Ever wondered what would happen if you incorrectly filled in an insurance application?

Across the insurance industry 1-2% of claims are declined due to non-disclosure, but about 10% of complaints arise from this issue.

Non-disclosure is where information that could impact a decision to provide cover is not given.

Sometimes this could be a genuine mistake or a misunderstanding.

In other cases, it could be someone deliberately leaving out something important.

An example is the question “Have you ever had a previous insurance claim declined?”

Even when arranging contents insurance, the fact that you have had a vehicle claim declined, for drink driving say, is relevant.

A person who mistakenly withheld information about being declined for car insurance ended up almost losing their house. One failure to disclose snowballed as all their

insurances were cancelled and insurance companies subsequently refused to accept them as a client.

Fortunately, we were able to help them navigate the system and become reinsured, but not without a lot of stress and extra expense for the person.

If you are not sure if something is relevant or important, disclose it and provide an explanation if needed. Most youthful mistakes are not held against you forever.

Tips for consumers:

1. Answer all of the questions on the insurance application, even if you don’t think they are relevant.

2. Contact your insurer if you forgot to include something on the application.

3. If someone else fills in the insurance application, you must read through it carefully before signing it.

4. When you renew house, contents or vehicle insurance, tell the insurer about any events (convictions, speeding, accidents, losses, etc.) that have happened

since the last renewal.

5. If you can’t remember your full medical history, ask your doctor for a copy of your medical notes, and double-check the insurance application.

6. Make sure you keep a record of your interactions with insurers. Don’t rely on verbal agreements.

If you fail to disclose, you run the risk of never being insurable again, so if in doubt, leave it in. Don’t guess!