The course covers the general principles governing insurance contracts, the duty of good faith and disclosure in insurance contracts, misrepresentation, the doctrine of subrogation and contribution, the nature of agency to insurance including the concept of ‘insurable interest’. The process of insurance claims such as notice and proof of loss and the principle of indemnity would be discussed. There will also be case presentations to facilitate effective learning.

Course Outline

1. Definition of Insurance

2. Parties to the Insurance Contract

• assured
• insurers

3. Nature of Insurance Contract

• the subject-matter of insurance
• description of subject matter
• nature of the risk

4. Insurable Interest

• what constitutes insurable interest
• the necessity for insurable interest
• the time for insurable interest
• life insurance
• insurances other than life insurance
• Life Assurance Act 1774
• Life Assurance Policies
• insurance on immovable property
• insurance on goods
• Group insurance

5. The Making of Insurance Contract

• offer and acceptance
• consideration and payment of premium
• effect of the proposal form
• cover notes
• recovery of premiums
• renewal of policy

6. The Proposal Form

• basis clause
• incorrect, incomplete, and blank answers
• indisputability clause

7. The Principle of Good Faith

8. Non-disclosure

• duty of disclosure
• duty to disclose exists regardless of proposal form
• duty to disclose ends at conclusion of contract
• test of ‘materiality’
• scope of duty to disclose
• previous refusals
• previous convictions
• health status
• facts which need not be disclosed
• duration of duty of disclosure
• effect of non-disclosure

9. Misrepresentation

• effect of the questions and answers
• types of inaccuracy
• the whole truth must be told
• where the space for the answer is left blank

10. The Premium

• amount of premium
• payment of premium
• mode and time of payment
• effect of payment
• payment to agent of insurers
• right to claim a return of premium

11. The Policy

• classification of policies
• valued policies
• unvalued policies
• the form and contents of policy
• increase of risk
• the commencement and duration of policy
• payment of policy
• breach of condition
• cancellation of policy
• alteration of policy
• rectification of policy
• renewal of policy
• lapse and revival of policy
• negligent, willful acts of assured
• conditions and promissory warranties of policy
• alteration of risk under policy
• assignment of the policy
• construction of the policy

12. The Claim

• proof of loss
• the time of loss
• the making of a claim
• burden of proof
• the proximate cause of a loss

13. The Settlement of Claim

• payment of the loss
• reinstatement by insurers and assured

14. Subrogation

• the nature of subrogation
• principle of indemnity
• when subrogation arises
• effect of subrogation
• defences available to party sued

15. Contribution

• when the right of contribution arises
• apportionment of the loss

16. Agency in Insurance Transactions

• relationship between agent and the principal
• rights of the agent
• duties of the agent
• consequences of breach of duty
• relationship between the principal and third parties
• relationship between the agent and third parties
• liability for breach of warranty of authority
• liability in tort