Insurance Law Notes | LL.B. (Three Years) Semester 2 | SPPU | munotes

Contents

Module 1 Introduction to Insurance Law

1. What Insurance Is 1
2. How Insurance Began: The History across the Globe 9
3. How Insurance Came to India 14
4. How Life Insurance Was Nationalised 19
5. How General Insurance Was Nationalised 27
6. Privatisation and the Malhotra Committee 34
7. Globalisation and Foreign Investment in Insurance 39
8. The Sabka Bima Sabki Raksha Act, 2025 44
9. The Nature and Characteristics of Insurance 49
10. The Scope of Insurance 55
11. The Need for and Importance of Insurance 61
12. The Kinds of Insurance 66
13. Compulsory Insurance 70
14. Public Liability Insurance: The Duty to Insure 80
15. Claims under the Public Liability Insurance Act 90
16. The Insurance Regulatory Framework in India 102
17. The IRDAI: Establishment, Composition and Structure 109
18. The Duties, Powers and Functions of the IRDAI 116
19. The Role of the IRDAI: Rules, Regulations and the Advisory Committee 122
20. The IRDAI's Funds and Its Accountability 128
21. The Rural and Social Sector Obligations 134
22. Returns, Inspection and the Authority's Power to Call for Information 138
23. Control over Management and the Administrator 144
24. Penalties, Adjudication and Appeal under the Insurance Act 153
25. Rules, Regulations and the Closing Provisions of the Insurance Act 161
26. The Life Insurance Corporation of India 167
27. How the Life Insurance Corporation Is Governed 174
28. The Corporation's Funds, Accounts and Surplus 182
29. The General Insurance Corporation and the Public Sector Insurers 188
30. The Life and General Insurance Councils 195
31. Registration of an Insurer 200
32. Capital and Capital Structure of an Insurer 207
33. Investment of Assets and the Solvency Margin 213
34. Accounts, Audit and the Actuary 221

Module 2 General Principles of Insurance

1. The General Principles of the Law of Insurance 229
2. The Principle of Indemnity 232
3. Double Insurance 237
4. Subrogation 241
5. Contribution 245
6. Insurable Interest 249
7. Insurance Distinguished from Wager, Indemnity and Guarantee 254
8. Utmost Good Faith: Uberrima Fides 259
9. Misrepresentation, Non-Disclosure and Fraud 265
10. Section 45: When a Life Policy Can No Longer Be Questioned 271
11. Causa Proxima: The Proximate Cause 277
12. Risk: Its Meaning and Nature 281
13. How Risk and Insurance Are Related 285
14. Risk Management 291
15. Loss Minimisation: The Duty to Act as if Uninsured 295

Module 3 Contract of Insurance

1. Insurance as a Contract: The Law of Contract Applied 300
2. The Proposal, Its Acceptance and the Cover Note 306
3. The Insurance Policy 312
4. Types of Insurance Policies 323
5. Warranties, Conditions and Exceptions in a Policy 328
6. How a Policy Is Read: The Rules of Construction 339
7. Endorsements 347
8. Professional Negligence Insurance 354
9. Re-insurance 362
10. Agents, Brokers and Other Intermediaries 367
11. Consideration: The Premium 375
12. Other Legal Aspects of General Insurance 381
13. Nomination 389
14. Assignment of a Policy 398

Module 4 Life & Health Insurance

1. The Nature of Life Insurance 407
2. The Principles of Life Insurance 413
3. The Scope of Life Insurance and the Events Insured Against 419
4. Kinds of Life Policy 425
5. The Life Insurance Contract: Premium, Lapse, Revival and Surrender 430
6. The Life Policy as Property 438
7. Who Is Entitled to Payment under a Life Policy 444
8. Settlement of Life Insurance Claims 450
9. Insurance Pertaining to Life, Personal Accident and Hospitalisation 456
10. Hospitalisation and Mediclaim 461
11. Sickness and Critical Illness Insurance 467
12. Health Cover for the Poor, the Sick and the Old 472
13. Personal Accident Insurance 479

Module 5 Fire & Marine Insurance

1. Fire Insurance: Nature and Scope 487
2. The Basic Principles of Fire Insurance 494
3. The Standard Fire and Special Perils Policy and the Bharat Products 502
4. Property Insurance 509
5. Riot, Strike, Civil Commotion and Malicious Damage 517
6. Policies Covering Explosion, Earthquake and Flood 523
7. Policies Covering Accidental Loss and Damage to Property 528
8. Policies Covering Construction Risks 534
9. Burglary and Theft Insurance 542
10. Conditions and Warranties in Fire Insurance 550
11. The Rights and Duties of the Parties 556
12. The Fire Claim and the Surveyor 563
13. Partial Loss: Particular Average, General Average and Salvage 571
14. The Nature and Scope of Marine Insurance 576
15. The Marine Insurance Act, 1963: Salient Features 581
16. Insurable Interest in Marine Insurance 586
17. Insurable Value 591
18. Disclosure and Representations in Marine Insurance 595
19. Conditions and Express Warranties in Marine Insurance 600
20. Seaworthiness and Cargoworthiness 604
21. The Voyage: Change, Deviation and Delay 609
22. Perils of the Sea and the Proximate Cause 614
23. Total Loss and Abandonment 619
24. The Measure of Indemnity: Loss of Ship and of Freight 625
25. Subrogation, Contribution and Under-insurance at Sea 631
26. Assignment of a Marine Policy 635
27. Return of Premium and the Closing Provisions 639
28. Hull, Cargo and Freight Insurance 644
29. The Marine Insurance Policy 650
30. The Classification of Marine Policies 655
31. Marine Cargo Policies in Practice: Specific, Open, Special Declaration, Special Storage, Annual and Duty Policies 660

Module 6 The Motor Vehicle Insurance

1. Motor Insurance: Salient Features, Nature and Scope 663
2. Persons Governed, and What the Policy Must Cover 672
3. The Third Party Liability of the Owner 678
4. The Certificate of Insurance and Its Transfer 683
5. The Duty to Give Information, and the Rights of the Third Party 688
6. The Insurer's Duty to Satisfy Awards, and Its Defences 694
7. Settlement by the Insurance Company 701
8. The Claims Tribunal: Constitution and Jurisdiction 705
9. Making a Claim before the Tribunal 710
10. The Procedure, Powers and Award of the Tribunal 716
11. Assessment of Compensation 722
12. Road Safety, Offences and the National Transportation Policy under the Motor Vehicles Act 728
13. No Fault Liability, Hit and Run, and the Motor Vehicle Accident Fund 732

Module 7 Agricultural Insurance

1. Agriculture Insurance in India 738
2. The Problems Associated with Crop Insurance 747
3. Crop Insurance in India: The Pradhan Mantri Fasal Bima Yojana 753
4. Crop Insurance Underwriting 760
5. Crop Insurance Claims 767

Module 8 Emerging Issues in Insurance Law, Insurance Fraud And Ethics

1. The Future of Insurance in India and across the Globe 775
2. Modern Liability Covers 780
3. Insurance Fraud and Ethics: The Types of Fraud, Their Prevention and Detection, and Fair Treatment 785
4. Insurance as a Service under the Consumer Protection Act, 2019 790
5. Deficiency in Insurance Service, Unfair Practices and Unfair Terms 799
6. The Role of Consumer Commissions in Insurance Disputes 808
7. The Insurance Ombudsman 817
8. Complaining to the Insurance Ombudsman 828