receive adequate compensation from the insurer.
(3) Utmost good faith is required in insurance whereas the seller of goods does not need to disclose additional information on a prodict since the buyer can see, feel and touch the goods.("caveat emptor").
(4) Most of the commercial contract might not be backed up by legal document but the police document which guide the conducts and operations of both the insured and the insurer.
(5) There is physical exchange of goods in commercial contract whereas it is not so in insurance.
(6),Damage to the subject matter of insurance normally calls for indemnification in insurance where as damage to the items or goods bought does not call for compenciation by the seller.
What is you take on these ?and what are the other differences you can state out between insurance contract and commercial contract?
(1) Insurance contract deals with invisible product I.e the buyer (insured) can not see, feel and even touch what he/ she is buying.
(2) Insurance contract is based on trust. The insurer believes on the information supplied by the proposed on which assessment is based and the insured also believes that on event of a contingency insured against occurring, he will receive adequate compensation from the insurer.
(3) Utmost good faith is required in insurance whereas the seller of goods does not need to disclose additional information on a prodict since the buyer can see, feel and touch the goods.("caveat emptor").
(4) Most of the commercial contract might not be backed up by legal document but the police document which guide the conducts and operations of both the insured and the insurer.
(5) There is physical exchange of goods in commercial contract whereas it is not so in insurance.
(6),Damage to the subject matter of insurance normally calls for indemnification in insurance where as damage to the items or goods bought does not call for compenciation by the seller.
What is you take on these ?and what are the other differences you can state out between insurance contract and commercial contract?
