1. Life insurance

2. DEFINITION
Life insurance is the business effecting contracts of insurance upon human life including any contracts whereby the payment of money is assured on death except death by accident on the happening of any contingency dependent on human life and any contract which is subject to the payment of premium for a term dependent on human life.

3. CharacterIstics of Life Insurance :-
Outcome of contract
Payment of premium
Payment of sum assured
Insurable interest
Not a contract of indemnity
Related risks to life
Financial help
Encouraging savings

4. Nature of Life Insurance:-
1) Economic nature of life insurance:-
A family need food, shelter, clothing are met out of the current income.
The current income of everybody depend upon the earning they make.
A person may reach an age when he can’t earn.

5. The insured savings will help in meeting the necessaries.
Money received against the insurance policy also provide a source of income.

6. 2) Legal Nature of Life Insurance
As per Life Insurance Act, Life Insurance is the business of effecting contracts of insurance upon human life, including any contract whereby the payment of money is insured on death or the happening of any contingent dependent on human life and any contract which is subject to the payment of premium for a term dependent on human life.

7. Procedure for Taking Life Insurance:-
Filling of proposal form
Proof of age
Medical examination
Agents report
Acceptance of proposal
Payment of premium
Issue of policy

8. Uses of Life Insurance Provides protection for family
Encourages savings
Provides channels for investment
Eliminates dependency
Help in capital formation
Loans against policy
Provides liquidity
Helpful for partnership concern

9. Nature of General Contracts:-
Agreement
Competency of the parties
Free consent of the parties
Legal consideration
Legal object

10. Insurable Interest:- proof not required Proof required
Insurable interest in own’s life
Insurable interest in other’s life
proof not required
Proof required

11. When proof not required :-
In the following cases, no proof is required:
Husband has insurable interest in the life of wife
Wife has insurable interest in the life of husband

12. When proof is required:-
In the following cases, proof is required:
Business relationship:
Creditor in the life debtors
Partners has insurable interest in the life of each partner
Employee has interest in the life of key-man
Surety has insurable interest in the life of principle
2) Family relationship

13. General Rules for Insurable Interest
Time of insurable interest
Insurable interest must be valuable
Services
Insurable interest should be valid
Legal responsibility may from the basis of insurable interest
Insurable interest must be definite
Legal consequences

14. Principal of Utmost Good Faith
Life insurance required that the principal of utmost good faith should be preserved by both the parties to the contract, insurer and insured. Both the parties must be of same mind and disclose all the material fact affecting risk to each other.

15. WARRANTIES
The representations which are contain by the policies, expressly or implicitly forming the part of the contract is non as warranties.
Two types of warranties are-
Informatory
Promissory

16. Proximate Cause
The efficient or effective cause which causes the loss is called proximate cause.
The doctrine of proximate cause is not applicable in life insurance cases except the following –
War risk
Suicide
Accident benefit

17. Return of Premium
Generally, the premium paid is not returned but in the following cases, premium is returned-
For reason of equity
By agreement in the policy

18. Other Features Alcatory contract Unilateral contract
Conditional contract
Contract of adhesion
Indemnity contract is not applied
Loan against policy
Provide liquidity
Tax concern

19. Thank you