Kathmandu. One of the basic principles of insurance for both types of insurance, whether life or non-life insurance, is the principle of ultimate good faith. It believes that both the insurer and the insured should disclose information, information, facts and evidence related to insurance in a transparent manner with complete honesty towards each other.
Under this universally accepted principle, it is predicted that both sides are completely honest with each other. In the event of a breach of trust from one party, the other party assumes the legal right to breach the contract of the policy. It can even claim damages.
“The principle of trust is the principle that both the insurer and the insured should say or mention the truth and reality of the insured as far as they know about the insured life or thing, and the principle that not even the smallest thing can be deceived under any pretext,” reads the policy of universal trust. ’
In the event of breach of trust in insurance, the insurer can claim damages from the insured for trying to insure by fraudulently. It is believed that the insured is most aware of the risks associated with the assets he insures, and this is true. Therefore, based on the information provided by the insured or the insured holder through insurance proposal or confirmation, the insurer determines the sum insured and insurance fee by underwriting.
Therefore, while proposing life insurance, all the details mentioned in the proposal form should be disclosed by the insurer for the risk of the property while insuring the property, in a correct and double-meaning manner and without keeping any information confidential.
Often, while filling out a life insurance proposal form, the proposer suggests that the proposer does not disclose honestly regarding health and treatment, drug use and smoking, and even the agent does not have the option. There is dishonesty at the starting point of the insurance policy.
In this way, even if the insured succeeds in deceiving the insurer in evaluating the life insurance proposal by falsifying the details, the fact of the insurer’s lie at the time of death claim is easily revealed and the insured should be deprived of the claim of the insured. Can’t get paid.
In property insurance, the insurer refuses to pay compensation if the details of the risk involved in the property or goods offered by the insurance, any details that are to be disclosed related to the risk proposed asset are concealed.
Therefore, the principle of supreme good faith should be followed by the insured with complete honesty.
