The Promise

The insurer while making its promise refers to the proposal, various reports, allied papers (like answers to queries, reports of past illnesses and treatment, consent letters etc)    and declarations (like the declaration in the proposal etc), various details pertaining to the contract given in the schedule to the policy, conditions and privileges of the policy given therein. If, after submitting the proposal to the insurance company but before the insurer’s decision is communicated to the proposer, anything adverse takes place in the health or occupation of the proposed the same is to be communicated to the insurer. Insurer’s promise is based on the good faith that whatever is stated by the proposer is true to the best of his knowledge and belief and that nothing material is suppressed. Full disclosure of all material information is expected.

The declaration in the proposal authorizes employers and doctors to disclose to the insurer information pertaining to the proposer which are available with them, if sought by the insurer. It also accepts that if suppression of material information is proved the contract is liable to be repudiated. In short it fully binds the proposer (policyholder) legally.

Key words:

Schedule of policy
Good faith
Full disclosure
Declaration in proposal