What is the purpose of the policy conditions in an insurance contract?

The purpose of policy conditions in an insurance contract is primarily to stipulate the circumstances under which claims can be made. These conditions set the framework for how and when the insured can seek compensation for covered losses. They describe specific events or criteria that must be met for a claim to be valid, thus ensuring that both the insurer and insured have a clear understanding of their rights and responsibilities in the claims process.

Policy conditions may include details such as how to notify the insurer about a loss, the timeframe within which a claim must be submitted, and any documentation required to support a claim. By providing this clarity, policy conditions help prevent disputes between the insured and the insurer regarding claims, making the process smoother and more transparent.

While the rights of the insured and the obligations of the insurer are important components of an insurance contract, the primary function of policy conditions specifically focuses on claims making and the terms under which those claims will be assessed. Similarly, defining the overall structure of the insurance contract is a broader aspect that encompasses many elements beyond just the conditions related to claims.