Difference between Insurance Contract and Non-Insurance Contract ~ Asuransi Academy

Insurance contracts are different from non-insurance contracts. The following is the difference between a non-insurance contract and an insurance contract.

Non Insurance Contract
In a non-insurance contract, the doctrine that applies is CIVEAT EMPTOR, the content of which is “Let’s the buyer aware” which means the buyer must be careful before buying.

The seller is not obliged to provide an explanation of everything regarding his merchandise if not asked, unless there are regulations that require it. eg: Food and drug products.

Likewise, the seller has no right to ask anything about the buyer, except for the sale of certain goods, for example: prescription drugs.

Insurance Contract
In the insurance contract (Insurance Contract), the doctrine that applies is based on Utmost Good Faith, where the Insurer and the Insured have the right to know important facts (material facts) relating to the insurance coverage, and each is obliged to clearly and thoroughly notify the all important facts in connection with the closure.