A contract of insurance is based on utmost good faith contract-comment

Yes, it is definite that a contract of insurance is based on utmost good faith. Faith forms the basis of a contract of insurance. For example, suppose, if I am a heart patient and I am planning to take-up a medical insurance, then I should inform the insurance company regarding this. This is because in the later stages if the truth is revealed to the company, then the insurance is forfeited, since I have breached the contract. Similarly, the insurance company must disclose all the hidden costs and terms and conditions to me at the time of signing the insurance, else the contract will stand useless at the later stage. Thus, both the insurer and the insured should have faith in each other and in the contract signed by them.