This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.
7.1 Existence and nature of the duty
Underlying all stages of the relationship between insured and insurer is an important substratum of obligation, the reciprocal duty of (utmost) good faith. Mainly decided cases focus on the duty of the insured, it being “an essential condition of the policy of insurance that the underwriters shall be treated with good faith, not merely in reference to the inception of the risk, but in the steps taken to carry out the contract”. 1 This was said in 1904 but nearly a century later, in The Star Sea , 2 Lord Hobhouse confirmed that “utmost good faith is a principle of fair dealing which does not come to an end when the contract has been made”, and quoted a distinguished judge of an earlier generation as saying that the obligation of good faith rests on the insured “throughout the currency of the policy”. 3
The rest of this document is only available to i-law.com online
If you are already a subscriber, please enter your details below to log in.