1. POLICY S-2(19) of the insurance act 2010 defines- “Policy as a contract of insurance”. It includes all forms associated with the agreement between the insured and insurer.

2. Classification of policies According to the description of the subject- matter- – In which the description of the subject matter is so precise as to confine the insurance to a specific object. – In which the description of the subject matter is expressed in general terms so that the insurance is capable of applying to any object falling within the description.

3. Continued… According to the amount recoverable- – Unvalued policies. – Valued policies.

4. Form and contents of the policy Form vary from company to company Contents 1. HEADING name, reference number, period, sum insured, premium. 2. BODY OF POLICY Recitals, details of particular insurance, event insured against,premium,undertakings and exceptions, stipulations and conditions. 3. BACK OF THE POLICY Terms and conditions of policy. Special terms agreed between parties. Consent of insurers. 4. DOCKET, SUMMARY OF THE POLICY. Various notices or warning addressed to the insured.

5. Commencement of the policy Comes into force from the first day of the period of insurance. If condition precedent then after fulfillment of the condition.

6. Duration of the policy The policy fixes the precise hour at which it is to expire. Otherwise it expires at midnight of the last day specified. The policy may cease to be in force at an earlier date: – Payment of indemnity. – Cancellation or surrender. – Liquidation of insurers – Breach of condition precedent or subsequent

7. Cancellation of the policy By act of the parties By an order of the court.

8. Alteration of the POLICY Mutual Consent, may contain an express stipulation prescribing the manner in which and the person by whom any alteration of the terms of the policy may be made. Must be made in writing By endorsement or by separate memorandum. By inserting words By striking out words By defacing the policy.

9. Rectification of policy When does the question of rectification arise?

10. Rectification of policy The specific relief act -1877-s-31. When, through fraud or a mutual mistake of the parties, a contract or other instrument in writing does not truly express their intention, either party, or his representative in interest, may institute a suit to have the instrument rectified; and if the Court find it clearly proved that there has been fraud or mistake in framing the instrument, and ascertain the real intention of the parties in executing the same, the Court may in its discretion rectify the instrument so as to express that intention, so far as this can be done without prejudice to rights acquired by third persons in good faith and for value.

11. Renewal of policy The policy comes to an end and the liability of the insurers ceases. Renewal receipt or fresh policy. The insurer sends to the insured a renewal notice specifying the renewal premium. Proposal from insurer Payment of renewal premium is acceptance. Where insurers takes no step for renewal a request from the insured amounts proposal.

12. Lapse and revival of policy A policy which is not renewed at or before the expiration of the period of insurance or of the days of grace if any is said to lapse. A request for revival of the policy made by the insured.

13. Exceptions in the policy Exceptions exclude the liability

14. A mortgaged a warehouse to B which was situated next to the boat builder`s shop.one day the shop caught fire, which was extinguished. The warehouse was insured the same evening without disclosing the fire accident. Two days later the mortgagor died. After 10 days of his death the shop again caught fire and engulfed the warehouse. The mortgagee claim indemnity. Whether mortgagee can claim indemnity?

15. Insurable Interest The pecuniary and legal interest of the insured in the subject matter of insurance is called insurable interest. It must be actual and real and not a mere expectation. Who has the insurable interest? 1.Owner(sole or joint,absolute or limited) 2.Such a position that injury to it would affect him adversely. 3.So situated with regard to the thing insured that he would have benefit by its existence,loss from its destruction. 4.May be founded on contract.(Lucena v. Craufurd)bailee`s interest. 5.Mere fact of possession if lawful.