Which of the following is the correct statement?

A. Life insurance contract is a verbal contract through custom and usage

B. Life insurance is a legally enforceable contract between the insurer and the insured, as per the Indian Contract Act, 1872

C. Verbal contracts, like life insurance, are enforceable

D. Life insurance, like a wagering contract, is a business practice

Answer: Option B

Solution(By Examveda Team)

As per the Indian Contract Act, 1972, life insurance contract is a legally enforceable contract between the insurer and the insured.