legal maxim

The Latin maxim of “Uberrima Fidesis” literally means most abundant faith. This maxim is used in Contracts regarding to insurances under Section 45 of the Insurance Act, 1938. This maxim requires that the parties of an insurance disclose all material facts in good faith before taking any insurance. Here the term “material” means any fact that any reasonable insurer would like to know while proving the party with an insurance. Since an insurance covers risks, it is important that all the relevant facts are stated as to the true knowledge of the parties. Any non-disclosure, whether or not with the intention of fraud will result in rendering the contract void. A deliberate attempt to hide material facts can also be taken as fraud, while an omission without any malicious intent gives the insurer two years of time from the issue of such insurance to render the contract void.

Mithoolal Nayak v. LIC

In this case, the appellant had hidden material facts from the insurance company while taking an insurance. The appellant had shown Mahajan Deolal, the person for whom the policy was purchased to have not visited the doctor in the last five years. This incident shows that there was an intention to hide the medical reports of Mahajan, thus the insurance was deemed void.