Fire Insurance and Gambling Contracts

Fire Insurance and Gambling Contracts 2011 : Majority of people who do not know the basic principles of insurance consider that there is no deference between fire insurance contract and gambling or wagering contract But the people who are working in insurance profession, reject that the fire insurance and i being are similar. Following are the main points of distinction gambling between these two ' contract 1 The insurance contract can be enforced in court of law whereas     .

  wagers are hesitate of ultimate legal remedy because they are unenforceable at law.

2. Both the parties to fire insurance must exercise utmost good faith   while in case of gambling contracts there is no obligatory on both parties to disclose any material information.

3. Fire insurance contacts are subject to indemnity Le. there is restriction on maximum about which can be recovered from insurance company in the event of loss. But this is not in gambling contacts where stakes are paid and either of the parties must lose or gain.

4. In Insurance contact the insured event fire is a possibility and .not

certainty. On the other hands wagers involve a definite future event such as horse-racing, but nobody knows who will win or lose.

' 5. Before making fire insurance contracts the policy holder must - '   . possess insurable interest in the prams insured while in gambling , consorts this is not recess. .

6. If fire insurance neither the insured nor the insurer desires the occurrence of fire. In gambling contracts both parties initially want the event to take place, though the loser may change his mind subsequently.