Page 57 - Ebook IC S01

Survey And Loss Assessment IC-S01

In case of life insurance contract the insured is not obliged to disclose any fact at the

time of renewal. But in case of nonlife insurance contract the insured must disclose

the material changes that have taken place since the time of last contract.

There duty of disclosure of material facts rests on both insurer and the insured. The

insurer must fully disclose the terms and conditions of the policy whereas the

insured must fully disclose the facts concerning the property to be insured. IRDA has

given an option to the insured in form of free look period wherein if the policyholder

is not satisfied with the terms and conditions of the policy he may withdraw the

policies within 15 days of the receipt of the policy and insurer will be entitled to

refund the premium after deducting the statutory charges.

The refusal by the insurer to renew insurance is a material fact.

When can the insurer held for breach of principle of utmost good faith

The insurer does not inform the proposer about the discounts in premium by use

of fire extinguishing systems

The proposer is advised not to clearly mention all the facts relevant to the

insurance

Premium is collected without allowing suitable rebates

False promises are made for bonuses in the future

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