Ripe for Reform

The current law imposes heavy duties on those applying for insurance. If the duty is not met, the consequence can be that all insurance cover is lost. Insurance contracts are based on the principle of uberrimae fides, giving rise to duties on both the insurer and insured to act with the utmost good faith. The most common manifestation of the duty is the obligation on the insured to give full disclosure of all material facts and by representing only the true facts to the insurer at the time the proposal for the insurance contract is made. Whether this obligation has been met is currently judged by reference to the viewpoint of underwriters.

If the policyholder fails in this duty, and the insurer can show that, if the true position had been known, it would not have agreed to the policy on the same terms (or at all),