A contract of life insurance is a contract of utmost good faith technically known as uberrima fides. The principle of disclosing all material facts is embodied in this important concept which applies to all form of life insurance. It becomes the duty of the proposer to inform the insurer of everything likely to affect the judgement of the insurer, however unimportant it may seem to him/ her (the proposer).
Hence, the proposer should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non- disclosure of facts/ information which is material to acceptance of risk, or fraudulent information in any document leading to the acceptance of the risk will render the insurance contract null and void.
Hence, it is quite important that the policyholders and his dependants provide the correct and full information to secure the precious benefits of the insurance policy for his near and dear ones.
Hence, the proposer should ensure that all questions in the proposal form are correctly answered. Any misrepresentation, non- disclosure of facts/ information which is material to acceptance of risk, or fraudulent information in any document leading to the acceptance of the risk will render the insurance contract null and void.
Hence, it is quite important that the policyholders and his dependants provide the correct and full information to secure the precious benefits of the insurance policy for his near and dear ones.
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