Insurance disclosure query

Canadel

Just wondering is a person taking out insurance obliged to only answer the specific questions asked by the insurance company?

For example, If I have 2 penalty points on my licence, and the insurance company does not ask me if I have any points on the licence, am I legally obliged to inform them of the points on my licence? Or can I operate on a policy of "if they don't ask, don't tell".

Of course if they ask the question I would be obliged to answer truthfully and factually. But if they don't ask, is the onus on me to disclose such information?

Thanks

garbeth

Afaik you have a duty to disclose any material facts that you feel would affect your cover. If you don't then they may void the insurance and not pay out in the event of a crash. It may not appear when getting the quote but will be in the T&C's

Canadel

garbeth wrote: »

Afaik you have a duty to disclose any material facts that you feel would affect your cover. If you don't then they may void the insurance and not pay out in the event of a crash. It may not appear when getting the quote but will be in the T&C's

Ok, but considering all of the different factors which can affect an insurance quote, surely the onus isn't on the customer to disclose all relevant facts relating to their life under the assumption that it may affect their quote, without being asked to do so by the company, and/or unless providing penalty points info is stated as a requirement in the terms and conditions? (someone might be able to clarify whether it usually is in the terms and conditions) I mean, does one inform the company that they cross a non automatic railway crossing every day? Or that their neighbour is an erratic driver who regularly has near misses with their car? Or that the tyres on the car have not been changed in over a year? As you may feel they would all affect your cover too if you thought of them at the time.

edit: I'll have a read of the terms and conditions when I have a chance.

coylemj

Canadel wrote: »

Ok, but considering all of the different factors which can affect an insurance quote, surely the onus isn't on the customer to disclose all relevant facts relating to their life under the assumption that it may affect their quote, without being asked to do so by the company

That type of 'don't tell unless they ask' attitude doesn't stand up when it comes to insurance where there is a principle known (in Latin) as 'uberrimae fidei' which means 'utmost good faith' meaning that if there is any fact which may have a bearing on the policy, you must declare it.

Pro Hoc Vice

Canadel wrote: »

Just wondering is a person taking out insurance obliged to only answer the specific questions asked by the insurance company?

For example, If I have 2 penalty points on my licence, and the insurance company does not ask me if I have any points on the licence, am I legally obliged to inform them of the points on my licence? Or can I operate on a policy of "if they don't ask, don't tell".

Of course if they ask the question I would be obliged to answer truthfully and factually. But if they don't ask, is the onus on me to disclose such information?

Thanks

Look up Uberrimae Fidei.

CiniO

coylemj wrote: »

That type of 'don't tell unless they ask' attitude doesn't stand up when it comes to insurance where there is a principle known (in Latin) as 'uberrimae fidei' which means 'utmost good faith' meaning that if there is any fact which may have a bearing on the policy, you must declare it.

But how can a person which didn't have any contact with insurance market before know what facts can have bearing on the policy?

F.e. when I first started driving in Ireland, it would never even crossed my mind that penalty points, previous driving convictions, car modifications, etc.. can have any bearing on the car insurance policy.

Pro Hoc Vice

CiniO wrote: »

But how can a person which didn't have any contact with insurance market before know what facts can have bearing on the policy?

F.e. when I first started driving in Ireland, it would never even crossed my mind that penalty points, previous driving convictions, car modifications, etc.. can have any bearing on the car insurance policy.

A person can go to a professional broker.

CiniO

Pro Hoc Vice wrote: »

A person can go to a professional broker.

Well, why would they?


Insurer says something like "You need to tell us all the fact that you think might be relevant"....

And I think here's very big issue, as idea what's relevant might differ a lot between different people...

Pro Hoc Vice

CiniO wrote: »

Well, why would they?


Insurer says something like "You need to tell us all the fact that you think might be relevant"....

And I think here's very big issue, as idea what's relevant might differ a lot between different people...

Hence why going to a professional is a good idea. Would you give yourself legal advice or medical advice. If you read any proposal document or online insurance website it will say all that is required problem is most people don't read the terms and conditions. Up most good faith has been a cornerstone of insurance law for hundreds of years hardly the insurances companies fault you never asked or knew.

Stoolbend

It'll all be in the terms and conditions that get posted out to you.

Liam McPoyle

Canadel wrote: »

Just wondering is a person taking out insurance obliged to only answer the specific questions asked by the insurance company?

