Objectives: This study aims to analyze the interpretation of insurance contracts, taking into account their unique nature and the essential principles that govern them, particularly the principle of good faith and the contra proferentem rule. The increasing popularity of insurance as a financial safeguard against risks and unpredictable dangers underscores the significance of this analysis.
Methods: The research employs a descriptive-analytical method, utilizing library-based resources to explore the unique features of insurance contracts and the principles that inform their interpretation. This approach allows for a comprehensive understanding of the complexities involved in interpreting these contracts.
Findings: Insurance contracts differ fundamentally from other agreements due to their non-negotiable, adhesive nature, which can create inequality between parties. Since these contracts often contain ambiguous clauses, the application of the contra proferentem rule becomes essential in ensuring justice. This rule dictates that any clause deemed ambiguous should be interpreted against the interests of the drafting party, which typically supports the weaker party, namely the insured. Recognizing that many insurance contracts are adhesion contracts highlights the necessity for a specific set of rules governing their interpretation, aimed at addressing the vulnerabilities that arise from their inherent characteristics.
Conclusion: The distinctive features of insurance contracts necessitate a focused approach to their interpretation. By applying the contra proferentem rule, fairness is promoted, and the reliability of these contracts is enhanced, ultimately encouraging more individuals to engage in insurance agreements. This research highlights the importance of understanding these principles to foster a more equitable insurance landscape.