Repudiation Of Insurance Contracts

The duty of someone completing a proposal form for insurance is to volunteer information to an insurance company where the information would appear to a prudent insurer to be material to a decision whether to accept a risk, and on what terms. It is rooted in the "special knowledge" of a risk as being likely to be solely in the possession of the proposer.

In the Irish case of Manor Park Homes Builders Limited v AIG Europe (Ireland) Limited; the Court stated that there is a heavy onus of disclosure on the insured, otherwise the insurer would have great difficulty in assessing the risk or calculating the premium, but this "does not ... mean that the insurer can cover its eyes or abstain from making normal enquiries or investigations".