Legal rationale of forming the duty to provide information in the pre-contractual insurance contract

Abstract

The duty to provide information in the pre-contractual period is one of the fundamental factors to form an insurance contract. In terms of the insurers, they are basically in the reliance of the information provided by the prospective insureds to assess the frequency and level of risks to decide to engage in the insurance contract or not. Meanwhile, the insureds need to be provided the insurance policy and know all the substantial articles of the insurance policy drafted by the insurers to decide the acceptance of the adhesion contract. In the article, the author analyzes the rationale of forming the duties to provide information by the both parties at the pre-contractual period based on the good faith principle of the contract parties, the asymmetric information, and the nature of assessing the risks in the insurance business. Meanwhile, the article also presents the evolution of the duty to provide information in the pre-contractual period in the insurance contract in Vietnam.