The insurance contract or agreement is a contract in which the insurer promises to pay benefits to the insured or, on his behalf, to a third party when certain defined events occur. Subject to the Fortuity principle, the event must be uncertain. The uncertainty can be either when the event will occur (for example. B in life insurance, the date of death of the insured is uncertain), or whether it will occur (for example. B in fire insurance, whether or not there is a fire).  Most insurance contracts are indemnification contracts. Compensation contracts apply to insurance for which the damage suffered can be measured in money. All insurance contracts are based on the concept of uberrima fides or doctrine of the highest faith. This doctrine emphasizes the existence of mutual trust between the insured and the insurer. Simply put, when applying for insurance, it becomes your duty to disclose your relevant facts and information to the insurer. Similarly, the insurer cannot hide information about the insurance coverage sold.
In the absence of one of these essential elements of a contract, it is a void contract that is not enforced by any court. For example, most contracts signed by a minor are void contracts because they are not legal. A countervailable contract is a contract that may be cancelled by one party if the other party is in breach of the treaty or because essential information contained in the contract was omitted or false. Instead, the party entitled to nullity may choose to enforce it.