Principle of Utmost Good faith in Insurance.

Principle of Utmost Good faith in Insurance.

“Uberima fides” in Latin denotes “Utmost Good Faith”. Insurance policy is governed by this principle.

All material facts related to the insured person should be disclosed in person at the inception of the policy. Material facts include the previous & current medical history of the insured persons, income details of the policyholder and other relevant questions being asked in the proposal form.

The contract of insurance is purely based on the disclosure made by the policyholder to the insurance company and if there is any risk due to their current medical condition, then the company will give
counter offer by way of increasing the premium and waiting period conditions for certain pre-existing ailments.

By doing so, the policyholder is clearly aware of the terms of the contract and also it will help to understand the waiting period clause along with the scope of cover in detail during the policy
tenure.

The relationship between the insurer and the insured is contractual and is a legally enforceable agreement which protects both parties.

Venkataramana C
Certified Financial Planner
Growth By Discipline. Helping You Get Where You Want To Be. Get in touch today!
Call 99520 19605
.
.
.
.
.
#financialplanning #wealthcreation #mutualfunds #championwealthcreators #investmentmanagement #protectionsolutions #riskmanagement #behaviourbiases #taxsaving #retirementplanning #criticalillness #healthinsurance #taxsavings #childrenfund #retirementplanning #wealthmanagement #assetmanagement #investments #investmentmanagement #investing #risk #investment #insurance #health #growth