CHANAKYA NATIONAL LAW UNIVERSITY

Nyaya Nagar, Mithapur, Patna-800001

(8th Semester)

LAW OF INSURANCE
Course Module
Academic Session- January May, 2017
Course Teacher: Dr. Shaiwal Satyarthi

Objectives:
Insurance law is a subject of key import to individuals & the business sector. The aspiration
of insurance is to compensate the aggrieved party, as far as money can, against loss arising
from a variety of risks. Thus, when a person enters into an insurance contract he purchases
for an agreed Premium, financial coverage from loss sustained due to the peril insured
against. Insurance is omnipresent in the practice of law. In litigation, insurance often
determines who gets sued and what they get sued for. In transactional law, insurance
frequently constrains or induces deals. The importance of insurance for lawyers stems from
the fact that insurance is the primary means by which companies and individuals deal with
risks. Lawyers, of course, often make a living either by counselling clients about how to
plan for risks or by serving clients whose risks have developed into losses. Just as good
attorneys must understand insurance, good insurance arrangements must rely on attorneys.
Lawyers are of fundamental importance to insurance, which is itself defined by a complex
web of contract and tort law, statutory law and state regulatory law. This course will
introduce students to fundamental principles of insurance law and regulation. The
operational framework of insurance is provided by the general principles of contract. The
insurance policy, being a contract, is subject to all the judicial interpretative technique of
rules of interpretation as propounded by the judiciary, besides, the insurance idea has a
compensatory justice component.
This course is designed to acquaint the students; pursuing B.A.LL.B five year program, with
the conceptual and operational parameters, of insurance law.

MODULE- I
INTRODUCTION:
a) Definition, nature and history of insurance
b) Concept of Insurance and law of contract
c) Role of Insurance in globalized economy
d) History and development of insurance in India

MODULE- II
GENERAL PRINCIPLES OF LAW OF INSURANCE:
a) Essential elements of insurance contracts.
b) Formation of insurance contracts.

c) Nature of insurance contracts

Contract of Aleatory
Contract of Uberrima fides
Contract of Indemnity
Contract of Wager
d) Insurable interest
e) Risk
f) Assignment of Insurance policies
g) Warranties & disclosures
h) Double insurance & re-insurance
i) Doctrine of Contribution and Subrogation

To be completed before Surprise Test: Number of Lectures: 20

MODULE- III
LIFE INSURANCE:
a) Nature & scope of life insurance
b) Kinds of life insurance contracts
c) Events insured against in life insurance with special reference to Felo-De-Se.
d) Factors affecting risk in life insurance
e) Persons entitled to payment under life insurance
f) Settlement of claims

MODULE- IV
FIRE INSURANCE
a) Origin and Object of Fire Insurance
b) Basic principles of Fire Insurance contracts.
c) Nature, Meaning, significance of fire insurance.

To be completed before Mid Semester Examination: Number of Lectures: 20

MODULE- V
MARINE INSURANCE:
a) Nature and scope
b) Classification of marine policies
c) The Marine Insurance Act 1963
d) Insurable interest, insurable value
e) Marine insurance policy- condition- express warranties- construction of terms policy
f) Voyage deviation
g) Perils of the sea
h) Partial loss of ship and of freight, salvage, general average, particular charges

MODULE- VI
INSURANCE AGAINST THIRD PARTY RISKS:
a) The Motor Vehicles Act, 1988 (Chapter XI)
Necessity for insurance against third party risk
Duty to give information as to insurance
limitations on third partys rights

MODULE- VII
INSURANCE REGULATION AUTHORITY (IRDAI) ROLE AND FUNCTIONS

To be completed before End Semester Examination: Number of Lectures: 20

*Note: Questions will be asked from all the modules in the End Semester Examination
Suggested Books:
1. Murthy & K V S Sarma, Modern Law of Insurance, (Butterworths Wadhwa
Publications, Nagpur).
2. SV Joga Rao, MN Srinivasans Principles of Insurance Law, Lexis Nexis
Butterworths Wadhwa, Nagpur
3. Robert Merkin, COLINVAUXS Law of Insurance, Sweet & Maxwell, South Asian
Edition.
4. M. N. Sreenivasan, Law and the Life Insurance Contract, (Butterworths Wadhwa
Nagpur)
5. Mishra, M.N., Law of Insurance Principles and Practice, Radhakrishan Prakashan
6. Birds, John, Modern Insurance Law, Universal Publishing Co. (Latest Edition)
7. B.C. Mitra, Law Relating to Marine Insurance. Asia Law House, Hyderabad.
Suggested Bare Acts:
1.
2.
3.
4.
5.
6.
7.

The Insurance Act, 1938;

The Insurance Laws (Amendment) Act 2015
The Insurance Regulatory Authority Act, 1999
The Life Insurance Corporation Act, 1956
The Marine Insurance Act, 1963
The Motor Vehicles Act, 1988 (Chapter XI)
The Consumer Protection Act, 1986

VIIIth- Semester Project Topics

Subject:- Law of Insurance
Course Teacher- Dr. Shaiwal Satyarthi

Section 'A'
Sl.
No.

Roll
No.

901

Insurable Interest

902

Insurance Agents duties, responsibilities and liabilities towards Policy

Holders and Insurer.

