Is Contract Of Insurance A Wagering Agreement

Under Maltese requirements for agreements, the doctrine of pacta sunt servanda generally applies, unless specific legislation is adopted against the species. It is a principle of international law that means „promises must be kept.” [1] In insurance, the insured always pays a premium that is not relevant to the event. However, the insurer must meet its obligations to the insured in the event of a contract. If this is not the case, the insurer would not have to compensate the insured. At Wagering, there will always be at least one party that makes a profit and another that will make a loss. Therefore, after the contract has arrived, at least one party will have made a loss and another will have made the acquisition. 4. With the exception of life insurance, an insurance contract is a compensation contract, i.e. a repair contract. In a betting contract, the parties create risk and want to earn money with the event or not, while in insurance, the risk already exists and the purpose of the contract is simply to transfer the risk. While there is uncertainty and payment is made on what is happening, in both cases it is really the case. Here are the differences between these two contracts.

A betting contract is a blind contract and there is no reference to accurately assess the risk. On the other hand, all insurance contracts are based on a scientific and actuarial calculation of risks and the premium is calculated taking into account all the circumstances of the risk. We are not well aware that we are constantly going through some form of risk management as a public donation. [3] Insurance is a typical example, whether it is life insurance, accident, life insurance or the car. Insurance is an agreement that transfers the burden of the potential loss from one party to another for a consideration called a premium. Insurance contracts are compensation contracts, that is, the transfer of potential monetary policy losses to another party, the insurer. One of the main features of insurance is the interest in insurance, defined as a legal right to protect against any event that could cause financial harm or legal liability. [4] In short, it may be a legal and financial relationship between the insured and the subject of the insurance. compensation and nothing other than compensation is provided as part of insurance other than the accident of life or the person; it is not a gamble.

The amount paid under an insurance contract represents the actual harm suffered; Whoever wins a bet has returned his bet, with a few additions. 1. An insurance contract is a contract designed to set up the loss of another person`s property (or life) against a consideration called a premium. While some people look at these two concepts and try to use them interchangeably, they are different and focus on specific circumstances. One of the most important differences between insurance and bets that have been identified is that the insurance tries to guarantee their position against a premium with an insurer. It is thus established that they would suffer losses in particular circumstances, but that they would be compensated by the insurer. Most of the time, that would not happen. On the other hand, bets must appear unstablely in the agreement itself and, as soon as the contractual event occurs, the positions of all parties will be changed.

The scope of an insurance contract is that in the event of an uncertain event, the insured would attempt to mitigate or restore the situation before the consequences of the event. For Wagers, the motivation behind such agreements is different.