Marine, good faith, misrepresentation, non-disclosure marine insurance: disclosure, construction and brokers in hua tyan development ltd v zurich insurance co ltd  hkcu 1632 chung j considered a range of issues arising out of a marine policy placed through a broker acting under a binding authority. Briefly the misrepresentation or non-disclosure complained of must relate to a material fact which ought to have been disclosed accurately and which induced the insurer to enter into the contract of insurance on the terms agreed section 3 of the act seeks to clarify the current law and modify the duty of utmost good faith that underlies. Faith and the assured’s duty of disclosure and non-misrepresentation is to aid the underwriter in making an informed decision as to whether he wants to enter into the contract and at what premium. 1 the doctrine of uberrimae fidei whereas under the general law of contract there is no positive duty of disclosure, contracts of insurance are a species of contracts uberrimae fidei (of utmost good faith) 9 consequently, both parties, ie the proposer and the insurers, are bound to disclose every material fact affecting the risk to the other before the contract is concluded 10 the duty of. Basis of non-disclosure by the insured would most likely be settled by an insurer in australia the duty of utmost good faith and disclosure in the insurance contracts amendment bill 2010 (cth) and the revised 2009 chinese insurance laws.
According to the marine insurance act of 1906 we can see that how a contract of marine insurance should take place with the principles of utmost good faith, duty of disclosure by assured and the agent and many other principles. Ordinarily, therefore, it appears, under-insurance, so far from being regarded as material non-disclosure justifying the avoidance of the policy, results instead in averaging, or indeed in full. A breach of utmost good faith can be in the form of either a misrepresentation (ie the giving of false information) or a non-disclosure (ie failure to give material information)alternatively, it can be classified into a fraudulent breach and a non-fraudulent breach (ie a breach committed either innocently or negligently, rather than fraudulently.
Take note that the insurance company has the right to dispute the validity of a claim on the grounds of non-disclosure of material facts if the claim was made during the contestable period, which is usually two years after the policy is issued. The primary reason for dishonor of insurance claim is non-disclosure or misstatements of material facts at the time of the contract itself insurance: a form of contract the additional conditions include the presence of an insurable interest and the duty of utmost good faith the supreme court in life insurance corporation of india & ors. Clash of culture: good faith versus fair dealing but the duty to disclose material facts remains firmly with the customer and the remedies for non-disclosure favour the insurer in the united kingdom (uk), the consumer insurance (disclosure and representations) act 2012 abolished the duty of disclosure for consumers and modified the.
Duty of disclosure the principle of the duty to disclose is closely related to the common law principle of utmost good faith and the requirement on the insured to always be honest and accurate in the information he or she gives to the insurance company. Under s 28 of the insurance contracts act 1984 (cth), if non- disclosure was fraudulent the insurance company can cancel the policy and refund the premium this is the case even if two people applied for joint insurance, and one of them lied on the application without the other realising it. Misrepresentation and non disclosure on applications for insurance table of contents 1 introduction 1 2 concerns of insurers and insureds at the application stage 3 21 what is the insurer's concern at the time of the application 3. Insurance duty of the utmost good faith revision the following is a plain text extract of the pdf sample above, taken from our insurance law notes this text version has had its formatting removed so pay attention to its contents alone rather than its presentation. This means that the insurer is unlikely to bring an action for the breach of good faith - rather, the insurer will merely cancel the contract for non-disclosure or deny a fraudulent claim nevertheless, the result for the broker is still the same - whatever losses the insured suffers as a result of the broker's actions will result in the.
‘utmost good faith’ and ‘disclosure’ obligations in english law insurance contracts in recent years the obligations upon an insured to provide relevant information to an insurer when applying for, or renewing an insurance policy, and the entitlement of an insurer to avoid cover and claims as a result of ‘non-disclosure’, have been reviewed by the law commission and amended by. Under section 45 of insurance act 1938 states that if within 2 years of commencement or revival of the insurance policy, the insurer get to know that there has been a non-disclosure or misrepresentation of material facts, then the insurer can call the policy null and void. 3 the disclosure rule has its origin in the reciprocal duty of utmost good faith (uberrimae fidei) owed by and to each party to a contract of insurance the business of an insurance underwriter is the assessment of risk.
Consequences of non-disclosure in the contract of insurance ms nargis yeasmeen (llb, llm- west bengal national university of juridical sciences, kolkata) abstract: all contracts of insurance are contracts of utmost good faith, so both the insurer and insured are. Fundamental changes to insurance contract law: the insurance act 2015 breach of the duty of good faithany law permitting an insurer to avoid a policy on the basis that the duty of utmost good faith had not been observed has been abolished (ie the insured knew the non-disclosure was a breach). Not all instances of non-disclosure or misrepresentation breach the duty of ‘utmost good faith’ we have identified four types of non-disclosure (deliberate, reckless, innocent, and inadvertent) to help us decide whether, with regard to all the available evidence, the customer acted in breach. Typically, non-disclosure arises in life and critical illness insurance as well as motor and household, but also arises in travel, private medical and even pet insurance commercial insurance products also give rise to complaints about non-disclosure.