Economics · Insurance Law and Principles
Consider the following statements and select the correct option: Assertion (A): The Principle of Utmost Good Faith (Uberrima Fides) serves as a foundational legal prerequisite for the validity of any insurance contract within the Indian financial system. Reason (R): This principle legally mandates both the insurer and the insured to disclose all material facts related to the contract, as any concealment or misrepresentation of such facts renders the insurance policy voidable.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1(A) is false, but (R) is true.
- 2(A) is true, but (R) is false.
- 3Both (A) and (R) are true, and (R) is the correct explanation of (A).✓
- 4Both (A) and (R) are true, but (R) is NOT the correct explanation of (A).
Correct answer
Both (A) and (R) are true, and (R) is the correct explanation of (A).
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