Claim from Insurance Contract by Bad Faith

Abstract

Insurance Contract is based upon Utmost Good Faith and the duty of good faith, Contract of Insurance has a specific manner different from general contract that arise when offer and acceptance is met. But Insurance Contract is a contract of transferring risk from the insured to the insurer. The Principle of Utmost Good Faith on the part of the insured should not expire when the contract has been made. The reasons for the requiring good faith continue to exist not only the inception of risk, but in the steps taken to carry out the contract. Utmost Good Faith is contained in the condition of a policy and in law stipulated such as Thai Civil and Commercial Code Section 879 that the insurer is not liable if the loss or the event specified in the contract is caused by the bad faith of the insured or the beneficiary. In the past or nowadays Bad Faith in insurance contract is the burden of proof of the insurer to prove that insured or beneficiary makes a fraudulent claim, thus the insurer will be entitled to refuse to pay indemnity to the insured or the beneficiary