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Commerce · Q149

Insurance

Graduate and Post Graduate · Commerce · question 149

Q149

Which of the following is the correct statement?

A.
Life insurance contract is a verbal contract through custom and usage
B.
Life insurance is a legally enforceable contract between the insurer and the insured, as per the Indian Contract Act, 1872
Answer
C.
Verbal contracts, like life insurance, are enforceable
D.
Life insurance, like a wagering contract, is a business practice

Answer: Option B

Solution

Answer: Option B
Solution:
As per the Indian Contract Act, 1972, life insurance contract is a legally enforceable contract between the insurer and the insured.