At first, it is clear that there are significant differences between insurance and betting, one of the main differences between insurable interest rates. When the concept of insurance came, it was considered one and the same as a wagering agreement, although as the subject developed the concept of insurance differs from that of betting. Today, they may love each other, but they are distinctly separated. The most important differences between insurance and salary are emphasized. [2] A betting contract is a blind contract and there is no scale to accurately assess the risk. On the other hand, all insurance contracts are based on a scientific and actuarial calculation of risks and the premium is calculated taking into account all the circumstances of the risk. and the beneficiary of the contract is not compensated for the losses caused by such an event. In trying to discuss the difference between insurance contracts and bets, it is important to look briefly at the historical context from which the insurance companies originated. During the premature period, there was no clear separation between insurance and betting. Insurance was a risk transfer system in which the insured passed the risk on to the insurer in exchange for payment of a sum of money. As long as there is a risk of gambling, insurance contracts and bets work the same way.
However, division has become indispensable when insurance contracts acquire clear and independent characteristics. 5 insurance contracts are indemnification contracts. They are trying to reintegrate an insured into the same tax position that he or she would have had if the uncertain event had not occurred. In the case of Leopard/Excess Insurance Co Ltd, 6, the court held that an insured person was not entitled to more than the current financial situation and should not benefit from it. This is not the case for betting contracts, there is no obligation to compensate. In the case of the event, a fixed amount is due. A small bet is essentially a game of chance 7 For an insurance contract to exist, it is imperative that an agreement be available, like most contracts. Similarly, in a betting contract, there is an offer and acceptance and consideration, but the deal is 56 Guido Rossi, insurance in Elizabethan: The code (Cambridge University Press, 2016) Pp 10 7 [1979] WLR 512 Stephen Hicks, Insurance Contract Requirements (2017) accessed at pocket sense.com/insurance-contract-requirements-6678421.htm on 27th August, 2019.
While some people look at these two concepts and try to use them interchangeably, they are different and focus on specific circumstances. One of the most important differences between insurance and bets that have been identified is that the insurance tries to guarantee their position against a premium with an insurer. It is thus established that they would suffer losses in particular circumstances, but that they would be compensated by the insurer. Most of the time, that would not happen. On the other hand, bets must appear unstablely in the agreement itself and, as soon as the contractual event occurs, the positions of all parties will be changed. Differences between an insurance contract and a betting contract. Insurance contracts have the general agreement of the company and are encouraged, as they benefit the Community as a whole, while betting contracts are not approved by the company. 2.
In the case of a betting agreement, no insurable interest is required. compensation and nothing other than compensation is provided as part of insurance other than the accident of life or the person; it is not a gamble. The amount paid under an insurance contract represents the actual harm suffered; Whoever wins a bet has returned his bet, with a few additions. Although insurance contracts may violate a particular law if they are not properly authorised, they are enforceable in Maltese courts if they fulfil all the characteristics of the insurance.