Principle of Utmost Good Faith & Disclosure Clause in Insurance Sector: Perspectives from Dasbodh [Manache Sholk no.19]

Indian Marine Insurance Act, 1963 is almost based upon the English Counter part but still the significance of insurance law in Indian legal studies has not yet been realized. This is due to the rules of law prior to the Act, 1963 have been saved by the section 91 of the Marine Insurance Act, 1963. Now UK has amended the provisions in the Insurance through Acts, 2012 and 2015. In such circumstances, comparative study is carried out to find out, changes in the contents for good faith in the Marine Insurance Act, 1963.

It is studied, due to the continuous reforms in the insurance sector, there is no need to make changes in the contents of good faith in the Marine Insurance Act, 1963.

Under the common law principles for insurance, the good faith and duties of disclosure are closely connected with each other. During this study, a Shlok No.19 [Manache Shlok] from Dasbodh was studied.

It is studied, there is a need to balance the mutual duty for disclosure and non-disclosure of the growth in the insurance sector. Hence, it is suggested that, in India, greater regulation and regulatory reforms are expected from IRDA to strike a fairer balance between insurers and consumers/insured for this purpose more research study is necessary. This is a preliminary study and did not cover entire aspects for the above subject.