(Uberrima fides – utmost good faith)
It is a long established practice of the powers-that-be, to translate simple principles into dead languages in order to make it hard for the average person to understand. This practice has been employed by lawyers throughout the ages to prevent us from penetrating the shadowy secrets of contract doctrine, which has led to the creation of a legal system so convoluted that it would be near impossible to unravel and identify each individual precedent it now contains. The concept of “uberrima fides”, however, can still be explained (to some extent).
The doctrine of uberrima fides translates as a requirement to exercise the “utmost good faith” when dealing with matters of insurance. The rule essentially requires us to disclose all “material facts” when applying for or renewing insurance. It has been criticized frequently, owing to the difficulty that arises from expecting the lay community to know what constitutes a “material fact” and enforcing insurance refusals when they don’t. Obviously you shouldn’t have to be a barrister to be sure you have adequate insurance, and you shouldn’t have to higher one in order to make a claim.
Failed to give full disclosure?
If you have been refused home insurance because you failed to tell your insurer something that was relevant to your application, you may already know how unfair uberrima fides can be. There is some cause to believe that the intention of the original doctrine has been misapplied through an incorrect reading of legal precedent set in 1766.
Disclosure is mandatory
Though this interpretation has been used countless times to establish that it is the insured party’s responsibility to disclose material facts, the fact that the case ultimately found in favour of the insured (and not the insurer) seems to have been overlooked completely. Sadly, even though there might be a case for a review of the applied doctrine, it currently stands and must be adhered to. If you have been refused home insurance, you must disclose this as a material fact when applying for new insurance.
