A contract operating on the person of the insured or third party is not necessarily a contract of capital insurance, however, because it could have been the intention of the parties to conclude a pure contract of indemnity insurance. In the formative days of insurance law, things were quite different; insurance was in fact often indistinguishable from gambling. Various criteria may be applied in classifying contracts of insurance. Failure to cooperate would amount to breach of contract (as creditor).
The duty of disclosure relates to material facts, of which parties had actual or constructive knowledge prior to the conclusion of the contract of insurance. Most other terms of the proposed contract are also not expressly stated, the intention being to contract on the usual terms of the insurer. South African Insurance Law is a reduced but not necessarily an abridged version of Lawsa. In Average clauses seek to avoid the disadvantage to insurers of the insured's claiming up to the limit of the sum insured, irrespective of whether his loss is total or partial, by encouraging prospective insured persons to insure up to the full value of their interest in the object of the risk. South African law, however, long appeared to favour the view that only material facts within one's actual or personal knowledge were included in the duty of disclosure.
Once a reference to the usual terms is included in the contract, the insured actually agrees to them; he cannot afterwards be heard to say that he did not have the opportunity to ascertain the exact content of the terms.
In terms of section 59(1)(b) of the Long-Term Insurance Act, and section 53(1)(b) of the Short-Term Insurance Act,
Reinstatement may therefore be described as "direct compensation", because the purpose of reinstatement is to put the insured in the same or similar position as before the loss occurred. Nevertheless, it is the English view that has been received in the South African case law on insurance. Textbook Trader lets you buy and sell your textbooks to others anonymously, you no longer need to deal with strangers, keeping you safe.
The contract of insurance comes into being only when consensus is reached.
If, during the conclusion of the contract, a party is represented by an agent with authority to enter into the contract on behalf of his principal, the intention and acts of the agent must be taken into consideration in deciding whether a contract has come into existence. In terms of an iron-safe clause, the insured warrants that he will keep a complete set of books, showing a true and accurate record of all business transactions and stock-in-hand, and that the books will be locked in a fire-proof safe or removed to another building at night and at all times when the premises are not open for business. The insurer, as offeree, usually accepts the offer by sending to the proposer a policy accompanied by a covering letter which explains that the proposal has been accepted. The following are the requirements for the insurer's right to contribution: It is possible to insure the same interest against the same risk with two or more insurers. In the case of capital insurance, there is certainty that event insured against will occur (whereas in the case of indemnity insurance there is no such certainty), but the timing is uncertain. Many facets of insurance business, including the conclusion of contracts, are transacted through insurance agents representing the respective parties. If they do not reach specific agreement, there can be no contract of insurance (although another type of contract may come into existence). The same holds good for capital insurance. Insurance Activities Article 2 Insurance activities include insurance, coinsurance and reinsurance, as well as activities directly related to insurance. English law in this respect is at variance with the South African law of contract, according to which non-vital terms may also qualify as warranties. Insurance is the result of man’s efforts to create financial security in the face of dangers to his life, person and Broadly speaking, the law of insurance in South Africa is concerned with Insurance against other events must therefore take the form of indemnity insurance. R349.00 Add to Enquiry Modern Company Law for a Competitive South African Economy.
Capital insurers, for example, are not entitled to claim a proportionate contribution by other insurers, or to demand subrogation of the insured's rights in respect of the loss. Both these bases occur in a variety of often highly involved permutations. Generally, the proposer is required Both facultative and treaty reinsurance can be written on a proportional or non-proportional basis. Most policies have a “contribution clause,” which means that, if an insurer pays more than its proportionate share to the insured, the insurer has a right to reclaim a contribution from the other insurers.