Multiple choice

Which of the following is the correct statement?

  1. Life insurance contract is a verbal contract through custom and usage.

  2. Life insurance is a legally enforceable contract between the insurer and the insured, as per the Indian Contract Act, 1872.

  3. Verbal contracts, like life insurance, are enforceable.

  4. Life insurance, like a wagering contract, is a business practice.
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

As per the Indian Contract Act, 1972, life insurance contract is a legally enforceable contract between the insurer and the insured.

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