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Insurance contracts are founded upon the doctrine of utmost good faith which, inter alia, requires the prospective insured to disclose material circumstances within its knowledge. This article examines the extent to which rumours in relation to, and false allegations of, dishonesty, criminality or misconduct by a business insured fall within the scope of its pre-contractual disclosure duties. If every false allegation must be disclosed, the insured may be placed in a situation where he must pay a higher premium or where he is refused insurance. Non-disclosure may entitle the insurer to avoid the contract. This article considers the current law and reform proposals in this area and argues that fairer outcomes in unfounded allegation scenarios could be achieved by adopting a proportional approach to materiality and by introducing a more flexible remedies regime. Read more

THE DISCLOSURE OF UNFOUNDED ALLEGATIONS IN BUSINESS INSURANCE’ MRINAL VIJAY, ‘COMMERCIAL SURROGACY ARRANGEMENTS: THE UNRESOLVED DILEMMAS