Under the Indian Contract Act, 1872, a contract of life insurance is a:

Under Section 31 of the Indian Contract Act, 1872, a "contingent contract" is a contract to do or not to do something if some event, collateral to such contract, does or does not happen. A contract of life insurance is a contingent contract because the insurer's liability to pay the assured sum depends upon the happening of a specified uncertain event (such as death or survival to a stipulated age). It is not a wagering agreement under Section 30 because the assured has an insurable interest, nor is it a contract of indemnity under Section 124 (which in Indian statute law covers loss caused by human conduct, and even under general insurance principles life insurance is never a contract of indemnity because human life cannot be valued in money), nor a tripartite contract of guarantee under Section 126.