FUNDAMENTAL PRINCIPLES GOVERNING GENERAL  INSURANCE CONTRACTS

FUNDAMENTAL PRINCIPLES GOVERNING GENERAL INSURANCE CONTRACTS

 The goal of the insurance business is to protect the financial value of one's property or life

  Person.  The insurer agrees to make up for any loss through an insurance contract

  Loss of insured property or life (as this may be the case) which may occur

  Consideration time for small premiums paid by the insurer.

  In addition to the above requirements of a valid contract, the insurance contract is subject to

  Additional principles.  These are:

  The very principle of goodwill

  Principle of insurable interest

  Defective principle

  The principle of subrogation

  Contribution theory

  The principle proxies for a reason

  These special features are based on and applied to the basic principles of law

  For all types of insurance contracts.  These principles provide guidance based on it

  Which insurance contract is carried out.

  A clear understanding of these principles is therefore essential for clarity

  Assists in interpretation of insurance contract and proper termination of contracts,

  Easy award to claim settlement, enforcement of rules and judgments in case Controversies.

Theory of supreme good faith is to be a positive duty proposal to declare the content of all the facts, clear and fully, the definition of all the facts for the risk, or not. This principle of insurance is derived from the principle of "UberMyimai feeds" essential for a valid insurance contract. It suggests that in the insurance contract, the parties related to the contract must be rely on each other's integrity. Usually the principle of "Cavet Ammire" operates the formation of the commercial agreement, which means that 'let the buyer be cautious'. The buyer is responsible for the investigation or service and their facilities and tasks. Parties do not have to disclose the information, which is not asked for. But in case of insurance, the products sold are abstract. The necessary facts here are related to the proposer, it is very personal and just known it. The law has to impose more duty on the parties for the insurance contract than people involved in it in the commercial agreement. They need to be very good faith in each other, which indicate full and true explanation of all the physical facts by both parties on the contract. The term "physical fact" refers to each facts or information, which influences the decisions and premium amounts in terms of determination of the risks involved. Advertising terms of physical facts determines the policy of policy. Any hiding of the physical facts can be negative reactions on the performance of the insurance company's general business. Do not disclose any fact that can be inadvertently on the part of the insurance company. Soh also such agreement is canceled on the insurer's option and it can refuse any compensation. Any of the physical facts is intentionally believed to be hidden. In this case also policy is considered void. The deliberate declaration is a fraud and non-purposeful amount of advertising void contract. For example, ads in life insurance, income, health, accommodation, family details, business and insurance plans. In the same way, in the case of property or general insurance, the contents related to the details of this type of properties (car), especially in the maritime case, insurance company can not always be in a position to monitor the ship, insurance company So all the facts on the side of the insurer are voluntarily to be revealed.

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