An insurance contract is a contract resulting from a free agreement between an insurer and a subscriber. It allows the beneficiary to receive an indemnity in the event of the occurrence of a risk guaranteed by it, in return for the payment of an insurance premium or contribution.
Signed by both parties (insurer and insured), the insurance contract sets out the nature of the guarantees and their extent.
More on Insurance Contract
The insurance contract defines the guarantees and serves as a reference for the beneficiary and the insurance company. A home multi-risk insurance contract must include civil liability and guarantee the risk of fire, theft, water damage, ice breakage, natural disasters… In the case where deductibles are provided for in the contract, it must be indicated if they are calculated as a percentage or fixed price.
The insurance contract also indicates exclusions: cases that do not allow insurance to be triggered. The law imposes certain exclusions such as a claim caused voluntarily by the insured in order to receive compensation. Other exclusions are determined by the insurer such as risky occupations, sports at risk and aggravated health risks.
An insurance contract is concluded for a fixed term and renews each year automatically by tacit renewal, on the anniversary date of subscription. The insurer and the insured have the option of canceling it. In this case, the cancellation must be done in accordance with the conditions of the contract.
To purchase insurance, you can contact:
- a bank
- an insurance company
- a mutual
- an insurance agent
- an insurance broker
- others: supermarket, car manufacturer…
Before signing a contract, make sure to check if the guarantees it contains are not already included in one of your current contracts. This saves you from accumulating collateral and therefore paying for coverage you already have.
The word of the broker
There are 2 categories of insurance contracts: life and health insurance and damage insurance.
Personal insurance guarantees the risks associated with a person such as a personal injury, an illness, a death or a disability. This type of contract can be subscribed individually or collectively. Some of them allow the insured to build up capital by saving: this is the case for life insurance.
Damage insurance allows the insured to receive compensation following the occurrence of a claim. It includes a liability or professional liability cover and a property protection (vehicle damage, coverage of movable or immovable property).