Question

Which Principle of Insurance emphasizes that insurance contracts are based on trust and honesty between the insurer and the insured?

पर्याय

• Principle of Subrogation

• Principle of Contribution

• Principle of Utmost Good Faith

• Principle of Causa Proxima

Answer 1

Principle of Utmost Good Faith

Explanation:

Insurance contracts require full, honest disclosure and mutual trust because both the insurer and the insured must reveal material facts. Breach of this duty can render the contract voidable, preventing fraud and protecting both parties.