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India: Supreme Court Judgement: M/S Modern Insulators Ltd vs The Oriental Insurance Co. Ltd (Civil Appeal No.-006895-006895 – 1997) (22 February, 2000) – When insurer does not disclose any exclusion to the insured, it cannot enforce the same in the event of a claim.

“It is the fundamental principle of insurance law that utmost good faith must be observed by the contracting parties and good fath forbids either party from non-disclosure of the lads which the parties known. The insured has a duty to disclose and similarly it is the duty of the insurance company and its agents to disclose .ill material facts in their knowledge since obligation of good faith applies to both equally.

In view of the above settled position of law we are of the opinion that the view expressed by the National Commission is not correct. As the above terms and conditions of the standard policy wherein the exclusion clause was included, were neither a part of the contract of insurance nor disclosed to the appellant respondent cannot. claim the benefit of the said exclusion clause. Therefore.. the finding of the National Commission is untenable in law.”

“It is settled position of law that in an appeal the parties cannot urge new facts.”

Link to the judgement here