Representations by Insured and their impact :
Section 22 of the Act lists down the representations by insured before the policy issued by the insurer and the impact thereof as follows:
(a) All material representations made by the assured or his agent to the insurer during the negotiations for the contract, and before the contract is concluded, must be true. If it is established that any of the representations is untrue, the insurer may avoid the contract.
(b) A representation is considered “material” if it influences the judgment of a prudent insurer in fixing the premium, or determining whether he will take the risk.
(c) A representation may be either as to a matter of fact, or as to a matter of expectation or belief.
(d) A representation as to a matter of fact is true, if it be substantially correct, that is to say, if the difference between what is represented and what is actually correct would not be considered material by a prudent insurer.
(e) A representation as to a matter of expectation or belief is true if it be made in good faith.
(f) A representation may be withdrawn or corrected before the contract is concluded.
(g) Whether a particular representation be material or not, is, in each case, a question of fact.
Requirements as to Marine Insurance Policy issued by the insurer
The following are the requirements as to the Marine Insurance Policy contract issued by the Insurance Company:
(a) All marine Insurance Policy contract must be signed by and on behalf of the insurer.
(b) The marine insurance contract shall embodied in the Policy document itself
(c) A marine insurance contract shall contain the following:
(d) The name of the assured, or of some person who effects the insurance on his behalf;
1. the subject-matter insured and the risk insured against;
2. the voyage, or period of time, or both, as the case may be, covered by the insurance;
3. the sum or sums insured;
4. the name or names of insurer or insurers