What does the Doctrine of Estoppel establish?

The Doctrine of Estoppel is a legal principle that prevents a party from asserting a claim or right that contradicts what they previously established as true or implied through their actions or statements. When a party waives a right or allows another party to rely on their actions or inactions, they cannot later assert that right against that party.

In the context of insurance, if an insurer, for example, leads a policyholder to believe that a certain right or benefit is available and the policyholder relies on that information, the insurer is then estopped from later denying that right. This principle is crucial in ensuring fairness and accountability in contractual dealings, as it protects parties from the surprise of unexpected assertions after they have acted based on previous understandings.

Understanding this principle helps clarify that once a right has been waived, the party giving up that right cannot go back to assert it later, which aligns with the concept of promoting consistent behavior and reliance on established facts or precedents.