The Legal Obligation of Transparency and Disclosure in Electronic Insurance Contracts - A Comparative Analytical Study between Saudi and the Egyptian Legal Systems

Abstract

Insurance contracts are essential legal and economic instruments that help manage risks and protect individuals and institutions from financial losses resulting from unforeseen events. By distributing liability across parties, these contracts contribute to economic stability and enhance trust in commercial relationships. The rapid growth of electronic insurance has heightened the importance of transparency and disclosure, which are critical for ensuring informed consent and safeguarding the insured from misleading or incomplete information.

In the context of electronic insurance, transparency and disclosure embody the principle of good faith, which governs contractual relations in general and insurance contracts in particular. Given the technical and complex nature of insurance agreements, the insured often faces an informational disadvantage relative to the insurer. Without clear and comprehensive disclosure, the insured may be unable to understand the scope of coverage, applicable exclusions, or potential risks, undermining the fairness of the contractual relationship.

Despite the existence of regulatory frameworks in Saudi and Egyptian law aimed at protecting the insured, practical implementation reveals persistent challenges. These include the use of technical or ambiguous language, reliance on formalistic disclosure practices, and limited awareness of contractual rights. Such deficiencies may disrupt contractual balance and lead to serious legal consequences, including potential invalidity of the contract or liability on the part of the insurer.

This study provides a comparative legal analysis of transparency and disclosure obligations in electronic insurance contracts under Saudi and Egyptian law. It identifies gaps in both legislation and practice and proposes legal solutions to strengthen the protection of the insured, promote fairness, and ensure confidence in digital insurance transactions.