Business Insurance What are the Duties of an Insurer?

[Mataracy]

Before I proceed, I will like to defined the meaning of Insurer .
An insurer can be described as a person that has the legal capacity to enter into a contract of insurance provided he has the requisite insurable interest.
Therefore there are some long time decree that I remember for example that also say something about like; insurance Decree No. 21 of 1988, Decree No. 80 of 1991 and the insurance Act 2093 sought to protect the interest of the insured in relation to utmost good faith and material facts by stipulating ad follows:
(1) An insurer will not unreasonably reject a claim non-disclosure of a material fact may constitute ground for rejection but not where the matter was outside the knowledge of the proposer.
(2) Proposal forms should draw attention to the consequences of failure to disclose all material facts, and warn that if the proposer is in any doubt about whether a fact is material he should disclose it. Matters that are material yo the assurer must be subjected yo clear questions in the proposal form
(3) Insurers will continue to develop cleared and more explicit proposal forms and policy documents whilst bearing in mind the legal natural of insurance contracts.
(4) Payment of claims will be made without avoidable delay once the insured event had been proved and the liability has been accepted by the insurers.

 

[Mika]

Every country has its own insurance act and I do not know when the insurance act was first time introduced in my home country. Some of the basic principles of insurance are followed in all countries but there are specific clauses in every country. The terms and conditions for a policy also depends on the insurance company

 

[Nite]

The duty of an insurance company is to do fair dealings with their clients when handling any transaction, which means they must always act in their client's best interest. They are obliged to faithfully investigate and honor valid insurance claims. All the insurance agreements by an insurance company must be done in good faith.

 

[Wisdom01]

An insurer must also follow the rules and guidelines made by the insurance company when it comes to risk coverage and so many other factors , and also the insurer must not involve in any illegal activities or try to trick the insurance company , once get caught he will face the judgement attached

 

[Chibson]

Of course insurer have roles and responsibilities to play in any insurance policy or process. It is very important for an insurer to always pay premiums as at when due so that his contract with the insurance company will not be terminated. It is also very important to be honest as possible as an insurer.