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Question 12 of 17

Q.The basic principle of Insurance is ________.

(a) Subrogation
(b) Utmost good faith
(c) Proximate Causa
(d) Co-operation
Puducherry TnboardTamil Nadu HSC First Year (DGE) Commerce Board 2022MCQ· 1mImportance★★★★★
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The answer is option (b) Utmost good faith.

A contract of insurance is a contract uberrimae fidei, that is, a contract of utmost good faith. This basic principle requires both parties — the insured and the insurer — to disclose fully and truthfully all material facts relating to the subject matter of insurance. If a material fact is concealed or misrepresented, the contract can be avoided. The other options — subrogation, proxi …

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