Category: The doctrine of utmost good faith and insurance contracts

The Assured’s Agent : Rights, Duites And Liabilities 1. Authority Of Insurance Agents Insurance agents are usually employed to effect an insurance and also to take an administrative role in the coverage of the policy taken to insure against perils of the sea. An agent may be granted actual authority which arises in consequence of...

Remedies 1. Avoidance i) Meaning Of Avoidance Avoidance is a remedy available to the innocent party. However, it is a remedy which does not apply automatically. The innocent party, commonly the insurer, has to elect to exercise the remedy and the election has to be communicated to the party in breach. If the insurer does...

The Insurer’s Duty 1. Introduction Section 17 MIA is quite clear in saying that the duty of good faith rests on both the assured and the insurer. The section further states that if there has been a breach of the duty by one party, the other party is entitled to avoid the insurance contract. As...

The Assured’s Post-Contractual Duty Of Good Faith 1. Introduction The Court of Appeal in The Mercandian Continent confirmed that the duty of good faith continues beyond the making of the insurance contract, in respect of claims and in respect of the performance of the contract generally. However, the duty is merely one not to be...

The Pre-Contractual Duty Of Utmost Good Faith 1. Introduction Section 17 MIA provides as follows:- A contract of marine insurance is a contract based upon the utmost good faith Section 17 together with sections 18 to 20 are applicable for insurance contracts entered into up until 12.8.2016. After this date the applicable sections are sections...