Guide to Understanding Insurance Law in India

Insurance laws frame a legal outline to govern the insurance business and its contracts. Insurance is a type of contract of indemnity in which an insurer indemnifies the other party against a loss that happens due to the happening of a contingent event. This segment of law is governed by the IRDAI. It covers various types of risks. Insurance is a contract of indemnity. It works on the principle of Uberrimae Fides which means in utmost good faith. It means that both the insurer and insured must disclose all the material facts about the person or property being insured. An entity that provides insurance is known as an insurer and the entity to which the insurance is provided is known as the insured.