M/S. Solidix India vs New India Assurance Co. Ltd. on 7 January, 2020
10. The Hon'ble NCDRC in the matter of Rahul Furniture House versus New India Assurance Co. Ltd. as reported in II [2016] CPJ 589 (NC) has observed that non-furnishing of requisite documents is a ground to take a view against the insured. It is a fundamental principle of insurance law that utmost good faith must be observed by the contracting parties. Good faith forbids either party from concealing (non-disclosure) what he privately knows, to draw the other into a bargain, from his ignorance of that fact and his believing the contrary. Just as the insured has a duty to disclose," similarly, it is the duty of the insurer and their agents to disclose all material facts within their knowledge since obligation of good faith applies to them equally with the assured. The duty of good faith is of continuing nature. After the completion of the contract, no material alteration can be made in its terms except by mutual consent.