06/12/2021
Do you Trust your Insurance Company?
A trust is the most important element of any Investment.
So the question is "Do you really trust the Insurance company where your hard earned money is invested?"
We should look at the basis of the trust between you and the Insurance company where your money is invested.
The insurance contract is also governed by the provisions of the Indian Contract Act 1872. However some principles are specifically applied to the insurance contract only.
The most important principle applied to the insurance contract is the "Utmost Good Faith"
It says, everything that is material or relevant to the contract has to be DISCLOSED by both the parties entering the contract.
So, a person proposing the contract has to disclose facts relating to his health, diseases, family history etc.
And the Insurance company must declare all the terms regarding the contract in the Policy document.
So each and every aspect of the Insurance contract is written there in your policy document or policy bond.
We must have a good interpretation and understanding of the policy document so as to be fully aware of the factors affecting the insurance contract and ultimately our investment!
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