Insurance:
It is defined as a precautionary measure against risk. It takes the form of a contract between an insurer and insured person. The contract relates to the transfer of specific risks in exchange for the payment of consideration known as a premium.
Insurance contract:
The case of Lake v Reinsurance Co Ltd is the locus classicus for insurance contracts and defines such as “a contract between an insurer and an insured whereby the insurer undertakes in return for the payment of a premium to render to the insured a sum of money or its equivalent on the happening of a specified uncertain future event in which the insured has an interest”. In the case of Lucena v Crawfort Insurance is defined as a contract by which the one party in consideration of a price paid to him adequate to the risk becomes security to the other that he shall not suffer loss, damage or prejudice by the perils specified to certain things which may be exposed to them. Reinecke defines it as an agreement between the insurer and the insured of and undertaking to perform premised upon the payment of a certain sum determined by the insurer in exchange for the assumption of risk on behalf of the insured.
Consumer:
These are people or organisations that purchase products or services. The term also refers to hiring goods and services. Simply put consumers utilise goods and services for their benefit.
Consumer contract:
In terms of the Consumer Protection Act it is a contract for the sale or supply of goods or services or both, in which the seller or supplier is dealing in the course of business and the purchaser or user is not, but does not include-
- a contract for the sale, letting or hire of immovable property or
- contract of employment
The definition above was also given in the case of Radar Holdings v Eagle Insurance
Consumer protection:
A well-known author Churchill articulated that consumer protection consumer protection is associated with client education, legal compliance to statutory guidelines and a comprehensive system of assessing and resolving consumer grievances.
Subrogation: This is where one party (the insurer) exercises their rights to pursue a third party in relation to a claim usually on the basis that the insurance company has indemnified the insured in respect of the specified uncertain future event that would have been caused by a third party. The insurance company then takes steps recover the money that the insurer would have paid out to their insured client.
