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Business Services
Question
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 A person suffering from cancer did not disclose this fact while taking a LIC policy. Name the principle he/she violated and explain it in 50 words?  

Answer

Principle of utmost good faith is violated Insurance is a contract of utmost good faith. It means that both the persons entering into contract should be absolutely honest to each other.

Good Faith : A contract of insurance is a contract of uberrimae fidei, i.e., requiring good faith between the parties. The insured must not conceal anything which is material to the subject matter of insurance.

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