In fact, although a betting agreement is non-applicable and unenforceable, it is not prohibited by law. That is, betting agreements are non-friendly, but not illegal. However, in the states of Gujarat and Maharashtra, betting agreements were declared illegal. In the secular language, the term bet is a gamble. The meaning of the dictionary of the black law of the term bet means something risky, such as a sum of money in the event of an uncertain event, where the parties have no essential interest other than the mutual chance of “winning or losing”. Therefore, if two parties enter into an agreement on the condition that the first party pays a fixed amount of money to the second part on the events of an uncertain future event and that the second party pays the first part if the event does not occur, it is referred to as a betting agreement. An interesting interpretation of this case was that, although all illegal agreements are nullified and unenforceable, not all non-legal agreements are illegal or immoral or contrary to public order. Although all betting agreements are null and private and are not yet applicable in a betting agreement, it is therefore important to verify whether such an agreement is also illegal under Section 23 of the Indian Contract Act, in order to verify its legality. Illustration A cricket match starts in Delhi between India and Australia. If India wins the match, Pallav agrees to pay Nishant Rs. 2000, while if Australia wins the match, Nishant agrees to pay the Rs. 2000 in Pallav. For an agreement to be a betting agreement, the purpose of the agreement must be subordinated to an uncertain event.
In the case of Jethmal Madanlal Jokotia v. Nevatia-Co (1962), it was found that a bet usually relates to a future event, but it may also be an event that has occurred in the past, but the parties were not aware of their outcome or the date of their action. An insurance contract is a compensation contract that protects the interests of a party from damages and also has an insurable interest.