Quote Originally Posted by msgforsunil View Post
a. Agreed, curious to know, if declaration now would increase my premium amount?
They (insurer) may increase the premium, depending upon there underwriting practice.
b. Would there be any problem in settlement(if case, if it happens), if one doesn't declare other insurance?
The basic principle says that declare all material facts even it decreases risks. So I would suggest please inform your insurer. What happen, I cannot predict. Companies run on rules.
Utmost Good Faith - One of the basic and primary principles of insurance is Utmost Good Faith. It states that insurance contract must be made in absolute good faith on the part of both the parties. The insured must give to the insurer complete, true and correct information about the subject matter of the insurance. Material fact should not be hidden on any ground. This principle is applicable to all types of insurance contracts. Insurance is for protection and not for profit and hence, correct information must be given to the insurance company.