DISCLOSURES AS PRINCIPLE OF INSURANCE





DISCLOSURES AS PRINCIPLE OF INSURANCE
The principle of Uberrimae fidei applies to all or any kinds of insurance contracts and is a very basic and primary

principle of insurance. According to this principle, the insurance contract should be signed by both parties (i.e
insurer and insured) in absolute good faith or belief or trust.
The individual getting insured must willingly disclose and surrender to the insurer all relevant complete true
information regarding the niche matter of insurance. The insurer's liability is voidable (i.e legally
revoked or cancelled) if any facts, about the niche matter of insurance are either omitted, hidden, falsified
or presented in a wrong manner by the insured..
The principle forbids either party to an insurance contract, by non-disclosure or mis-representation of a
material fact, which he knows or ought to understand, to draw another in to the bargain, from his ignorance of the
fact and his believing the contrary. The duty of the utmost good faith is implied in insurance contracts
since they're entered into by parties who have different use of relevant information. In this, they
differ from contracts of sale to which the maxim caveat emptor (let the customer beware) applies.
Although the duty rests upon both parties, it's the duty of the proposer which needs to be discussed in some
detail for he normally has the benefit of knowing the majority of the particulars relating to the subject-matter. Until

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