Page 79 - Ebook health insurance IC27

Sashi Publications

When can nondisclosure be alleged
 Fact must be known to proposer
 Fact must not have been known to insurer
 Fact is made known to the insurer, may have affected the decision of the insurer to

grant cover
 The fact must have been deliberately held back by the insured in order to get better

terms in the insurance contract

When are the principles of Utmost Good Faith not violated?
In case of
 Facts relating to law
 Facts relating to general knowledge

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 in floating

health insurance policy
 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 no claim bonuses in the future

Insurable Interest
 All risks are not insurable
 Speculative risks are not insurable. Only pure risks are insurable.
 Speculative contracts are wagering contracts and are considered to be illegal
 Subject matter of a valid contract needs to be legal

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