Cancelled insurance policy

onomatopoeia99

TooManyPoints wrote: »

. Insurance policies depend on both sides demonstrating "Utmost Good Faith".

In consumer contracts of insurance they don't, while the insured must answer honestly, the insurer has to ask. Carter vs Boehm is no longer relevant precedent except in business to business insurance.

Manxman_in_exile

onomatopoeia99 wrote: »

In consumer contracts of insurance they don't, while the insured must answer honestly, the insurer has to ask. Carter vs Boehm is no longer relevant precedent except in business to business insurance.

In #3 the OP says his brother was asked if the details remained the same and it would seem he replied that they were. I'm not sure if this was said dishonestly but (as somebody else pointed out) the insurance was renewed just a month after change of RK.


To answer my curiosity about this, how would the insurance company only pick up on this now? Do they routinely cross-check RK details with DVLA or has the OP revealed the change when trying to renew now?

Manxman_in_exile

TooManyPoints wrote: »

So your brother renewed his policy in June '18 when he had transferred the registration of the car to you? He didn't declare that nor did he declare the accident that had occurred.

I can see why the insurers are miffed. Insurance policies depend on both sides demonstrating "Utmost Good Faith". Your brother withheld material facts from his insurers and that is why they cancelled the policy. As mentioned, there is also the suspicion of "fronting" in the first instance which must also have played a part in their decision. The facts withheld may not have affected the premium (though that is arguable). It is because they were withheld that caused the cancellation. I don't hold out much hope if you appeal to the Ombudsman.

I don't think it's clear that the accident in January this year wasn't declared. The OP doesn't say.


Otherwise, I agree.

AdrianC

Manxman_in_exile wrote: »

To answer my curiosity about this, how would the insurance company only pick up on this now? Do they routinely cross-check RK details with DVLA or has the OP revealed the change when trying to renew now?

Because they've looked at the V5C as part of the claim... Write-off?

And they've seen that the "named driver" (shiny new licence) is actually the RK, and had been for over a year and a half at the time of the collision, three-quarters of the time they'd held a licence.

If that doesn't scream "fronting", nothing will.

no1catman

So, if the insurance has been cancelled - is the car still being driven? That is another uninsured vehicle on the road - liable to Police stop = confiscated vehicle!! Or is OP using other methods of transport/

TooManyPoints

I don't think it's clear that the accident in January this year wasn't declared. The OP doesn't say.

Indeed he doesn't. But he does say this:

Had an accident (non fault) in January this year and other party paid out and now insurance have said due to not declaring that the details had changed of registered keeper they have voided insurance from June 2018-May 2019.

There's no indication that this non-disclosure is disputed.

I imagine the principle reason for voiding the policy is the suspicion of "fronting" from the outset:

I have been insured as additional driver with my brother being main driver since June 2016, he was registered keeper up until May 2017 and then I became registered keeper.

Being the suspicious souls that they are, they must have asked themselves why this was so. Especially as, in June 2016 the OP was a provisional licence holder (when presumably his brother had a full licence). They might also ask themselves why the RK had been changed, just six months or so after the OP had passed his test.The Ombudsman may well consider the same questions.

NisarSadiq

When I reported the accident that's when our insurance said the registered keeper name had changed and asked why? So I let them know it was a gift from my brother and I hadn't payed him any money and that he had told them beforehand. On the policy start date for 2018-2019 it still had him as registered keeper.

TooManyPoints

On the policy start date for 2018-2019 it still had him as registered keeper.

...he was registered keeper up until May 2017 and then I became registered keeper.

Curiouser and curiouser !!!

DoaM

Depends on how you interpret the word it ... is that the V5C or the Insurance Policy. The latter would be part of the issue (of cancellation) but with the OP being consistent in his story; the former would be a change in the story.

TooManyPoints

I think I’ll cut to the chase. I think the problem you have is that your insurers have discovered these facts (whatever they may be) and have drawn some conclusions. Let me say what I think your insurers have concluded:

That the car was yours from the outset and for reasons best known to you (probably in an effort to see lower premiums) you registered it in your brother’s name and took out a policy in his name with him as the owner/registered keeper and you as a named driver. Since then you transferred the ownership and registration to yourself (without payment) but instead of informing the insurers, continued to see the vehicle insured under the policy which your brother originally took out, when he stated that he was the owner and the Registered Keeper. I also think they have concluded that the original proposal (or a subsequent renewal, depending on the correct dates) contained a false declaration and that is why they have voided the policy.

Once the vehicle no longer belonged to your brother he no longer had an insurable interest in it and this fact should have been declared. Had you left the ownership/registration as it was I doubt this would have come to light.

Of course it doesn’t matter at all what think and I may well be wrong, but I believe that is the situation you will need to remedy. I see the only way of doing that is via the Ombudsman and the best of luck with that.