It’s important that we, as a provider, do as much as possible to prevent non-disclosure and misunderstanding of cover. You can avoid these issues of non-disclosure by taking a few extra minutes to make sure you’ve completed your application form fully and completely. This will also help to make sure any future claims are paid.
Types of non-disclosure
Innocent non-disclosure
This is where the policyholder has acted honestly and reasonably in all of the circumstances (for example where they haven’t included information because the question on the application form was misleading or ambiguous). In these cases, we’ll pay the claim in full.
Innocent non-disclosure – a case study
Negligent non-disclosure
This is where the policyholder hasn’t taken reasonable care when completing their application form. In these cases, we’ll take into account the non-disclosed information and assume we’d been told about it at the start. We’ll then work out how much cover the price paid would have bought if we’d known.
Negligent non-disclosure – a case study
Deliberate or without any care non-disclosure
This is where the policyholder has knowingly or fraudulently given false information, or has acted without any care at all as to whether the information was correct or relevant to an insurer. In these cases we’ll decline the claim.
Deliberate non-disclosure – a case study
Next steps
If you would like more information you should talk to a financial adviser.
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