The duty of utmost good faith and the duty of disclosure apply to:

Utmost good faith applies to:

Why is it important for an insurer to know the cause of a loss?

False or grossly exaggerated claims are not viewed as fraud by the insurance industry.

In recovery action, where one party seeks to recover damages from another party in a court of law, any attempt to hide important information from the court by any party may well result in that party losing all or substantial credibility with the court.

The more supporting documentation an Insured can provide, the faster a claim will be processed.

In the case of Australia, these old rules or principles on which insurance is based have been retained, albeit slightly modified, by the introduction of the:

Most general insurance policies do not stipulate that it is necessary for the Insured to disclose the nature and extent of a third party's interest at the time of notification of the claim.

In cases of fraud, the insurer may acquire the right to avoid the contract of insurance.

If the Insured’s non-disclosure or misrepresentation was innocent, then the insurer has to: