Site navigation

In the context of the Indian Contract Act, 1872, a contract of insurance is a contract of

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 a contract of insurance…

Choose your answer

In the context of the Indian Contract Act, 1872, a contract of insurance is a contract of

Select one answer
Answer and explanation

Correct answer D

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 a contract of insurance (other than life insurance) is generally a contract of "Indemnity". It is not a guarantee, which secures another person's debt or default (section 126), a bailment, which is a delivery of goods for a purpose (section 148), or agency, which is acting for another (section 182).

Practice for these exams

Related question papers

Related exam syllabi

Related questions in this topic