THE DUTY TO NOTIFY THE INSURER OF CHANGE IN RISK AFTER THE CONCLUSION OF THE INSURANCE CONTRACT

Circumstances relevant to the assessment of risk may change after the conclusion of an insurance contract. Since the policyholder is the only party with full insight into all circumstances relevant to the risk assessment, he has a duty to notify the insurer of any such changes. This paper will examine the nature of the duty to notify the other contracting party as a manifestation of the principle of good faith. It will further defi ne the relevant risk, the aggravation or reduction of which constitutes the duty to notify, analyze the insurer’s rights upon being informed of a change in circumstances, and examine the legal consequences of breaching this duty by the policyholder. The duty to notify the insurer of an aggravation or reduction of risk is regulated by Articles 914–916 of the Serbian Law on Contracts and Torts. In addition to the analysis of Serbian law, the author will examine the relevant provisions of French and German law, as well as the Principles of European Insurance Contract Law (PEICL).

Keywords: insurance contract, risk, aggravation of risk, reduction of risk, duty to notify