The Nature of Insurance came about to offset any loss that an individual or those engaged in business may suffer through the occurrence of some unforeseen event. To offset this loss the commercial world developed the contract of insurance. In return for a fee the individual, or the business enterprise, would be indemnified for the loss suffered on the occurrence of the event insured against. Contracts of insurance cover a wide field such as life assurance, personal accident public liability, damage to property and general liability insurance. The premium is the consideration for the risk undertaken by the insurer. The method and the time of payment depends on the terms of the policy. The insurer may sue for the premium where there is a binding contract to issue the policy. In practice, this is rarely possible because the policy usually provides that the insurers are not on risk until the premium is paid.

Asha Antony

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