Madam Tope insured her shop premises for the sum of D60,000, when insuring the shop,she did not tell the Insurance company that she cooks in the shop, but t...

The insurance principle that was breached by Madam Tope is utmost good faith. Utmost good faith means that the insured should disclose all relevant information to the insurer in good faith, including any potential risks or hazards associated with the insured property. By not disclosing that she cooks in the shop and instead telling the insurer that she sells second-hand clothes, Madam Tope failed to provide the insurer with all the relevant information required to make a fair assessment of the risk involved. This breach of utmost good faith may result in the insurer denying Madam Tope's claim for compensation due to the misrepresentation of the nature of the shop's activities.