Obligation of Good Faith in Insurance Contracts

Abstract

The principle of good faith is considered one of the fundamental principles upon which insurance contracts are based, due to the special nature of such contracts that rely heavily on mutual trust between the insurer and the insured. This principle requires both parties to disclose all substantial and essential information related to the insured risk honestly and accurately, in order to ensure the validity of the contract and maintain contractual balance between the parties. The importance of good faith in insurance contracts lies in its role in protecting the interests of the parties and reducing cases of fraud, misrepresentation, and concealment of facts that may affect the insurer’s acceptance of the contract or the determination of the insurance premium. This research addresses the concept of good faith in insurance contracts and the legal basis upon which it is founded. It also explains the forms of commitment to good faith before concluding the contract, during its execution, and upon the occurrence of the insured risk. Furthermore, the study highlights the obligations of the insured regarding the disclosure of substantial information unfair terms that may undermine contractual balance The research also discusses the legal consequences resulting from the breach of the principle of good faith, including the nullification or termination of the insurance contract and the loss of the insured’s right to compensation. In addition, it examines the position of comparative n granted to this .