Insurance is used for protection if the existing risk is proven. But the risk is based on betting contracts. 1. A betting agreement is an agreement for the payment of money or money worth of an uncertain event. Under an insurance policy, the insurer is required to pay the money when a loss occurs, but is not required to return the premium. However, in the case of a betting contract, the premium paid will be refunded to the winner in addition to the prize money. Insurance contracts have the general agreement of the company and are encouraged, as they benefit the Community as a whole, while betting contracts are not approved by the company. Under Maltese requirements for agreements, the doctrine of pacta sunt servanda generally applies, unless specific legislation is adopted against the species. It is a principle of international law that means „promises must be kept.“ [1] A case of insurance (except death) against the risk for which the insurance is taken out may or may not take place. The event will take place. and the beneficiary of the contract is not compensated for the losses caused by such an event.

In trying to discuss the difference between insurance contracts and bets, it is important to look briefly at the historical context from which the insurance companies originated. During the premature period, there was no clear separation between insurance and betting. Insurance was a risk transfer system in which the insured passed the risk on to the insurer in exchange for payment of a sum of money. As long as there is a risk of gambling, insurance contracts and bets work the same way. However, division has become indispensable when insurance contracts acquire clear and independent characteristics. 5 insurance contracts are indemnification contracts. They are trying to reintegrate an insured into the same tax position that he or she would have had if the uncertain event had not occurred. In the case of Leopard/Excess Insurance Co Ltd, 6, the court held that an insured person was not entitled to more than the current financial situation and should not benefit from it.