M.Sc., B. Eng. (Mech) & Minor in Technopreneurship, National University of Singapore Quality Assurance San Diego United States
The principle of utmost good faith, uberrimae fidei, states that the insurer and the insured must disclose all material facts before the policy inception. The doctrine of utmost good faith is a principle used in insurance contracts, legally obliging all parties to act honestly and not mislead or withhold. 'Utmost good faith' is one of the first principles of an insurance contract. Utmost good faith is a common law principle (sometimes called Uberrimae Fidei). It is the fundamental principle of insurance law that utmost good faith must be observed by the contracting parties and good faith forbids either.