Wednesday, 30 January 2013

Utmost good faith (Uberrimae Fidei)

Utmost good faith (Uberrimae Fidei)

In all legal contracts, it is essential that the parties to the contract exercise good faith. However, in insurance the emphasis is on utmost good faith which should be exercised by the insured. As the insured alone has complete information about the subject of insurance, he should reveal all the facts to the insurer. In case of breach of this condition the contract becomes void abinitio