What is the role of conditions in an insurance policy?

The role of conditions in an insurance policy is to clearly outline the obligations of both parties involved in the contract: the insurer and the insured. Conditions specify what each party is required to do or refrain from doing in order for the policy to remain valid. For example, the insured may have the obligation to pay premiums on time or to report claims promptly, while the insurer might have conditions related to providing coverage or handling claims.

By delineating these responsibilities, conditions ensure that both parties understand their duties and the expectations set forth in the contract. This clarity helps prevent disputes and enhances the enforceability of the policy, as both parties are aware of what is required of them throughout the duration of the insurance coverage. Understanding these obligations is crucial for maintaining the contractual relationship and the protection that the policy offers.