Insurance: Utmost Good Faith and Fair Presentation Of The Risk

A recent case reaffirms the legal position on the question of what amounts to a fair presentation of a risk in the context of a non-disclosure dispute. The factual background was the sinking of a floating dock carrying a floating workshop during a voyage from Russia to Vietnam. The non-disclosure in question was an alleged non-disclosure of the fact that sea towage was permissible only in conditions of up to sea force 5 and with a maximum permissible wave height of 4.5 metres (these conditions having been determined by an assessment undertaken as part of a suite of documents prepared for the purposes of ensuring a safe voyage of the vessel). On the question of non-disclosure, this case reminds us that:

The pre-contractual duty to disclose...