Law of Insurance Notes | LL.M. Semester 3 | Mumbai University | munotes

Contents

Module I

1. What Insurance Is 1
2. Risk and the Pooling of Loss 8
3. How Insurance Began 13
4. How Insurance Came to India 18
5. The Need and Importance of Insurance 22
6. The Functions of Insurance 27
7. The Kinds of Insurance 31
8. Insurance, Wager, Indemnity and Guarantee 36
9. Social Insurance 42
10. How an Insurance Contract Is Made 47
11. Insurable Interest 52
12. Utmost Good Faith 57
13. Indemnity 64
14. Subrogation 69
15. Subrogation and Assignment of the Right to the Insurer 74
16. Contribution and Double Insurance 78
17. Proximate Cause 83
18. Risk, and the Effect of an Alteration in It 88
19. Warranties, Conditions and Representations 93
20. How an Insurance Policy Is Construed 99
21. The Rights and Duties of the Insured and of the Insurer 104
22. Reinsurance 109
23. Making a Claim, and What to Do When It Is Repudiated 114
24. Agents, Brokers and Other Intermediaries 118
25. Assignment and Nomination of a Policy 126
26. The Insurance Act 1938 and Who May Insure 133
27. Registration of an Insurer 138
28. Capital and Capital Structure 143
29. Accounts, Audit and the Actuary 148
30. Returns, Inspection and the Authority’s Power to Call for Information 154
31. Investment of an Insurer’s Assets 159
32. Solvency, and the Premium Before the Risk 165
33. Control over Management, and the Administrator 170
34. The Rural and Social Sector Obligations 177
35. Amalgamation, Transfer and Winding Up of an Insurer 182
36. Dividends, Bonuses and the Prohibited Business 188
37. The Life Insurance Corporation Act 1956 192
38. How Life Insurance Was Nationalised 198
39. Compensation for the Nationalised Insurers 204
40. How the Corporation Is Governed 209
41. The Corporation’s Money and the Surplus 216
42. How General Insurance Was Nationalised 222
43. The General Insurance Corporation and the Four Companies 228
44. Privatisation and the Malhotra Committee 233
45. Globalisation, and the Foreign Investment Cap 238
46. The Authority: Establishment, Composition and Tenure 243
47. The Duties, Powers and Functions of the Authority 249
48. The Authority’s Money, and Its Accountability 254
49. The Insurance Association of India and the Councils 260
50. Penalties, Adjudication and Appeal 265
51. Rules, Regulations and Subsidiary Instructions 271
52. The Sabka Bima Sabki Raksha Act 2025 278
53. Where the Indian Insurance Sector Stands 283
54. Where an Insurance Dispute Is Decided 288

Module II

1. The Nature of a Life Insurance Contract 293
2. The Events Insured, and the Factors Affecting Risk 298
3. The Principles of Life Insurance 303
4. Section 45: The Three Year Rule 308
5. The Scope and Objects of Life Insurance 315
6. Kinds of Life Policy 320
7. The Life Policy as Property 325
8. Premium, Lapse, Revival and Surrender Value 331
9. The Life Claim 336
10. Personal Accident Insurance 342
11. What Counts as an Accident 347
12. Health Insurance and Mediclaim 352
13. Sickness, Critical Illness and Group Health Cover 358
14. How a Health Claim Is Regulated 363
15. The Marine Insurance Act 1963 368
16. What a Contract of Marine Insurance Is 374
17. Insurable Interest in Marine Insurance 379
18. Disclosure and Representation in Marine Insurance 386
19. The Marine Policy 392
20. Warranties in Marine Insurance 399
21. Seaworthiness and Cargoworthiness 405
22. The Voyage: Deviation and Delay 411
23. Assignment of a Marine Policy, and the Premium 418
24. Perils of the Sea 423
25. Total Loss and Abandonment 429
26. Particular Average, General Average and Salvage 436
27. The Measure of Indemnity 443
28. Subrogation, Contribution and Under Insurance at Sea 450
29. Hull, Cargo and Freight Insurance 456
30. The Institute Clauses and the Indian Market 461
31. Return of Premium, and the Closing Provisions 467

Module III

1. Property Insurance, and What It Covers 478
2. Fire Insurance, and the Meaning of Fire 484
3. The Standard Fire and Special Perils Policy 489
4. The General Conditions of a Fire Policy 496
5. The Exclusions in a Fire Policy 505
6. Under Insurance, Average and Reinstatement 511
7. Earthquake, Flood and the STFI Group 517
8. Riot, Strike, Malicious Damage and Terrorism 522
9. Burglary and Theft Insurance 528
10. Accidental Loss and Damage, and the All Risks Form 534
11. The Bharat Products 539
12. Engineering and Machinery Insurance 546
13. Business Interruption Insurance 551
14. Crop, Cattle and Rural Property Insurance 557
15. The Property Claim, and the Surveyor 563

Module IV

1. Liability Insurance 571
2. Contractual and Legal Liabilities 577
3. Accidents Arising under Tort: Negligence 582
4. Strict and Absolute Liability 588
5. Accidents Arising under Contract 594
6. Accident Policies 600
7. Assessment of Liability and Compensation 606
8. Contributory Negligence 611
9. Professional Negligence Insurance 617
10. Product and Public Liability at Common Law 623
11. Employee's Compensation under the Code 629
12. Employees' State Insurance under the Code 637
13. Modern Liability Covers 644
14. Compulsory Insurance 649
15. The Necessity for Motor Third Party Cover 654
16. What the Policy Must Cover 659
17. The Certificate of Insurance 665
18. The Third Party's Direct Right against the Insurer 670
19. The Insurer's Defences, and How the Courts Have Narrowed Them 677
20. The Motor Accident Claims Tribunal 685
21. The Powers, Procedure and Functions of the Tribunal 690
22. Who May Claim, and against Whom 696
23. Assessment of Compensation in a Fatal Claim 702
24. Assessment of Compensation for Injury 707
25. No Fault Liability and Section 164 712
26. Hit and Run, the Golden Hour and the Fund 717
27. Public Liability Insurance: the Duty to Insure 723
28. Claiming under the Public Liability Insurance Act 730
29. The Other Statutory Compulsions 738