Disturbing lack of faith

The centuries old principle of uberrima fides, or acting in good faith, has disappeared in non-business insurance, and the industry only has itself to blame, writes Tony Cornell

The doctrine of uberrima fides has applied to insurance contracts since Carter v Boehm in 1766 – nearly 250 years – and was codified into statute in The Marine Insurance Act 1906. The principle was that the insured must disclose all material facts to insurers. If they failed to disclose something, then the contract could be cancelled and any claim declined.

It placed insurance in a privileged position as opposed to other commercial contracts where the doctrine was caveat emptor – let the buyer