LML4805
Assignment 2 Semester 1 2026
Unique number:
Due Date: April 2026
This document includes:
Helpful answers and guidelines
Detailed explanations and/ or calculations
References
Connect with the tutor on
+27 81 278 3372
, QUESTION 1 (2 ANSWERS PROVIDED)
In this matter, the insurer cannot rely on a positive misrepresentation. Velly did not
make any incorrect statement to the insurer because no questions about his health
were asked in the proposal form. A positive misrepresentation requires an actual
false statement made by the insured which induces the insurer to enter into the
contract.1 Since no such statement exists on these facts, the insurer has no basis to
avoid liability on this ground.
The issue therefore turns on negative misrepresentation, namely non disclosure. In
South African insurance law, the insured has a duty to disclose all material facts
known to him before the contract is concluded.
1
Reinecke et al General Principles of Insurance Law para 193
© Study Shack 2026. All rights Reserved +27 81 278 3372
Assignment 2 Semester 1 2026
Unique number:
Due Date: April 2026
This document includes:
Helpful answers and guidelines
Detailed explanations and/ or calculations
References
Connect with the tutor on
+27 81 278 3372
, QUESTION 1 (2 ANSWERS PROVIDED)
In this matter, the insurer cannot rely on a positive misrepresentation. Velly did not
make any incorrect statement to the insurer because no questions about his health
were asked in the proposal form. A positive misrepresentation requires an actual
false statement made by the insured which induces the insurer to enter into the
contract.1 Since no such statement exists on these facts, the insurer has no basis to
avoid liability on this ground.
The issue therefore turns on negative misrepresentation, namely non disclosure. In
South African insurance law, the insured has a duty to disclose all material facts
known to him before the contract is concluded.
1
Reinecke et al General Principles of Insurance Law para 193
© Study Shack 2026. All rights Reserved +27 81 278 3372
