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Law of Insurance Contracts

Chapter 30



In the event of insured loss, the insurer discharges its duty under the contract of insurance by payment or, in the appropriate case, reinstatement.1 The amount of payment required has been discussed in Chapter 28. This chapter is concerned, first, with the time and legal nature of payment (30-2), the mode of payment (30-3), and the identity of the payee (30-4). These matters are determined primarily2 by the contract of insurance, subject to general rules of law governing payment and for contracts/renewals made on or after 4 May 2017 also by section 13A of the Insurance Act 2015. This chapter is also concerned with payment by mistake (30-5), compromise payment (30-6), and, last but not least, the effect of non-payment (30-7 ff).

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