Question

Mr. Paramjit hides some particular diseases of his from the Insurance co. while getting his life insurance done. Here, which Insurance principle is being ignored. Also, point out two social values that have been overlooked. ​

Answer 1

The principle of utmost good faith

Explanation:

The principle of utmost good faith, states that the insurer and the insured must disclose all material facts before the policy inception. In simple words, it means that there should be full transparency or full disclosure between the insurer and the insured.

The 2 social values which have been overlooked are-

1. Utmost good Faith

2. Full disclosure