Declined house insurance claim CCJ

FlameCloud

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

Your partner needs to make a complaint to the insurance company and make it clear that if it isn't resolved it will be sent to the Ombudsman for a decision.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

2.  The policy can only be voided by the insurance company if they can show that your partner hadn't taken reasonable care when completing the form and also be able to state categorically that had they known of the CCJ then they would have refused cover.  In my opinion your cannot be assumed to have NOT taken reasonable care and when a form is signed a declaration is made with respect to honesty.   They cannot simply say that the are refusing cover because they suspect that they have been lied to but they can say that the risk would not have been covered if they had known of the CCJ  if that is genuinely the case. To me it would seem odd that an insurers  don't cover people with CCJs.  That is an important nuance you should understand. 

If they would have accepted the risk but charged a higher premium, they can either ask for the extra premium and pay the claim or scale back their settlement of the claim by the percentage of premium underpayment.

Unless they can show a reasonable lack of care when your partner completed the form AND that they wouldn't have accepted the risk then they will in my opinion probably lose the ombudsman complaint.

Good luck.

Your part 2 is incorrect - an insurer can still avoid the policy in the case of innocent non disclosure if they can show they would not have taken on the risk. They don’t have to show a lack of reasonable care on the part of the insured at all to avoid - all that does is affect the premium Return. 

uk1

FlameCloud said:

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

Your partner needs to make a complaint to the insurance company and make it clear that if it isn't resolved it will be sent to the Ombudsman for a decision.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

2.  The policy can only be voided by the insurance company if they can show that your partner hadn't taken reasonable care when completing the form and also be able to state categorically that had they known of the CCJ then they would have refused cover.  In my opinion your cannot be assumed to have NOT taken reasonable care and when a form is signed a declaration is made with respect to honesty.   They cannot simply say that the are refusing cover because they suspect that they have been lied to but they can say that the risk would not have been covered if they had known of the CCJ  if that is genuinely the case. To me it would seem odd that an insurers  don't cover people with CCJs.  That is an important nuance you should understand. 

If they would have accepted the risk but charged a higher premium, they can either ask for the extra premium and pay the claim or scale back their settlement of the claim by the percentage of premium underpayment.

Unless they can show a reasonable lack of care when your partner completed the form AND that they wouldn't have accepted the risk then they will in my opinion probably lose the ombudsman complaint.

Good luck.

Your part 2 is incorrect - an insurer can still avoid the policy in the case of innocent non disclosure if they can show they would not have taken on the risk. They don’t have to show a lack of reasonable care on the part of the insured at all to avoid - all that does is affect the premium Return. 

You are correct ... I should have been clearer. It was late .....

To be clearer.  They cannot refuse cover simply on the basis of a simple non-disclosure.  But can do if they GENUINELY wouldn't have accepted the risk if the disclosure had been made. 

The point I was trying to make was that they cannot refuse cover simply because they presume the non-dsclosure to be wilful.

Thrugelmir

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

Ignorance is no excuse.

uk1

Thrugelmir said:

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

Ignorance is no excuse.

I didn't say it was. 

Reread my post. 

I stated clearly what options are open to the insurer if a proposer fails to disclose a material fact.

Thrugelmir

uk1 said:

Thrugelmir said:

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

Ignorance is no excuse.

I didn't say it was. 

Reread my post. 

I stated clearly what options are open to the insurer if a proposer fails to disclose a material fact.

Principles of insurance haven't changed in decades. 

uk1

Thrugelmir said:

uk1 said:

Thrugelmir said:

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

Ignorance is no excuse.

I didn't say it was. 

Reread my post. 

I stated clearly what options are open to the insurer if a proposer fails to disclose a material fact.

Principles of insurance haven't changed in decades. 

To state that consumer protection hasn't changed in decades is absurd.  Where have you been?

