Friday, October 24, 2014

What is Uberrimae Fidei (utmost good faith)?

Uberrimae fidei is a Latin phrase it denotes absolute or utmost good faith. The term is especially applicable to an insurance contract. Every contract of insurance is said to be a contract of uderrimae fidei. This is so termed because the insured in a contract of insurance must disclose all material facts to the insurers so that they can decide whether to accept or reject the offer for insurance. uderrimae fidei is a way by which insured will disclose all the relevant information to the insurers.