Mataracy
VIP Contributor
Consideration is one of the basic elements of all contracts including insurance. It is a price or a sacrifice made by one person in exchange for an action or a promise of the other person to perform some mutual obligation.
A comprehensive definition state some right. Interest, profit or benefit or benefit accruing to one party or some forbearance, detriment , loss or responsibility given, suffered or undertaken by the other.
Going by this definition, in the contract of insurance, consideration on the part of the insured is the premium he PAYE while on the part of the part of the insurer, consideration is the sum insured or it's equivalent which becomes pay a in the event of loss. What is apparent here is that consideration is simultaneously satisfied once onc offer and acceptance are accomplished. Indeed it is a basic principle of insurance and whatever risk is insured against is not covered by the policy.
It uw necessary to note, however, that the essential requirement of consideration depends on the form of the contract whether it is a simple contract or contract under seal.
Simple contracts need not b nor in writing, they can be made orally or by conduct but must be supported by valuable consideration.
What can you say about the meaning of Consideration in Insurance?
A comprehensive definition state some right. Interest, profit or benefit or benefit accruing to one party or some forbearance, detriment , loss or responsibility given, suffered or undertaken by the other.
Going by this definition, in the contract of insurance, consideration on the part of the insured is the premium he PAYE while on the part of the part of the insurer, consideration is the sum insured or it's equivalent which becomes pay a in the event of loss. What is apparent here is that consideration is simultaneously satisfied once onc offer and acceptance are accomplished. Indeed it is a basic principle of insurance and whatever risk is insured against is not covered by the policy.
It uw necessary to note, however, that the essential requirement of consideration depends on the form of the contract whether it is a simple contract or contract under seal.
Simple contracts need not b nor in writing, they can be made orally or by conduct but must be supported by valuable consideration.
What can you say about the meaning of Consideration in Insurance?
