Introduction: Insurance Law

One of the key issues pertaining to Insurance Law that first bump into your mind will be, the insurance package that we buy, and we want to preserve our rights from being cheated by those agents. That is the layman term I can say.

But in our context of insurance law, we shouldn't just think of how we can have our a**e taken care, but at the same time, we should go to the core of why is Insurance needed. At least, for the lawyers, they know they are valued for their efforts in studying this law.
First and foremost is simple, the reason we need law is that, we wanted to counter the risk that we are having. They are plenty of risks out there, in the scope of just human rights and life (nothing to do with any financial or etc. stuff), is that even staying in a house can be a risky thing. You never know that with the Will of God, something may happen to you, isn't it?

Thus as for that, and as humans get more complicated ever since the Mesopotamian civilization, humans become more skeptical and coward. I don't mean coward, as those really coward, but in the sense, the worry more things (even unneccesary stuffs). Thus, some brilliant guys thought of, why not given some protection to this scaredy fellows, and earn some of it. Thus, two group of people discover their own products but gets more complicated First, is to give me some money, I'll pay you back and insured your losses if anything happens. With the traditional whole life insurance, where 100% of the money will be used to insured your losses, some insured people take advantage. And as the human cycle life go, you take it, I'll take it back. Thus, this business idiots come out with the term of insurance packages which include certain investment scheme, and different types of rather confusing insurance. And there you go, the first story done.

As the story goes by, the second group of people came in and still exist even until now. They will take money for you, and provide you personal protection. Not in terms of your health or house or anything. But what is it then? Oh, it is called Gangsters' Insurance (GI), whereby you pay the money to take care of your well-being and your house, even you don't want, you are forced to in their territory. Thus, their most developed products include GI JOE. Nah, just for the fun of writing.

Alright back to the serious topic, from our Malaysian Insurance Act 1996 quoted:
" An act to provide new laws for the licensing and regulation of insurance business, insurance broking business, adjusting business and financial advisory business and other related purpose "

This act is important as insurance is not something that is done as with goodwill, but definitely with a cost. There are never free lunch in this world we should know that. With that, this business propels to make profit especially on how those actuaries had worked so much to help those insurance companies earn their biggest deal. With many types of insurance, the general common ones are life insurance, marine insurance, fire insurance, accident insurance, motor insurance and aviation insurance.

And looking on the LAW side of it, which is why we learn this law, is that, CONTRACT. This word is common but very meaningful in a lot of ways, especially in law. Definitely, how is an insurance contact is made upon?
Answer is: A contract of insurance is a contract whereby one person, called the insurer, agreesto indemnify another person, called the insured, against a loss which may arise upon the occurrence of the particular event.

And with that contract, it will come in attached with information on that contract called as a 'policy' or in layman terms, terms and conditions.

With that 'policy', it will define the types of insurance that is covered. And as mentioned, payment have to be made, and that payment is called 'premium'. With the losses that is going to be insured as stated in the policy, is the 'risk'.

And this shall be the introduction of Insurance Law before we go on further.