ABSTRACT
Consent is voidable by one party if that party was induced by the other to contract on the basis of wrong information (misrepresentation) or insufficient information (non-disclosure). Factually no bright line can be drawn between misrepresentation and non-disclosure. An operative misrepresentation is an untrue statement of fact by the insured that has the effect of inducing the insurer to make the contract of insurance. In the event of an operative misrepresentation the main remedy is the same as that for non-disclosure: rescission. For a representation to be a mis representation it must be substantially untrue. For this purpose it will be read in context and on the assumption that the representor and representee were reasonable people; the truth of a statement is judged objectively. A statement is substantially untrue if the degree of inaccuracy would be material to a reasonable representee – a prudent insurer.
