"An insurance contract is considered as a contract of utmost good faith and not of caveat emptor ?" Explain.

An insurance contract is based on the principle of utmost good faith. The principle of utmost good faith is supported by three important legal doctrines: Representations. Concealment (Intentional failure of the applicant for insurance to reveal a material fact to the Insurer). Breach of warranty (Promise made by the insured in the Contract). Each Party (Insured and Insurer) to the contract is entitled to rely on good faith upon the representations of the other. Caveat emptor places the onus on the buyer to thoroughly examine a product or service before purchasing. It assumes that buyers have sufficient knowledge and capability to assess the product's value and risks. The rule of Caveat Emptor (Let the Buyer Beware) does not generally apply. The Insurer believes in the representations of the Insured. Representations of insured are statements of his or her age, weight, height, occupation, state of health, family and personal history. And from the insurer's side, it is intricate and highly technical. Here both the parties are under an obligation not to attempt to deceive or withhold material information from the other. The insurance contract is voidable at the insurer's option if the representation is material, (If the Insurer knows the true facts, the policy would not have been issued or would have been issued on different terms) False, Reliance (The Insurer relies on the misrepresentation in issuing the policy at a specified Premium) and Innocent or unintentional misrepresentation.