Concealment Law and Legal Definition
Concealment is the act of refraining from disclosure especially an act by which one prevents or hinders the discovery of something; a cover-up. It is an affirmative act intended or known to be likely to keep another from learning of a fact of which s/he would otherwise have learned. Such affirmative action is always equivalent to a misrepresentation and has any effect that a misrepresentation would have For example, the unlawful suppression of any fact or circumstance by one of the parties to a contract from the other, which in justice ought to be made known, will amount to concealment.
Under insurance law, concealment refers to the insured's intentional withholding from the insurer material facts that increase the insurer's risk and that in good faith ought to be disclosed.The insured is required to disclose all the circumstances within his/her own knowledge only, which increase the risk. However s/he is not bound to disclose general circumstances which apply to all policies of a particular description, even if they may greatly increase the risk.
