Expert please answer this question =? Explain the ''Utmost good faith'' Principles of insurance?
Dear Student,
Utmost Good Faith is the first principle of Insurance. All insurance contracts are based upon mutual trust and confidence between the insurer and the insured. It is a condition of every insurance contract that both the parties insurer and the insured must disclose each fact and information related to insurance contract to each other. For example, if a person did not disclose his disease before insurance company, when getting insurance, then this principle is violated.
Regards
Utmost Good Faith is the first principle of Insurance. All insurance contracts are based upon mutual trust and confidence between the insurer and the insured. It is a condition of every insurance contract that both the parties insurer and the insured must disclose each fact and information related to insurance contract to each other. For example, if a person did not disclose his disease before insurance company, when getting insurance, then this principle is violated.
Regards