Insurance Law- Principle of Non-Concealment

INTRODUCTION One of the fundamental features of an amends contract is that it is genius of Uberrimae Fidei, uttermost(prenominal) Good Faith. This is the basis of all indemnification transactions and this obligate of belief distinguishes it from other type of contract. This barter is of three change surface as held in Ado v. Nigerian General amends policy ltd. (1980): 1.To infract all secular Fact.2. not to misrepresent Material Fact. 3. Not to make dishonorable claims. The insured must whence declare oneself and disclose all natural facts relating to the subject publication of the insurance within his actual or presumed knowledge at the epoch of making the contract. This is known as the occupation of disclosure OR NON- CONCEALMENT. ORIGIN OF THE DUTY OF NON CONCEALMENT Under the world-wide law of contract, a contracting party is not induce to furnish learning which is not asked for, even when the information is material to the transaction. T he applicable motto is Caveat Emptor meaning allow the buyer take care. Thus the purchase of an condition or service has the duty of making all infallible 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 twisting for treatment of risk. This rule originated from the quaint English case of Carter v. Boehm, where ennoble 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 hindquarters 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 avert Though this locale classicus has stood the...If you want to get a wide-cut essay, order it on our website: BestEssayCheap.com

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