In a contract of insurance keeping silent as to material facts amounts to fraud ........

Indian Contract Act (ICA)1872 Valid and Void Contracts

In a contract of insurance, keeping silent as to material facts amounts to fraud.

True

Partly True

False

None of the above

- Option 1: True

- In insurance contracts, disclosing all material facts is crucial.

- Silence on important details can mislead insurers, which can be seen as fraud.

- Insurers rely on full disclosure, so withholding information is deceptive.

- Correct Answer: True

- Option 2: Partly True

- Silence could be partly fraudulent if not all material facts significantly impact the risk assessment.

- However, generally, it's considered fully fraudulent, not partly.

- Option 3: False

- This option would only be correct if silence did not influence the insurer's decision.

- Option 4: None of the Above

- This is incorrect, as 'True' adequately describes the legal expectation of disclosure.

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