We are hearing very frequently now of claims on Critical illness policies being turned down because of what the Insurer perceives to be non-disclosure, whilst the majority of the public believe to be irrelevant to the risk insured.
Let me share a personal experience. I applied for and was accepted for a household insurance. When I insisted that my Insurance Broker disclose to the insurer that I had been made bankrupt seven years earlier, and therefore discharged five years earlier, my cover was immediately withdrawn. I switched to another insurer who paid a claim of £1,500 seven months later.
If I had not insisted on this disclosure I would have been happily getting on with my life, thinking that I was insured, so any claim would be paid, whereas in fact this was not true.
In the past I have also been involved in the settlement of claims. When claims are refused, in the overwhelming majority of cases it is for non-disclosure. 1
My advice is to make a full disclosure in writing. Ask for written confirmation that you have done so.
If the insurance is not affected by the disclosure, this has cost you only the price of a stamp. If the insurance is cancelled you will have time to insure elsewhere and your premium will be refunded.
If you do not fully disclose all material facts you never know whether your insurance will be in force when it is needed. You risk refusal of a claim and retention of the premium paid or non- disclosure.
Please e-mail me if you would like a draft.wording of a letter you can send to your insurer dealing with this.
John Tegg
Accident and Sickness cover that pays for up to 60 months for Clients within IVA's.
Tel: 0845 673 9999
e-mail:
quotemeplease@asu4iva.co.uk
www.asu4iva.co.uk
