Insurance Law- Principle of Non-Concealment

INTRODUCTION One of the fundamental features of an amends contract is that it is superstar of Uberrimae Fidei, uttermost(prenominal) Good Faith. This is the basis of all indemnification transactions and this condition of belief distinguishes it from other type of contract. This barter is of three close as held in Ado v. Nigerian General indemnity ltd. (1980): 1.To infract all worldly Fact.2. not to misrepresent Material Fact. 3. Not to make dishonorable claims. The insured must accordingly declare oneself and disclose all material facts relating to the subject military issue of the amends within his actual or presumed knowledge at the epoch of making the contract. This is known as the obligation of revelation OR NON- CONCEALMENT. ORIGIN OF THE DUTY OF NON CONCEALMENT Under the general law of contract, a contracting party is not compel to furnish learning which is not asked for, even when the information is material to the transaction. The appli cable motto is Caveat Emptor meaning allow the buyer take care. Thus the purchase of an condition or service has the duty of making all requisite enquiries from the seller. An exception to this rule applies in insurance transaction. A duty to disclose material facts relating to insurance transaction is imposed by law having regards to the nature of insurance as a artifice for treatment of risk. This rule originated from the quaint English case of Carter v. Boehm, where gentle Mansfield C.J succinctly stated the ratified position thus; insurance is a contract upon speculation.

The particular(a) facts on which ! the contingency is computed, lie to a greater extent commonly in the knowledge of the insured only. The keeping plump for of such plenty is a fraud... Although the suppression should happen with mistake, without any fraudulent intention, yet still, the underwriter is deceived and the policy nihility Though this locale classicus has stood the...If you want to get a intact essay, order it on our website: OrderCustomPaper.com

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