Question

How does insurance contract differ from general contract ?​

Answer 1

The basic difference is that one party actually pays the premium in cash whereas the other only promises to pay the claim at an uncertain future date, should some specified event happen.

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Answer 2

Difference between Insurance contract and General contract -

Explanation:

• Insurance Contract -

1. Most of the specific rules in the area of insurance contract law cover both B2C and B2B contracts, even  though not always to the same extent. While the rules on B2C contracts are usually of a mandatory  nature, their applicability to B2B contracts is more nuanced.
2. Many of the insurance contract law provisions may be derogated from in B2B contracts, or establish additional exceptions and options .
3. The area of third party motor liability insurance is covered partially by Solvency II, but also by the  specific Motor Insurance Directive. The latter Directive contains a few additional specific rules on the  cover and content of the insurance policy.
4. The recast proposal for an Insurance Mediation Directive (IMD II) is relevant to the extent that it  contains certain rules on the provision of pre-contractual information, disclosures and advice, which  also have a relevance to the conclusion of insurance contracts.

• General Contract -

1. The largest number of relevant rules concern B2C contracts. As a matter of principle, consumer  protection rules are mandatory, as they aim to ensure an appropriate level of protection for  consumers as the weaker party to a contract.
2. In particular, the Distance Marketing of Financial  Services Directive and the Unfair Contract Terms Directive contain general rules of consumer  contract law, which also apply to insurance contracts.  
3. The number of general contract law rules in the area of B2B contracts is more limited. The Directive on  Electronic Commerce  applies both to B2C and B2B contracts.
4. It addresses the contract law aspects  relating to the conclusion of contracts. It ensures that the Member States' legal systems recognize the  validity of contracts concluded by electronic means and provides for a set pre-contractual information  requirements and a confirmation       of the concluded contract.