Duty to Provide Information in Insurance Contracts in the Pre-Contractual Period

Abstract

The obligation to provide information in insurance contracts in the pre-contractual period is one of the fundamental factors to form an insurance contract. Before participating in insurance contract, the insurers mainly rely on the information provided by the prospective policyholder, to assess risks on the information provided, then decide whether or not to engage in an insurance contract. Concurrently, the responsibility to provide information on the pre-contractual period is not only set for the prospective policyholders, but also for the insurers in explaining the terms and the standard clauses of the insurance contract. In the article, the author analyzes the asymmetric information in insurance business and its interaction with the goodfaith principle, and presents the drawbacks of the current legal framework relating to duty to provide information in the insurance disputes in Vietnam.