Kuwait Court of Cassation principle number 1095

Insurance contract. The insured must disclose all circumstances known to the insurer at the time the contract is concluded. The insured's failure to act or provision of an incorrect statement capable of changing the subject matter of the risk or diminishing its significance. Its effect. The contract is voidable. Its condition. The truth emerges before the insured risk materializes. - The truth concerning the insured's circumstances emerging after the insured risk materializes. Its effect. Impermissibility of avoidance of the - 198 - Commercial insurance contract. Reason therefor. The risk materialized while the contract was in existence and the insurer's obligation to compensate became due for performance - The appealed judgment's rejection of the plea of nullity of the insurance contract because the risk materialized while the contract was in existence and the insurer's obligation to pay compensation became due for performance. Correct. Example.