Case Brief: Disclosure And The Materiality Test In Insurance Contracts

In a recent Judgement of the Supreme Court with No. 271/2016 the matters of disclosure and materiality were examined and some of the basic principles of Insurance Law were once again affirmed.

Facts

The appellant in this case contracted for a health insurance policy covering herself, her husband, and her daughter. She later filed a claim for her husband's hospitalization. The insurer discovered that the husband had pre-existing diabetes, which had not been disclosed during the application process. The insurer terminated coverage for the husband, claiming material non-disclosure. The appellant then filed an action, seeking to declare the termination unlawful. The insurer counterclaimed to have the contract declared void/voidable.