1. The insurance contract is an agreement between two parties, the insurer and the policyholder, in which the insurer promises to pay the benefits to the policyholder in the event of an uncertain future event or with regard to the policyholder. A betting agreement is an agreement whereby two persons who agree to express opposing views on the issue of an uncertain upcoming event agree by mutual agreement, according to the provision of the event that one receives a sum of money from the other, none of the parties who have other interests. In the case of an insurance contract, the insured must have insurable interest. With no insurable interest, it will be a betting agreement. This is what distinguishes an insurance contract from a bet. Any insurance contract requires, for its validity, the existence of an insurable interest. Insurance without insurable interest is nothing more than a betting contract and therefore not aeig.  “insurable interest,” the risk of loss to which the insured is likely to be exposed as a result of the insured event. (2) This common law view was revered by a series of Gaming Acts of 1710, 1835, 1845 and 1892, which were originally intended to limit credit for gambling and later for the cancellation of contracts by gambling and certain transactions related to those contracts.  There is an agreement between A and B that provides that if the Indian cricket team beats the Pakistan cricket team, A will pay Rs 1,000 and if the Pakistani cricket team beats the Indian cricket team, B will pay Rs 10. The deal is a gamble.
The statutory restrictions on the applicability of betting contracts were lifted by the repeal of these provisions by the Gambling Act in 2005, but these repeals did not, in themselves, restore the common law rule that generally opposed betting contracts. 1. In a betting contract, there are no insurable interests, while the insurance contract has insurable interestS A ILLUSTRATION – A and B are two F1 drivers. Ram Said, he`ll pay Shayam $1, 000 if A wins and Shyam said he`d pay Ram $1, 000 if A loses.