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The principles of insurance can be summarized as a contract of Utmost good faith technically known as uberrima fides. The doctrine of disclosing all material facts is embodied in this impoortant principle which applies to all forms of insurance.The proposer, who is one of the parties to the contract, is presumed to have means of knowledge which are not accessible to the insurer, which is the other party to the contract. Therefore, the proposer is bound to tell the insurer everything affecting the judgement of the insurer, no matter howsoever unimportant it may seem to ohim. In all the contracts of insurance the proposer is bound to make full disclosure of all material facts and not merely those which he thinks material. The principles of insurance stand following objects of assurance :-
1) Family Protection
2) Provision for old age, or
3) In exceptional cases, the object of insurance may be :a) to serve as security to educational funds in respect of laons advanced for educational purposes, or
b) to provide donation to charitable institutions like hospitals and schools.
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