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A contract of insurance is what kind of contract?

Section 124 of the Indian Contract Act, 1872 defines a contract of indemnity as one by which one party promises to save the other from loss, and fire, marine, motor and…

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A contract of insurance is what kind of contract?

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Section 124 of the Indian Contract Act, 1872 defines a contract of indemnity as one by which one party promises to save the other from loss, and fire, marine, motor and other general insurance contracts are of this kind, as the Supreme Court noted in United India Insurance Co v Kantika Colour Lab (2010); so insurance is a "Contract of indemnity". A guarantee or surety contract under section 126 answers for a third person's default, and a bailment under section 148 is a delivery of goods. Life insurance is the main exception, being a contingent contract to pay a fixed sum.

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