Short notes on Waiver and Estoppels
Waiver :
Waiver is defined as the voluntary relinquishment of a known right. The waiver may be (i) expressed or (ii) implied. An insurer is informed that a policy under which claim is made is void because the person insured had no insurance interest in the property; but still, the insurer is going to pay it as a waiver.
The example of implied or waiver by conduct is where after having learned of a misstatement on a proposal nevertheless, in full knowledge accepts the insurer.
ADVERTISEMENTS:
Estoppels:
Estoppels is the legal bar raised by a person’s own action against asserting a right that he once possessed or making a choice that once was open to him.
An insurer may be stopped from exercising its option to take all or any part of the property at the agreed or appraised value if it delays its notice to the insured that it intends to do so.
When the insurer has sought to fix the amount of loss through arbitration, it is estoppels from exercising its option to reinstate or replace.