ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Material facts are important information that one must not miss to reveal to the insurer as it can influence the insurance company’s decision of whether or not to issue the policy. These facts affect the judgement of a prudent insurance underwriter.

Detailed explanation-2: -important information that may affect a decision in a court of law: Material facts are those that are relevant to the court’s decision.

Detailed explanation-3: -A material fact is anything that may influence the judgement of a prudent insurance underwriter in deciding whether to accept a risk and if so at what premium and terms. Using the insurance principle of ‘utmost good faith’ you should disclose all the material facts about your risk which you know or should know.

Detailed explanation-4: -An important fact about you or your circumstances that would influence an insurer’s decision on whether to issue a policy and on what terms. Non-disclosure or misrepresentation of such facts can result in your policy being cancelled or your claim being declined.