doctrine of uberrima fidei - Indian Laws - General

Doctrine of uberrima fidei The fundamental principle is that insurance is governed by the doctrine of uberrima fidei. This postulates that there must be complete good faith on the part of the insured. This principle has been formulated in MacGillivray on Insurance Law ( Twelfth Edition, Sweet and Maxwell (2012 )) succinctly, thus: [Subject to certain qualifications considered below], the assured must disclose to the insurer all facts material to an insurer s appraisal of the risk which are known or deemed to be known by the assured but neither known or deemed to be known by the insurer. Breach of this duty by the assured entitles the insurer to avoid the contract of insurance so long as he can show that the non-disclosure induced the making of the contract on the relevant terms The relationship between an insurer and the insured is recognized as one where mutual obligations of trust and good faith are paramount. [RELIANCE LIFE INSURANCE CO LTD ANR VERSUS REKHABEN NARESHBHAI RATHOD- 2019 (4) TMI 1454 - SUPREME COURT]