ABSTRACT
Section 17 Marine Insurance Act codified the common law and provided that a contract of insurance is a contract of the utmost good faith. The remedy of avoidance for breach of the duty of utmost good faith at the time of underwriting the contract of insurance has been replaced by the proportionate remedies set out in Schedule 1 of the Insurance Act. The considerable doubt that surrounded the application of the remedy of avoidance to post-contractual breaches of the duty of utmost good faith has been clarified, at least in relation to fraudulent claims, by section 12 Insurance Act. These changes to the duty of utmost good faith are reflected in section 14 Insurance Act. Section 14(1) provides that the remedy of avoidance for breach of the utmost good faith is abolished and the relevant part of section 17 Marine Insurance Act.
