The mutual agreement is called the insurance Contract on which the insurer ensures the insured to help him/her in order to recover from the loss. An agreement whereby, for definite respect, one party agrees to pay the other for a loss involving a specific matter as an outcome of the amount of chosen risks.
Insurance contract is one-sided, implicating that simply the insurer can make lawfully enforceable undertakings in the contract. It is not required for the insured to fee the premiums, but if the insured has funded the premiums and followed definite other elementary provisions then the insurer must recompense the profits under the agreement or contract.
Insurance contract is usually measured contract of connection as the insurer takes up the insurance contract and the insured has no ability to make any physical changes to it. That means the insurer is to bear the burden to keep the contract as promised.
In an Insurance contract, the names, addresses are recorded from both the insurance company and the insured or the policy holder. Insurance limit, area covered by the insurance, declaration, conditions, definitions of important terms are parts of an insurance contract.
Insurance Contract is the proof of that the insurer is promising the insured to compensate if any trouble or financial loss happens to come that is uncertain.