An insurance contract may come to an end or terminate in any of the following ways:-
1. Payment of Indemnity or the sum assured in the event of total loss. In the case of
2. partial loss, reinstatement does not terminate the policy.
Mutual agreement: The parties may at any time agree to terminate the contract at the instance of the insured. In property insurance, the insured becomes entitled to the surrender value of the policy. In life policies, if the insured has been a bona fide insured for 3 years he is entitled to 75% of all premium paid inclusive of any bonuses and interests payable.
3. Breach of condition or warranty: The insurer is entitled to apply for cancellation of the policy if the proposer breached a condition or warranty to procure the policy e.g. Misreprentation or non-disclosure of material facts.
4. Lapse of time: Indemnity contract or property Insurance lapse after one year. It is the duty of the insured to renew cover.
5. Operation of law: These are circumstances which render the maintenance of the policy impossible e.g Winding up or Liquidation of the insurer.
6. Sale of the subject matter

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