State difference between general contract and insurance contract
(5 marks)
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Explanation:
Insurance contract has to have all nine essentials of a valid contract such as competence of the parties, legality of the subject matter, consensus ad idem and so on.
In addition, there must be insurable interest, indemnity, contribution, subrogation, utmost good faith so on.
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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