The Assured, s Duty to Pre-contractual Disclosure in Iranian and British Law

Objrctive: The main purpose of the research is to examine the assured, s commitment to disclose information, its basis and scope in the pre-contractual stage in the two legal systems of Iran and the United Kingdom.

The method used in the research is a descriptive and analytical method that has been done in the context of a comparative study between Iranian law and British law, especially the new British Insurance Law adopted in 2015.

As a general rule, the negotiating parties have no obligation to disclose information to each other. The main rationale and logic behind contractual relations is this matter that each party must protect its own interests merely. In other words, self-interesting is the governing principle in contractual relations and duty to disclose information as a commitment at the pre-contract stage has not been identified yet. However, the insurance contract is the most important exceptions to this general rule. In this contract, as a contract based on utmost good faith, mutual obligations have been recognized to the parties, especially the insured. One of the main pre-contractual obligations of the insured is the obligation to provide related information. Not only the insured must refuse to make a false statement and misrepresentation, but also it is obliged to provide the insurer with essential information so that he or she can make an informed decision to accept the principle of risk and determine its conditions. Although there is no difference of opinion in the insurerd's obligation to disclose information at the pre-contractual stage, there are differences in practice, especially in Iranian law, regarding the scope of this obligation, its basis and effects, which has reduced the benefits of disclosure. Therefore, it is suggested that the legislator explicitly establish a rule regarding the basis and scope of the insurerd's pre-contractual obligation to disclosure.      

In short, it can be said accurate pre-contractual information can help the insurer to predict the insurance risks and to determine the appropriate insurance premium. However, this obligation is not unconditional and it is subject to restrictions such as waiver, lack of awareness, etc. In terms of legal sanctions, breach of this obligation can also lead to cancellation, termination and civil liability litigation.