You wrongly told the OP that if they made an error on the proposal then the insurer could automatically void a policy when making a claim. That advice was wrong and unhelpful.

jimbo6977

Thrugelmir said:

uk1 said:

Thrugelmir said:

uk1 said:

chesca84 said:

Asking for advice if anyone can help?
My partner bought a home for us in December & took out an insurance policy in his name & paid the premium in full. I was named on the policy as living in the house but the policy is not in my name. We have recently attempted to make a claim for issues with the drains in the garden. When my partner rang them up to ask advice & see if our insurance covered this they said they needed to credit check him & me. They did the credit check on me without my consent. The person on the phone then said to my partner, "do you know (my name) has a CCJ for £1898 from 2017?" to which my partner stated no & he was then informed that our insurer may not cover us and they needed to refer the claim to another department & would be in touch. 

A bit of my background...I had problems with debt prior to getting together with my current partner, I had a CCJ and other debts that were eventually included in a DRO at the end of 2017 so although the CCJ is still on my credit file it's "settled/written off" as I no longer need to make payments towards it. Although my partner knows I have previous issues & a debt relief order I have never gone into the full details as we didn't feel it necessary. I didn't want him to be financially linked to me as he has a good credit history hence the mortgage in his name, insurance in his name no joint bank accounts etc. I'm in a different position now as working as a qualified midwife for nearly 2 years, no further bad credit or debt but my DRO will be on my file for another 3 years. 

So back to today & the insurers have wrote to my partner to say his insurance is void due to my CCJ. 

1. Can anyone tell me why they needed to credit check us at the point of making a claim even though the premium was paid in full? And were they legally allowed to credit check me without my permission? And if they were going to do a credit check shouldn't it have been at the point of taking the insurance out? 

2. What can I do about the insurers disclosing my private financial information to my partner? I know from my job that data protection and sharing information incorrectly can have dire consequences. My partner has no issue with my past financial history but it was not the insurance representatives place to share that information with him...I could be in an abusive relationship for all she knew. I want to ensure this does not happen to anyone else.

3. Why would my CCJ cause the insurance to be void? The insurance is not in my name and has no bearing on the broken drains in the garden. I don't understand how it works so if anyone can offer any clarity I would be grateful. 

4. And finally if anyone can offer any advice with regards to my DRO...when applying for any insurance/finance products in the future what do i declare? As my CCJ is on my file but not open as it formed part of my DRO do I still have to declare it? I have declared my DRO when opening my bank account before but didn't think to mention my CCJ as that to me is part of the DRO if that makes sense? Maybe I've been thinking about it incorrectly? I've not gone out of my way to hide it but because in my head it's settled I've not thought about how that would still impact things.

If anyone can shed any light on any of my issues I would be really grateful thank you.

1.  Your partner should make clear that the insurance proposal was made honestly and made based on all of the facts known to him and that no known material facts were purposefully witheld.  He should make it clear that he was unaware of the CCJ and would have declared it if it were known.

Ignorance is no excuse.

I didn't say it was. 

Reread my post. 

I stated clearly what options are open to the insurer if a proposer fails to disclose a material fact.

Principles of insurance haven't changed in decades. 

In fact they have, mostly with the ditching of utmost good faith in 2015.
No that any of this helps the OP, whose partner ought to get on with pursuing a complaint, in writing, following their insurer's complaints policy. 

Aretnap

FlameCloud said:

Your part 2 is incorrect - an insurer can still avoid the policy in the case of innocent non disclosure if they can show they would not have taken on the risk. They don’t have to show a lack of reasonable care on the part of the insured at all to avoid - all that does is affect the premium Return. 

Can't they? I'm not sure that's correct.

The Consumer Insurance Act imposes a duty on the consumer to take reasonable care to avoid making a misrepresentation, then goes on to say that the insurer only has a remedy against the consumer if he has breached this duty. No lack of reasonable care = nothing that the insurer can do.

