LAW OF INSURANCE 2006 COURSE OUTLINE

Lecturer: Mr G Mupanga

Objectives of the Course

The objectives of the course are to study the following
 the general principles of law applicable to insurance in Zimbabwe
 the regulatory framework for the operation of insurance business in Zimbabwe

Recommended Literature
While Zimbabwean law of Insurance is now based on Roman Dutch Law, since the 2004
amendment, the influence of English Law remains significant. Students may therefore make
reference to any South African or English text on Insurance. The following texts are specifically
recommended:

Reinencke, van der Merwe , Nierkark & Havenga General Principles of Insurance Law Lexis
Butterworths Durban 2002
Davis The South African Law of Insurance Juta Cape Town 1993
Gertz & Davis Gordon & Gertz on the South African Law of Insurance
Birds J Modern Insurance Law Sweet & Maxwell London 1997
Clarke M The law of Insurance Contracts Clarendon Press Oxford 1997
Policies & Perceptions of Insurance : An Introduction to Insurance Law
Clarendon Press Oxford 1997
Nyapadi T J A handbook on Motor Insurance in Zimbabwe
MacGilivray & Parkington On Insurance Law

Legislation
The Consumer Contracts Act
Contractual Penalties Act Chapter 8:04
The Insurance Act Chapter 24:07
Insurance Amendment Act 2004
The Insurance Regulations SI40/1989
The Insurance and Pension Commissions Act Chapter 24:21
Labour Relations (HIV and AIDS) regulations SI202/98
National Social Security Act Chapter 14:04
National Social Security (Accident Prevention and Workers Compensation Scheme SI168/90
The Pension & Provident Funds Act Chapter 16:01
Pensions & Other Benefits Act
Road Traffic Act Chapter 13:11
Road Traffic Amendment Act No3/2000

Case Law and Journals

Students will be referred to relevant case law and other articles in each lecture
COURSE OUTLINE

Sources of Insurance Law

- Statutory law
- Common law
Historical development of insurance
Classification of insurance
- Indemnity
- Non Indemnity
Features of Insurance
- Insurance as a contract
- Insurance distinguished from other contracts
- Essentials of a contract of insurance
 Lawfulness
 Capacity to act
 minors
 women
 third parties
 Illegal immigrants
 corporate persons
 legality
 performance
 formalities
The object of insurance
- Legal basis of interest-insurable interest in indemnity and non indemnity insurance
- Limits of insurable interest
- Time when interest is required
- Examples of insurable interest under indemnity and non indemnity insurance
The risk
- Description of risk
- Object of risk/the subject matter of risk
- Legality of risk
- Causation
 Burden of proof
 Proximate cause
 Role of insured
- Alteration of risk
- Minimizing loss
Misrepresentation
- good faith
 uberrima fides and bona fides
 test
- non disclosure
 scope of duty to disclose
 contractual terms
 materiality of non disclosure
 test and proof
 effect of non disclosure
 remedies
Warranties and conditions
- Types of warranties
- Rights of insurer
- Breach of warranty
- Remedies for breach
Insurance intermediaries
- Insurer’s agents
- Insured’s agents
- Misrepresentation by agents
Formation of Contract
- Form
- The proposal
- Acceptance
- Temporary insurance
- Ordinary insurance
- Lloyds insurance
- Contents and interpretation
- Rectification
Premium
- Time of payment
- Duration
- Days of grace
Claims
- Notice of loss
- Proof of loss
- Fraudulent claims
- Arbitration
Enforcement
- Concept of loss and damage
- Quantification of loss and damage
- Imputation of benefits
Subrogation
- Definition
- Scope of subrogation
- Rights of insured
Rights and duties of third parties
- Types of contracts
- Cession
 Formalities
 Competing cessions
- Assignment
Double insurance, Over insurance Reinsurance
- Definition and distinction
- Effects
Termination
- Payment
- Reinstatement
- Termination of obligations
Types of insurance
- Statutory insurance
 Third party motor insurance
 National social security
 Workmen’s compensation
- Short term insurance
- Long term insurance
Regulation of the insurance industry
- Registration
- Control