Car insurance

tomterm8

rog2 wrote: »

Please could you tell me, or point to a link, that will confirm what your points as legally correct and I will, happily, accept what you are saying.

Pretty much any insurance law book described the doctrine I am talking about. For example, http://books.google.co.uk/books?id=gHXlP3x9TesC&pg=PA85&dq=insurance+law+utmost+good+faith#PPA89,M1 (the relevant section starts on p 83).

The only disagreement can really be over whether it is a material fact... if you think that under no circumstances would an insurer charge more for the policy, or reject an applicant if they knew the applicant had been bankrupt, it obviously isn't a material fact. Otherwise it is.

In terms of the credit contract, I don't agree. There is no legal duty when negotiating a credit contract to disclose the fact you have been bankrupt unless they ask you. It is an area where the normal rule of law (caveat emptor) applies.

dottydora

rog2 wrote: »

Now that I can understand - I was with Royal and Sun Alliance when I was declared bankrupt. I had cancelled my policy a month before my br date.

I am, now, with Norwich Union (AVIVA) and have just trawled through the 35 page policy booklet, plus the four pages of 'important information' that is attached to the actual certificate. Whilst there are several references to the use of credit searches, by the insurer, in order to minimise fraud, along with their rights to report any potential 'fraudulent activity' to the relevant authorities, there is no mention whatsoever of the 'bankruptcy', whether actual or previous, of the insured.

On both the N.U. and Swift they use the words bankruptcy and state that if you go bankrupt during the life of the policy they have a right to terminate it (or words similar) but it is clear. Same with my contents insurance (Kwik Fit) which is why I felt it best just to check for my own peace of mind more than anything.

rog2

tomterm8 wrote: »

Pretty much any insurance law book described the doctrine I am talking about. For example, http://books.google.co.uk/books?id=gHXlP3x9TesC&pg=PA85&dq=insurance+law+utmost+good+faith#PPA89,M1 (the relevant section starts on p 83).

The only disagreement can really be over whether it is a material fact... if you think that under no circumstances would an insurer charge more for the policy, or reject an applicant if they knew the applicant had been bankrupt, it obviously isn't a material fact. Otherwise it is.

In terms of the credit contract, I don't agree. There is no legal duty when negotiating a credit contract to disclose the fact you have been bankrupt unless they ask you. It is an area where the normal rule of law (caveat emptor) applies.

Thank you - I have read through that link and I honestly can not see how it relates to the topic in question - maybe it is because I feel that it is not a material fact. I also notice that this publication refers specifically to 'Marine Law' and the insurance of ships.

However there is one point, in the article with which I agree fully and would never advocate otherwise:

"If an assured is asked a question, he must answer truthfully regardless of the materiality of the question to the risk. If he gives a false or untruthful answer with the intention of deceiving the insurer, though it may not be a material fact, this would constitute a breach of the duty of utmost good faith."

In terms of negociating a credit contract, the fact that a person had been bankrupt is there to see, by the creditor, on any standard credit check that is made during a six year period from the discharged bankrupt's date of bankruptcy. The decision to offer credit is up to the creditor - some creditors will consider a discharged bankrupt to be a bad risk and will either decline the request for credit or attach conditions - that is their right.

maxmycardagain

what i totally forgot when taking insurance spread over a year was that it is basically a HP agreement, however it was granted, and the OR never asked, so i didnt offer... seems fair to me.

rog2

dottydora wrote: »

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On both the N.U. and Swift they use the words bankruptcy and state that if you go bankrupt during the life of the policy they have a right to terminate it (or words similar) but it is clear.

Perhaps they have changed, dd - but I promise you that there is no mention of bankruptcy on my policy (or at least on the documents that they have sent me).

It does state, under the heading of 'MATERIAL FACTS', that:

"All material facts must be disclosed. Failure to do so could invalidate the policy. A material fact is one which is likely to influence an assurer in the acceptance and assessment of the application e.g. a young or inexperienced driver or any offence (including non motor related offences such as fraud, robery, theft or handling of stolen goods.) or prosecutions pending or infirmities of any driver. If you are in any doubt as to whether a fact is material then it should be disclosed to the insurer."

This, I believe, is the point that tomterm is making - however, bankruptcy is not an offence (unless, of course, fraud is involved) nor, in my opinion, can it be classed as a 'driver infirmity' so I would not consider my status as a discharged bankrupt to be a 'Material Fact'.

That said, I did inform my Insurance Broker of my, then impending, bankruptcy as the reason that I was cancelling my Insurance at the time, and it was noted on my file. I am currently insured through the same broker, so I am not 'avoiding' the disclosure of my status - it simply has not been mentioned.