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Meaning of expression "material" - Indian Laws - GeneralExtract Meaning of expression material in the context of an insurance policy can be defined as any contingency or event that may have an impact upon the risk appetite or willingness of the insurer to provide insurance cover. In MacGillivray on Insurance Law ( Twelfth Edition, Sweet and Maxwell (2012). See Pg. 493 for cases relied upon. )18 it is observed thus: The opinion of the particular assured as to the materiality of a fact will not as a rule be considered, because it follows from the accepted test of materiality that the question is whether a prudent insurer would have considered that any particular circumstance was a material fact and not whether the assured believed it so ... Materiality from the insured s perspective is a relevant factor in determining whether the insurance company should be able to cancel the policy arising out of the fault of the insured. Whether a question concealed is or is it not material is a question of fact. As this Court held in Satwant Kaur- 2009 (7) TMI 1375 - SUPREME COURT : Any fact which goes to the root of the contract of insurance and has a bearing on the risk involved would be material . Materiality of a fact also depends on the surrounding circumstances and the nature of information sought by the insurer. It covers a failure to disclose vital information which the insurer requires in order to determine firstly, whether or not to assume the risk of insurance, and secondly, if it does accept the risk, upon what terms it should do so. ......... Modern Insulators Ltd v Oriental Insurance Co Ltd.- 2000 (2) TMI 857 - SUPREME COURT . Adverting to the expression material fact this Court explained it as: 22. any fact which would influence the judgment of a prudent insurer in fixing the premium or determining whether he would like to accept the risk. Any fact which goes to the root of the contract of insurance and has a bearing on the risk involved would be material . [RELIANCE LIFE INSURANCE CO LTD ANR VERSUS REKHABEN NARESHBHAI RATHOD- 2019 (4) TMI 1454 - SUPREME COURT]
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