law: Marine Insurance Act, 1963 
  20. Disclosure by assured 
  (1) Subject to the
  
  provisions of this section, the assured must disclose to the insurer, before
  
  the contract is concluded, every material circumstance which, is known to the
  
  assured, and the assured is deemed to know every circumstance which, in the
  
  ordinary course of business, ought to be known to him. If the assured fails to
  
  make such disclosure, the insurer may avoid the contract.
  (2) Every circumstance
  
  is material which would influence the judgment of a prudent insurer in fixing
  
  the premium, or determining whether he will take the risk.
  (3) In the absence of
  
  inquiry the following circumstances need not be disclosed, namely:-
  (a) any circumstance
  
  which diminishes the risk;
  (b) any circumstance which is known or
  
  presumed to be known to the insurer. The insurer is presumed to know matters of
  
  common notoriety or knowledge, and matters which an insurer in the ordinary
  
  course of his business as such, ought to know;
  (c) any circumstance
  
  as to which information is waived by the insurer;
  (d) any circumstance which it is superfluous
  
  to disclose by reason of any express or implied warranty.
  (4) Whether any
  
  particular circumstance, which is not disclosed, be material or not is, in each
  
  case,  question of fact.
  (5) The term
  
  "circumstance" includes any communication made to, or information
  
  received by, the assured.