What is Prescribed Contract?
Prescribed Contract is The Insurance Contracts Act (1984) has set requirements for six classes of personal insurance, called the Prescribed Contracts. The Act prescribes the events against which an insurer must provide cover by way of a minimum required standard. While Insurers are free to provide more than standard cover and can even provide less than standard cover, the Insured must be notified of this in writing before entering into that particular contract of insurance. Home insurance, private motor insurance and personal accident insurance are all types of prescribed contracts.