One of the fundamental features of an amends contract is that it is one of Uberrimae Fidei, uttermost(prenominal) Good Faith. This is the basis of all indemnification transactions and this article of belief distinguishes it from other type of contract.
This barter is of three fold as held in Ado v. Nigerian General Insurance ltd. (1980): 1.To infract all Material Fact.2. not to misrepresent Material Fact. 3. Not to make dishonorable claims.
The insured must therefore declare oneself and disclose all material facts relating to the subject matter of the insurance within his actual or presumed knowledge at the epoch of making the contract. This is known as the duty of DISCLOSURE OR NON- CONCEALMENT.
ORIGIN OF THE DUTY OF NON CONCEALMENT
Under the general law of contract, a contracting party is not obliged to furnish learning which is not asked for, even when the information is material to the transaction. The applicable motto is Caveat Emptor meaning let the buyer take care. Thus the purchase of an article or service has the duty of making all necessary 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 device for treatment of risk. This rule originated from the quaint English case of Carter v. Boehm, where Lord 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 more commonly in the knowledge of the insured only. The keeping back of such plenty is a fraud... Although the suppression should happen through mistake, without any fraudulent intention, yet still, the underwriter is deceived and the policy void
Though this locale classicus has stood the...If you want to get a full essay, order it on our website: Orderessay
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