Contract of Insurance is a Contract of Utmost Good Faith

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• Explanation "The insurance contract is a bona fide contract."

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An extremely honest contract is one of the important legal requirements for entering into an insurance contract .

In an insurance contract, two parties (the insurer and the policyholder) establish relationships of trust regulated by the provisions. According to the terms, both parties must conduct themselves in a spirit of mutual trust.

Trust behavior means trusting each other.

In particular, fiduciary behavior refers to the condition of accurately presenting all the information related to an insurance contract.

All required information provided by both parties in connection with the insurance contract is true and included in the contract to the best of our knowledge.

Thus, if one of the parties falsifies the insurance contract, the other party has the right to refuse to fulfill the contract.

Thus, the insured must demonstrate his insurable interest in the thing insured or in life.

The Oxford Business Dictionary mentions the following quote: “It is a fundamental principle of insurance practice that good faith is the principle that a person applying for insurance must provide the insurer with all information necessary for the correct calculation of the premium . Risk Related Nothing should be hidden from insurers, even if they don't really need the information on the claim form.

The policyholder must provide the insurer with all important information.

If the insured hides the details of the insurance contract, the insurer may terminate the contract and refuse to accept the risk, and therefore that party may ignore contact for compensation.

Both parties to an insurance contract must be careful when providing information. Otherwise, the contract may be terminated, and its object may be declared null and void.

Therefore, an insurance contract is called a "best intentions " contract.