Post by Sapphire Capital on Aug 14, 2008 20:51:42 GMT 4
Disclosures and Concealments: Legitimate Reflections on Insurance Contracts
A. V. Narsimha Rao
The Icfai University
The Icfai University Journal of Insurance Law, Vol. VI, No. 3, pp. 26-40, July 2008
Abstract:
The insurance contracts are the contracts of good faith. The parties to the contracts, the insurer and the insured are bound to act with good faith and make disclosures about the risks that are covered under the policies and other related matters. The obligation to be fair and true will continue throughout the contract. The insurer designs the proposal forms and questions to get the required information from the insured. The insured has an obligation to answer the questions with good faith and should not conceal any information which is relevant or which influences the decision of the insurer. Similarly, the insurer has a responsibility to provide the information relating to the insurance product they sell and the claims settlement. Non-disclosure of the information or disclosing the wrong information may amount to concealment. The concealment of information with a bad intention may result in misrepresentations and fraud which can be a ground to avoid the contract.
papers.ssrn.com/sol3/papers.cfm?abstract_id=1160079
A. V. Narsimha Rao
The Icfai University
The Icfai University Journal of Insurance Law, Vol. VI, No. 3, pp. 26-40, July 2008
Abstract:
The insurance contracts are the contracts of good faith. The parties to the contracts, the insurer and the insured are bound to act with good faith and make disclosures about the risks that are covered under the policies and other related matters. The obligation to be fair and true will continue throughout the contract. The insurer designs the proposal forms and questions to get the required information from the insured. The insured has an obligation to answer the questions with good faith and should not conceal any information which is relevant or which influences the decision of the insurer. Similarly, the insurer has a responsibility to provide the information relating to the insurance product they sell and the claims settlement. Non-disclosure of the information or disclosing the wrong information may amount to concealment. The concealment of information with a bad intention may result in misrepresentations and fraud which can be a ground to avoid the contract.
papers.ssrn.com/sol3/papers.cfm?abstract_id=1160079