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Report No. 21

Clause 14

General (Duty of assured).-This provides that a contract of marine insurance is one of utmost good faith. In fact, all insurance contracts are contracts of utmost good faith. Bad faith does not render the contract void, but only voidable. A person about to make out a policy must therefore

(i) make no active misrepresentation, and

(ii) disclose every material circumstance as defined in section 18(2) of the English Act.

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