The principle of Utmost Good Faith is also known as Uberrimae Fides. It means that both the insurance policyholder and the insurer need to disclose all material and relevant information to each other before commencement of the contract.
Under Section 45 of Insurance Act 1938 states that if within 2 years of commencement or revival of the insurance policy, the insurer get to know that there has been a non-disclosure or misrepresentation of material facts, then the insurer can call the policy null and void.
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