Concealment
The term concealment is used where an insured person withhold (or not disclose, or hide) material facts or circumstances from the insurance company. In short it is hiding the truth. A material fact refers to important information. Material facts can also be described as facts one is legally or morally bound to declare.
An example in car insurance could be that the insured declared that the car is fitted with an alarm system and immobiliser, meanwhile none of this is true. This will be called fraudulent concealment as it is the deliberate or intentional withholding of information with the intent to deceive the insurance company and obtain insurance cover; which the insurer would not have granted if the true facts were known.
The consequences of concealment could be very serious as it provides sufficient grounds to the insurance company to rescind (set aside or cancel) the insurance contract. Utmost good faith is one of the cornerstones of insurance. The Insurance Company may decide not to cancel the policy but only refuse to pay out the specific claim, depending on the circumstances of the specific case. For further details see also misrepresentation.