Mataracy
VIP Contributor
DUTY OF DISCLOSURE
In all contracts of insurance , the proposer is duty bound not to conceal anything he knows to be a material fact. Anything contrary to this rule is fraud and cannot escape the consequences of failing to disclose such facts on the ground that he did not know them or he did not appreciate that they were material.
However, there are facts which need not be disclosed by a proposer.
(a) Facts known to the insurer or reasonably presumed to be known by the insurer.
(b) Facts for which insurers waive information.
(c) Facts with no bearing on the risk being undertaken.
(d) Facts which tend to lesson the risk.
(e) Facts which the insurers take it on themselves to know or which can be ascertained on enquiry.
(f) Facts of public notoriety.
(g) Facts which are unnecessary to disclose by reason of a policy condition.
(h) Facts which are spent.
FACTS THAT MUST BE DISCLOSES
The following facts must be disclosed by the proposer.
(1) Facts showing that the risk is greater than would be expected from one of its class.
(2) External factors which makes the risk abnormal
(3) Facts which will make the amount of loss greater than expected.
(4) Facts necessary to explain the exceptional nature of a risk proposed for insurance where, without them, the insurance would justifiably believe the risk to be normal.
(5) previous losses and claims under the policy.
(6) Existence of other policies.. Etv
In all contracts of insurance , the proposer is duty bound not to conceal anything he knows to be a material fact. Anything contrary to this rule is fraud and cannot escape the consequences of failing to disclose such facts on the ground that he did not know them or he did not appreciate that they were material.
However, there are facts which need not be disclosed by a proposer.
(a) Facts known to the insurer or reasonably presumed to be known by the insurer.
(b) Facts for which insurers waive information.
(c) Facts with no bearing on the risk being undertaken.
(d) Facts which tend to lesson the risk.
(e) Facts which the insurers take it on themselves to know or which can be ascertained on enquiry.
(f) Facts of public notoriety.
(g) Facts which are unnecessary to disclose by reason of a policy condition.
(h) Facts which are spent.
FACTS THAT MUST BE DISCLOSES
The following facts must be disclosed by the proposer.
(1) Facts showing that the risk is greater than would be expected from one of its class.
(2) External factors which makes the risk abnormal
(3) Facts which will make the amount of loss greater than expected.
(4) Facts necessary to explain the exceptional nature of a risk proposed for insurance where, without them, the insurance would justifiably believe the risk to be normal.
(5) previous losses and claims under the policy.
(6) Existence of other policies.. Etv
