All risks and uncertainties causing risk in foreseeable future, at time of agreement must be disclosed.Although the suppression could happen through mistake, without any fraudulent intention, yet the insurer and underwriter can be deceived and the policy can be void.

The keeping back such circumstance or information is a fraud a breach of utmost confidence and therefore the policy can be void.The insurer and underwriters work and proceeds upon confidence that assured does not hold back or hide or omit to disclose any facts and circumstance and knowledge to mislead the insurer and underwriter into a belief that the circumstance does not exist.The insurer and underwriters trusts to representations of insured.Knowledge of assured: the special facts upon which the contingent chance depends and are to be considered most commonly are in the knowledge of the assured only.Uncertainty hence speculation: Insurance is a contract dealing with uncertainties and thus involves an element of speculation.With some modifications in view of changes in business of insurance these can be described as follows: In any case it can involve disputes and litigation when a situation of claim under insurance cover arises.ĭ uty of true disclosure by the assured is well established centuries ago. Any false statement or disclosure or withholding of relevant information will cause breach of utmost good faith and in that case insurance contract can be void. It is based on utmost good faith and uberrima fides, according to which insured must be honest in his disclosures. However, on part of insurer also there was condition of good faith to disclose terms and conditions to the proposer for insurance. So far insurer was concerned, he has mostly standard terms and conditions which are guided by prevailing law and trade practices. In those lesson, it was learnt that any contract of insurance is based on utmost good faith on part of insured. were compulsory with some options for selection of some of subjects.Īuthor recalls that in class IX itself in the subject of ‘commercial practice’ and banking and finance there were lessons about contracts of insurance- and brief studies were provided about general insurance, fire insurance, burglary and theft insurance, life insurance etc. Other subjects of languages, mathematics, science, art and craft, humanities etc. In view of that there was more emphasis on subjects of commerce which included compulsory subjects of Commercial Practices and Book-keeping and accounting, there were options in some other subjects and author choose banking and finance ( other subjects were typing and economics). Author choose “commerce” as stream of such studies. Contract for insurance is based on utmost good faith / uberrima fides which imposes a duty of disclosure on the insured with regard to material facts.Īuthor recalls – studies of commerce from class IX:įrom class IX selection of specified stream of studies started.

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