Multiple choice

Sanju took a medical insurance from Deadly Diseases Insurance & Claim Corporation of Asia (DDICCA) through one of its agent, Manju. Sanju signed whatever documents were placed before her by Manju in good faith. The documents contained the fact that Sanju was healthy, fit and fine whereas she was actually suffering from chronic asthma and acute allergy. Sanju did not take care to suggest the changes in the documents and the policy was issued based on the above submissions.

  1. Sanju is well protected because she relied on Manju in all good faith.

  2. Sanju is well protected because Manju never specifically asked here about the above issues and so she remained silent.

  3. Sanju has a duty to speak and disclose the above issues.

  4. Sanju has no duty to speak and disclose the above issues. It is the duty of DDICCA and its representatives to ask whatever is required.
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In insurance contracts, the principle of uberrimae fidei (utmost good faith) requires the proposer to disclose all material facts voluntarily, regardless of what the agent asks. Relying on the agent, remaining silent, or expecting the insurer to ask everything are not valid defenses. Sanju had a legal duty to disclose her asthma and allergy. Option C correctly states this duty to disclose. Options A and B incorrectly suggest reliance or silence protect her, D wrongly shifts the burden entirely to the insurer.

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