Two fundamental principles of insurance law
When it comes to insurance, even those who are naturally inclined to tell porkies are forced to tell the truth.
The first principle of insurance law is uberrimae fidei, which is interpreted to mean “the utmost good faith”. Essentially this means that both parties to an insurance contract must be upfront and completely truthful in their dealings with each other. The failure by either side to be truthful means that the insurance policy can be refused. If the insurer was not completely truthful about the contents of the policy on sale, for example, the insured will be entitled to a refund of premiums paid and perhaps damages; whereas if the insured is not completely truthful, the insurer can repudiate the policy and refuse to pay out compensation for the damage or loss to the thing that has been insured.
Unlike other…
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