utmost good faith(Uberrimae Fidei)

          The doctrine Uberrimae Fidei is originated from English law to the formation of insurance contract. Principle of Uberrimae fidei (a Latin phrase), or in simple English words, the Principle of Utmost Good Faith, is a very basic and first primary principle of insurance.

         Life insurance contract  is a contract of utmost good faith.Disclosing all material facts is very important principal applies to all forms of insurance. This means at the time of taking a policy, policyholder should ensure that all questions in the form are correctly answered. Any  non-disclosure or fraud, leading to the acceptance of the risk would render the insurance contract null and void.

1. The principle of utmost good faith, uberrimae fidei, states that the insurer and the insured must disclose all material facts before the policy inception.

2. Facts which may enhance the level of risk are called material facts.

3. The insurer or insurance company needs to declare all public disclosures and investment strategies while the insured needs to declare health condition, family medical history, lifestyle, food habits, smoking and alcohol history etc.

4. In case of non-disclosure or misrepresentation of material facts, the policy can be considered null and void.

5. This principle applies to both life insurance and general insurance policies.