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Aside from the essential requisites of an ordinary contract such as consent, subject-matter and
consideration, an insurance contract must have the following elements:
1. The insured must possess an interest of some kind susceptible of pecuniary estimation, known as insurable interest;
2. The insured is for a risk of loss through the destruction or impairment of that interest by
the happening of designated perils;
3. The insurer assumes the risk of loss;
4. Such assumption is part of a general scheme to distribute actual losses among
a large group of persons bearing somewhat similar risks;
5. As consideration for the insurer’s promise, the insured makes a ratable contribution
called premium, to a general insurance fund.
UBERRIMAE FIDES CONTRACT The contract of insurance is one of perfect good faith not for the
insured alone, but equally so for the insurer. It requires the parties to the contract to disclose
conditions affecting the risk of which he is aware, or material fact, which the applicant knows, and those, which he ought to know.
consideration, an insurance contract must have the following elements:
1. The insured must possess an interest of some kind susceptible of pecuniary estimation, known as insurable interest;
2. The insured is for a risk of loss through the destruction or impairment of that interest by
the happening of designated perils;
3. The insurer assumes the risk of loss;
4. Such assumption is part of a general scheme to distribute actual losses among
a large group of persons bearing somewhat similar risks;
5. As consideration for the insurer’s promise, the insured makes a ratable contribution
called premium, to a general insurance fund.
UBERRIMAE FIDES CONTRACT The contract of insurance is one of perfect good faith not for the
insured alone, but equally so for the insurer. It requires the parties to the contract to disclose
conditions affecting the risk of which he is aware, or material fact, which the applicant knows, and those, which he ought to know.
