1. The insurance contract is an agreement between two parties, the insurer and the policyholder, in which the insurer promises to pay the benefits to the policyholder in the event of an uncertain future event or with regard to the policyholder. A betting agreement is an agreement whereby two persons who agree to express opposing views on the issue of an uncertain upcoming event agree by mutual agreement, according to the provision of the event that one receives a sum of money from the other, none of the parties who have other interests. Neither party has control over what is happening in one way or another. If one of the parties takes care of the event, it will interfere with the essential element of the water that is CHANCE. BIRDWOOD J in the case of Dayabhai Tribhovandas v Lakshmichand stated that if the result is in the hands of a party, then there is no betting agreement. Under this essential betting agreement, events based on qualifications are excluded from the betting agreement. “This section is not considered illegal for a subscription, contribution or agreement, a sign, a prize or a sum of five hundred rupees or more, to subscribe or sign or pay money attributable to the winner or winner of a horse race.” Under Section 30 of the Contracts Act of 1872, betting agreements cannot be applied in any court because they have been expressly annulled. No legal action can be filed with the intention of recovering anything claimed to be won in a bet or non-compliance with a party to stick to the results of the bet. There is an agreement between A and B that provides that if the Indian cricket team beats the Pakistani cricket team, A pays 1000 Rs and if the Pakistani cricket team beats the Indian cricket team, B will pay 10 times. The deal is a gamble. Betting agreement is a contract to pay a certain amount to the winner, while the insurance contract is a compensation contract.
Only the loss will redeem. But life insurance contracts are not compensation contracts. Simply put, a betting agreement is an agreement whereby money or money is worth money or money, from one person to another on what happens or not happen to an uncertain future event can take many forms in real life, but the common characteristics of a bet would be found in any form. In the case of Narayana Ayyangar v. Vallachami Ambalam, the Chit Fund cannot be a betting agreement, in this case was detained. As in the Chit-Fonds, there is a chance of rain, but there is no chance of losing, since the actual amount of the subscription is refunded.