Contract of Insurance:

Since we were born, our life is at a stake of constant risks, there are so many
unexpected events or incidents that will swipe us off without us being ready to bear the
results of it. Some events bring losses to us financially, causing us troubles to get the
money to cover the losses. (E.g. Fire, theft, accident, earthquakes etc.) However, in
modern societies, we have something called contract of insurance, which is a mean to
protect and compensate people or businesses against the risk of loss due to certain
occurrence of events.
Contract of insurance is defined as a contract which one party agrees for payment of a
consideration to make monetary provision for the other upon the occurrence of some
event or against some risk (the loss which is being insured) according to Oxford
Dictionary of Law.
Contract of insurance have varieties and they are being classified in accordance to its
function to perform (Insurance of Person, Insurance of Property, Insurance of Liability,
and Insurance of Financial Interest etc.), the main classes of business ( Life Assurance,
Marine Insurance, Fire Insurance, Accident Insurance etc.) and the insurance act ( Life
business and General business).
The term assurance has similar meaning as insurance, however it is generally used on
events that will definitely happen but the time of it occurrence is not definite. For
example, death.
Contract of insurance are separated into two types, indemnity insurance, which provides
an indemnity against loss and in which the measure of the loss is the measure of
payment; whereas contingency insurance, which involves payment on a contingent
event and in which the sum paid is not measured by the loss but stated in the policy.

Insurer:
As mentioned before, contract of insurance need the involvement of a party that agrees
to make compensation to against some risk. The compensating party or make indemnity
is called Insurer. Usually the insurers are insurance companies.
An example to illustrates what is insurer, Mr. Lim bought fire insurance from Lee
Insurance Company to protect his shop. Lee Insurance Company is the insurer.
The policy provided by our group is a life insurance policy. The insurer in the mentioned
policy is Aetna Universal Insurance Berhad.
Insured:
Insured is the one that seeks coverage and enter into agreement with insurers. Insured
has to send the proposal and consideration to the insurer in order for the contracts of
insurance to be made. For such contracts, there must be some element of uncertainty
about the events insured against and the insured must have an insurable interest in the
subject matter of the contract. Insurable interest is an interest (financial or otherwise) in
the subject matter of a contract of insurance, without the element of insurable interest
the contract is void.
An example to illustrates what is insured, Mr. Lim bought fire insurance to protect his
shop. Mr Lim is the insured.
The policy provided by us is a life insurance policy. There is a bit of twist here. Normally,
the person that buy an insurance is the insured, however for life insurance, one can buy
insurance on anothers life provided by Para 3 of schedule 8 in Financial Services Act
2013. In the policy provided by our group, the insured is Elaine Koo Bee San.

The Risk
The risk being insured, also known as subject matter being insured.
The policy provided by our group is a life insurance policy that is whole-life plan. The
particular insured chose the enhanced payor waiver of premium rider on her proposal
form for the whole-life coverage.
Thus the subject matter being insured is the life insured, which is Elaine Koo Bee
Sans life. That means Elaine will be cover by insurance upon her death, when
she becomes totally and permanently disabled or is diagnosed to have suffered
from any one of the critical illness/ undergoing of surgery. ( These are in
accordance with the terms and exceptions listed in the policies. )
Premium:
As it was mentioned, the insured have to give consideration to the insurer first for
coverage of subject matter in the contracts. This particular consideration is called
premium.
In Oxford Dictionary of Law, premium is defined as the sum payable by the insured to
the insurer under a contract of insurance.
The premium paid by Elaine Koo Bee San RM161.50 per term.