If utmost good faith is not observed by either party, the contract may be avoided by the other
Material facts - It has been defined as a fact that would affect the judgment of an insurance underwriter in deciding whether to accept the risk and if so, the rate of premium and the terms and conditions
Past history of illness,Existence of past policies taken from all insurers and their present status,All questions in the proposal form or application for insurance are considered to be material
Material information is that information which enables the insurers to decide: Whether they will accept the risk? If so, at what rate of premium and subject to what terms and conditions?
Facts such as Measures implemented to reduce the risk, Facts which the insured does not know or is unaware of, Matters of law etc need not be disclosed
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