Uberrimae Fides in Marine Insurance Essay Example | Topics and Well Written Essays - 1500 words

Uberrimae Fides in Marine Insurance - Essay Example This has left the concerned authorities to critically analyze the nature, history, application and scope of Uberrima Fides in Marine Insurance. In broader terms Uberrima Fides is used to disclose all the material that is to be traded through marines. For instance, as per this law both the parties i.e. issuer and receiver has to mention all the peculiar details to the insurer in order to certify that the traded material does not violate any of the marine insurance laws. Furthermore, there is full duty to the facts and figures of the disclosed material because majority of the information about enclosed material is kept hidden by the two parties. However, under this law they are obliged to mention each and every detail of the materials enclosed3. A lot of goods including machines, plants, household or commercial products are transported either by land, sea or air4. This merchandize incurs some transportation cost commonly known as fright charges and the law which covers all the indemnit y or destruction of cargo is the Marine Insurance. The Marine Insurance companies either operating privately or in association with the government agencies have to make certain that the goods they are transporting are not violating the rules and regulations of the marine transportation through any means5. For this purpose they make use of Uberrima Fides in order to seek details of the disclosed material from the applicants of marine insurance. Though it seems very simple to mention details about the disclosed material from the insurer’s point of view, yet it is a very complex and highly law governing procedure which needs to be done under the obligations set by Uberrimae Fides6. The duty of Uberrima Fides in Marine Insurance The Duty of Uberrimae Fides in Marine Insurance was created hundreds of years back by the British Marine Forces in order to keep check and ascertain the insurance of transported material through marines. As per the Marine Law, vestigial insurance is used so as to define Uberrimae Fides7. Since insuring the risk of damage and destruction during the cargo transportation is a crucial matter and involves high level of complexities therefore historically Uberrima Fides were used to insure that highest standards of Good Faith are maintained between both the parties. Moreover, on the economic grounds Uberrimae Fides provides protection to the insurers through which they are no longer in danger due to insuring some poor or damageable material8. For instance, when centuries ago British Marines were used to allow transportation of goods through sea there was no law to certify the risks of damage and the associated agencies were forced to rely upon the information provided by the issuer of goods. Hence, if during the sail some damages occurred then insurer had to compensate those damages. Therefore it was found necessary to make laws in order to obtain peculiar information related to the goods to be transported9. Nature of Uberrima Fides The n ature of Uberrimae fides is of pre contractual duty. It is an obligatory procedure by which both the parties have to make certain that the good they are issuing or receiving through marine transportation will not incur unnecessary damages and compensations to the marine insurance companies10. Uberrimae Fides is functioned somewhat in the same way as the misrepresentation is operated in fraudulent