For example, If I have 2 penalty points on my licence, and the insurance company does not ask me if I have any points on the licence, am I legally obliged to inform them of the points on my licence? Or can I operate on a policy of "if they don't ask, don't tell".

Of course if they ask the question I would be obliged to answer truthfully and factually. But if they don't ask, is the onus on me to disclose such information?

Thanks

They will ask you.

CiniO

Saul T Nutzz wrote: »

They will ask you.

So does that mean, that I'm only obliged to inform them about material facts (which f.e. change during policy), but only those which they asked me when I was buying the policy?


F.e. when I purchase policy, they ask me how many penalty points I have. I answer none.
Few months into policy, I get 3 points, so I need to inform them, as it's material fact...

But f.e. they don't ask me what's my profession when I buy my policy,
So if I change my profession mid-policy, I don't need to inform them.

Right?

Liam McPoyle

CiniO wrote: »

So does that mean, that I'm only obliged to inform them about material facts (which f.e. change during policy), but one those which they asked me when I was buying the policy?

Is there a typo in the q man, I don't understand what you are asking.

CiniO

Saul T Nutzz wrote: »

Is there a typo in the q man, I don't understand what you are asking.

Corrected.

Liam McPoyle

CiniO wrote: »

So does that mean, that I'm only obliged to inform them about material facts (which f.e. change during policy), but only those which they asked me when I was buying the policy?


F.e. when I purchase policy, they ask me how many penalty points I have. I answer none.
Few months into policy, I get 3 points, so I need to inform them, as it's material fact...

But f.e. they don't ask me what's my profession when I buy my policy,
So if I change my profession mid-policy, I don't need to inform them.

Right?

All insurance operates on the assumption that the company knows nothing and that the person requesting cover knows everything.

The duty of disclosure is in operation prior to policy inception and is reopened at renewal.

There is no obligation to tell the insurer mid term about penalty points or pending convictions however the policy holder is obliged to disclose these things at renewal.

Insurers cover themselves at inception and renewal by issuing proposal forms or statements of fact as well as their terms of business and assumptions.

The insured is obliged to check these are correct and accurate and if they knowingly sign these documents that include incorrect information eg by saying they have no penalty points then the insurer is entitled to void the policy.

grogi

Pro Hoc Vice wrote: »

Hence why going to a professional is a good idea. Would you give yourself legal advice or medical advice. .

I consider Insurance Companies professional. As professional in the insurance business as can be. Why would I involve another person in this? If a broker can ask correct questions, why can't the company itself?

If you go to ER, do you take your GP with you to talk for you, or you speak with the doctor directly?

If you read any proposal document or online insurance website it will say all that is required problem is most people don't read the terms and conditions.

That's a different problem - and we agree on that.

mgbgt1978

Pro Hoc Vice wrote: »

Hence why going to a professional is a good idea. Would you give yourself legal advice or medical advice. If you read any proposal document or online insurance website it will say all that is required problem is most people don't read the terms and conditions. Up most good faith has been a cornerstone of insurance law for hundreds of years hardly the insurances companies fault you never asked or knew.

Well , I suppose it was 4:30am when this was posted, but with the utmost of respect please don't confuse poor Cinio with badly written Legalese....you'll just get him all revved-up when he can't find any references to this phrase online;).

grogi

Saul T Nutzz wrote: »

All insurance operates on the assumption that the company knows nothing and that the person requesting cover knows everything.

The duty of disclosure is in operation prior to policy inception and is reopened at renewal.

There is no obligation to tell the insurer mid term about penalty points or pending convictions however the policy holder is obliged to disclose these things at renewal.

Insurers cover themselves at inception and renewal by issuing proposal forms or statements of fact as well as their terms of business and assumptions.

The insured is obliged to check these are correct and accurate and if they knowingly sign these documents that include incorrect information eg by saying they have no penalty points then the insurer is entitled to void the policy.

On this note - can the Insurer require from the Insured to reveal the changes to the material facts when the contract is already in force?

From what I am reading in your post and other sources, Uberrima fides is limited by law strictly to the formation of the contract...

Liam McPoyle

grogi wrote: »

On this note - can the Insurer require from the Insured to reveal the changes to the material facts when the contract is already in force?

From what I am reading in your post and other sources, Uberrima fides is limited by law strictly to the formation of the contract...

They technically could however I'd imagine they would only impose such a stipulation on a policy holder they had suspicions about.