Wagering contracts under the Indian Contract Act 1872 are voidable contracts.
It shall further include wager, wagering contract, totalisator and pool transaction in relation to any game or sport but shall not include a lottery or betting on a horse race when such betting takes place-
To constitute a wagering contract there must be proof that the contract was entered into upon terms that the performance of the contract should not be demanded.
The blurring of wagering contracts (16) with insurance contracts became prevalent in eighteenth-century England.
In spite of these statutes, English common law enforced wagering contracts outside of the context of insurance until 1845.
By passing these statutes and providing an implicit definition of what constitutes insurance, the English Parliament made an important distinction between an insurance contract and a wagering contract.
51) Thus, a person is not permitted to seek insurance on himself based on collusion with others when really the transaction is a mere disguise for a wagering contract.
not always easy to distinguish illegal wagering contracts
from other 'aleatory' contracts that have a legitimate commercial or other purpose and are not considered contrary to public policy.
Such consent is persuasive, "further vindicat[ing] the public policy designed to prevent wagering contracts
on which the insurable interest rule is grounded" (Dou, Chem.
The public policy against wagering contracts
and use of life insurance policies as a means for speculation for profit on people's lives dictates that there must be a valid insurable interest in any issuance of a life insurance policy.