904

Warranty, Conditions and Stipulations of Insurance Contracts

905

Interpretations of Clauses under Insurance Contracts

906

A Critique on Foreign Exchange Management (Insurance) Regulation

907

Information Technology and Insurance Business

908

Investment Issues of Insurance sector

909

Disclosure and Representaion under Marine Insurance

910

Tax exemption and Insurance Policy

10

911

State Control of Insurance Business

11

912

Insurance Product Pricing

12

913

Compulsory Insurance of Motor Vehicle

13

914

Role of Proximate Cause in Marine Insurance

14

916

Assignment of Insurance Policies: Studying the Issues Involved

15

917

The Insurance Law Contract as a Contract of Good Faith: A Critique

16

921

IRDA control over sectorwise distribution of Insurance Business

17

922

Forfeiture under Insurance Law

18

923

Special Doctrines under Insurance Law

19

924

Beneficiaries and Nominees: A study of the issues involved

20

925

Banks and the Insurance Business: The Indian Position

21

926

Breach of Warranty, Consitions and stipulations

22

927

The Concept of Reinsurance

23

928

Life Insurance and Suicide: A Study of the Legal Position and Judicial
Pronouncements

Project Topic

24

930

Fraud in Insurance Contracts: A study of judicial pronouncements

25

931

Challenges under the Insurance Act, 1938

26

933

Burden of Proof in Insurance Law

27

935

Essential Tenets of Insurance Law

28

936

Reinsurance

29

937

A Critique on Actuaries, Surveyors, Loss Assessors and Brokers

30

940

Indemnity and Insurance: A Comparative Analysis

31

941

Exclusion Clauses in Insurance Policies

32

942

A Comparative study of life insurance vis--vis non-life insurance

contracts

33

943

Unit-linked Insurance Policy

34

944

Civil Death in Insurance Contracts

35

945

Forfeiture and Surrender of life Insurance policy

36

946

Can life Insurance policy be traded? Legal and Moral Implications

37

947

Nature and Scope of Fire Insurance

38

948

Marine Insurance Act: Problems and Perspectives

39

950

A Critique on IRDA Act 1999

40

951

A Critique on Marine Insurance Act 1963

41

952

Procedure for subscribing Marine Insurance policy

42

953

A Critique on Cargo Insurance

43

954

Fraud in Proposal/Claim Payment

44

955

Hull Insurance and its Relevance

45

957

A Critique on Maritime Perils

46

958

Assessment of Loss and Abandonment in Marine Insurance: A Critique

47

959

Types of Marine Insurance Policies and Its Usefullness

48

960

A Critique on Yashaswini Health Insurance Policy

49

961

A Critique on Travel Insurance

50

962

A Critique on Micro Insurance

51

963

A Critique on Postal Insurance

52

964

Professional Liability Insurance

53

966

A Critique on Employees State Insurance Corporation

54

967

Motor Accident Claims Tribunal

55

968

Insurance Law: Essential Tenets

56

969

Risk and Insurance: A Relationship

57

970

Fraud at the time of Proposal/Claim payment

58

971

Crop and cattle Insurance: Law and Policy

59

972

Burden of Proof in Insurance Disputes

60

973

Insurance service and Consumerism: Studying the Judicial Trend

61

974

The Public Liability Insurance Act 1991

62

976

Doctrine of Causa Proxima

63

977

A Critique on Hull Insurance

64

9704

Critical Analysis of Insurance Laws (Amendment) Act 2015

65

9778

Interpretations of Clauses under Insurance Contracts

66

9836

A Critique on Foreign Exchange Management (Insurance) Regulation

67

97551

A Critique on Motor Vehicle Insurance

th

VIII - Semester Project Topics

Subject:- Law of Insurance

Course Teacher- Dr. Shaiwal Satyarthi

Section 'B'
Sl.
No.

Roll
No.

1002

Nuclear Liabitily Insurance

1003

Credit Insurance

1004

Repudiations of Insurance contract

1006

Control of Public and Private Insurance companies

1007

Goods in Transit Insurance

1008

Surrender and paid up value of insurance policy

1010

Third Parties Rights against Insurers

Project Topic

1011

Studying the Concept of Premium and Risk

1012

Seaworthiness and Marine Insurance Law

10

1013

Insurance covering Risk of Storm and Tempest

11

1014

Fraud at the time of Proposal/Claim payment

12

1015

Insurance Law: Essential Tenets

13

1016

Fire Insurance Contract

14

1017

Group Insurance: A Critique

15

1018

Employee's State Insurance

16

1020

Relationship between Insurance Law and Transfer of Property Law

17

1021

Public Liability Insurance

18

1022

Health (Medi-Claim) Insurance

19

1023

Life Insurance Policies: Lapse, Revival and Maturity

20

1024

Professional Indemnity Insurance

21

1025

Functions and benefits of Insurance

22

1026

Expanding the Field: New Types of Insurance Policies

23

1027

Double Insurance

24

1028

Duty of Disclosure

25

1031

Law relating to Insurance Contract

26

1032

Utmost Good Faith

27

1033

Contribution and Subrogation

28

1034

Construction of Marine Insurance Policy

29

1035

The Concept of Reinsurance

30

1036

Fidelity Insurance

31

1039

Effect of Will on life Insurance Policy Claim under various Personal Laws

32

1041

Loss and Abandonment

33

1042

Right of Insurer on Payment

34

1044

Standard Fire Policy

35

1045

Fire Claims and Amount Recoverable

36

1046

Non-Disclosure and Misrepresentation

37

1047

Formation of Life Insurance Contract

38

1048

Insurance ombudsman: A Critique

39

1049

Employer's Liability Insurance

40

1050

Insurable Interest in Life Insurance

41

1051

Contractor's Risk Insurance

42

1052

Consequential Insurance

43

1053

Measure of Indemnity in Marine Insurance

44

1054

Nature of Fire Insurance Contract

45

1055

Plea of Expiry of Insurance

46

1056

Role of Proximate Cuase in Fire Insurance

47

1057

The Insured Perils in Marine Insurance

48

1058

Law governing Motor Insurance

49

1059

Insurance and Contributory Negligence

50

1061

Comparative study of Insurance Saving and Bank Saving

51

1062

Insurance Law as a Tool of Risk Management

52

1063

Aviation Insurance