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As per the provisions of the Indian Contract Act, 1872, under which of the following categories the…

Life insurance is a contingent contract because the promised benefit depends on the specified life-related event, such as death during the policy term or survival to…

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As per the provisions of the Indian Contract Act, 1872, under which of the following categories the contract for life insurance falls?

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Correct answer D

Life insurance is a contingent contract because the promised benefit depends on the specified life-related event, such as death during the policy term or survival to maturity. It ordinarily pays the agreed sum rather than reimbursing a measured financial loss, so it is not indemnity in the strict sense. A genuine life policy with insurable interest is also distinct from a wager.

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