NOORBHOY v. THE FEDERAL MARINE INSURANCE CO.

NOORBHOY v. THE FEDERAL MARINE
INSURANCE CO.

D. C., Colombo, 17,346.

Marine insurance-Duty of the assured to describe fully the risk-Consequence of failure to do so.

    Insurance is a contract upon speculation. The special facts upon which the contingent chance is to be computed lie most commonly in the knowledge of the insured only.

    The underwriter trusts to his representations and proceeds upon confidence that he does not keep back any circumstances in his knowledge to mislead the underwriter into a belief that the circumstance does not exist, and to induce him to estimate the risk as if it did not exist. The keeping back such circumstance is a fraud, and therefore the policy is void.

    Although the suppression should happen through mistake without any fraudulent intention, yet still the underwriter is deceived and the policy is void, because the risk run is really different from the risk understood and intended to be run at the time of the agreement.

    IN this case the plaintiff sued the defendant company to recover the sum of Rs. 6,241 68 on a policy of insurance. The following special case, con

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