Is general insurance a contract?

Yes, general insurance is a contractual agreement between an insurance company and the policyholder. In this contract, the insurer agrees to provide financial protection and coverage for specific risks in exchange for the policyholder paying a premium. The terms and conditions of the contract, including coverage limits, deductibles, and policy terms, are outlined in the insurance policy document, which serves as the legal agreement between the two parties. This contractual relationship ensures that the policyholder receives the agreed-upon benefits in the event of a covered loss or claim.