Kuwait Court of Cassation principle number 3143

The insured must clearly disclose, at the time of concluding the contract, all circumstances known to him which the insurer has an interest in knowing in order to assess the risks it assumes. His silence in this regard or his provision of an incorrect statement such as would alter the subject of the risk or diminish its significance in the insurer’s view. Its effect. The insurance contract is voidable in the insurer’s interest, whether the insured acted in good or bad faith. Discovery of the truth before the risk materializes. The insurer may seek annulment of the contract unless the insured accepts an increase in the premium proportionate to the increase in the risk. Disclosure of the truth after the risk materializes does not permit the insurer to seek annulment of the contract, because the risk has materialized while the contract subsists and its obligation to indemnify has become due for performance, so it cannot evade it through annulment. - 585 - Obligation