How well does insurance contract regulation work Research Paper

How well does insurance contract regulation work - Research Paper Example An insurance policy is documented properly and the insured is handed over a contract which signifies the terms and conditions under which the insurance policy will be processed and the circumstances under which the financial compensation will be carried out1. Insurance has gained wide popularity after big global incidents and financial crises such as the 9/11 catastrophe and the financial meltdown of 2008/09. These events have spread a wing of insecurity among people in many areas of their lives, be it their life, their finances, their property or their relatives. This has escalated the demand of insurance all over the world and insurance companies have shown fruitful results in their financial statements. To have a clear and comprehensive description and analysis of insurance and its operation, the economics of insurance have to be taken into account and the understanding of insurance law and insurance contract regulation and its working is essential2. As every law in the world, there is a separate and credible law for insurance. Insurance law is a name designated towards the acts of law covering insurance comprising of insurance claims and policies. It contains all the principles of insurance including claim technicalities, compensation conditions, policy termination circumstances, indemnity, so on and so forth. Insurance law is based mainly on Insurance Contracts Regulations 1985 which have been established using the Insurance Contracts Act 1984. The presence and importance of insurance contracts regulations is utmost and considering a serious and delicate contract like insurance, a set of stringent regulations based on solid laws must be existent and implementable3. Insurance contracts regulations assist in numerous ways to the insurer as well as the insured and it created a specific, planned, professional progress way for the insurance policy throughout its tenor. As mentioned above about the