8.01 Even though a circumstance may be material and its concealment may induce the insurer to enter into a contract of insurance, there are occasions where the assured will not be held responsible for the lack of disclosure. These occasions or exceptions are largely encapsulated by section 18(3) of the Marine Insurance Act 1906 (in respect of contracts concluded before 12 August 2016), which may be taken to represent the common law applicable to both marine and non-marine insurance contracts, and by section 3(5) of the Insurance Act 2015 (in respect of contracts concluded on or after 12 August 2016). The exceptions exist because the non-disclosure of material facts in such cases is not seen as detracting from the purpose of the duty of disclosure,1 namely to redress the imbalance of knowledge available to the assured and the insurer when they are negotiating terms, which imbalance itself might increase the risk of financial loss to the insurer.