The Financial Ombudsman is also clear on the point: "If the customer did take reasonable care, then even if there was a misrepresentation, you can’t take any action against the customer."

Are you perhaps confusing innocent misrepresentation with careless misrepresentation (ie where there has been a lack of care, but no intention to mislead)?.

A classic example of non-disclosure which involves no lack of care is where the consumer has bought a second car unaware that it has been modified, and declares no modifications to the insurer. The Ombudsman has ruled many times that if the modifications would not have been obvious to the average motorist, the insurer cannot void the policy, even if they would not have offered cover had they known about the modifications. (Example here).

Whether the Ombudsman would treat the OP's partner's scenario as analogous to the modified second hand car I have no idea. Certainly it's easier to ask your partner if they have any CCJs than it is to compare everything under your car's bonnet with the manufacturer's specifications, so there's an argument that if the question about CCJs was clear enough, the customer should have done more to ensure that the answer he gave was accurate. On the other hand the Ombudsman's guidance does say "It might not be reasonable to expect a customer... to know off the top of their head the answer for a joint policyholder", so perhaps it's not an absurd argument to make.

Certainly the OP's partner has nothing to lose by making the argument; and as he now has a cancelled policy on his record which will make getting insurance difficult and expensive in future it's strongly in his interests to do anything he can to get the cancellation overturned.

Aretnap

Thrugelmir said:

Principles of insurance haven't changed in decades. 

Cough cough.

uk1

Aretnap said:

FlameCloud said:

Your part 2 is incorrect - an insurer can still avoid the policy in the case of innocent non disclosure if they can show they would not have taken on the risk. They don’t have to show a lack of reasonable care on the part of the insured at all to avoid - all that does is affect the premium Return. 

Can't they? I'm not sure that's correct.

The Consumer Insurance Act imposes a duty on the consumer to take reasonable care to avoid making a misrepresentation, then goes on to say that the insurer only has a remedy against the consumer if he has breached this duty. No lack of reasonable care = nothing that the insurer can do.

The Financial Ombudsman is also clear on the point: "If the customer did take reasonable care, then even if there was a misrepresentation, you can’t take any action against the customer."

Are you perhaps confusing innocent misrepresentation with careless misrepresentation (ie where there has been a lack of care, but no intention to mislead)?.

A classic example of non-disclosure which involves no lack of care is where the consumer has bought a second car unaware that it has been modified, and declares no modifications to the insurer. The Ombudsman has ruled many times that if the modifications would not have been obvious to the average motorist, the insurer cannot void the policy, even if they would not have offered cover had they known about the modifications. (Example here).

Whether the Ombudsman would treat the OP's partner's scenario as analogous to the modified second hand car I have no idea. Certainly it's easier to ask your partner if they have any CCJs than it is to compare everything under your car's bonnet with the manufacturer's specifications, so there's an argument that if the question about CCJs was clear enough, the customer should have done more to ensure that the answer he gave was accurate. On the other hand the Ombudsman's guidance does say "It might not be reasonable to expect a customer... to know off the top of their head the answer for a joint policyholder", so perhaps it's not an absurd argument to make.

Certainly the OP's partner has nothing to lose by making the argument; and as he now has a cancelled policy on his record which will make getting insurance difficult and expensive in future it's strongly in his interests to do anything he can to get the cancellation overturned.

Hi, I agree with your general point but if you apply for say house insurance and fail to declare that the house is built on an old coal mine, you might have made the proposal in ignorance and in good faith, but if you then make a subsidence claim when the house dissapears into a hole, the insurer might accept that you genuinely didn't know, but could reasonably refuse the claim on the basis that if they had known of the fact then they wouldn't have insured.

Insurers should not be compelled to accept risks that they would have declined to have accept if they had known.  That seems both obvious and fair.   Otherwise you have a "cheats charter" where you can fail to disclose but have guaranteed cover. . That seems to me to be IMHO reasonable and I think in line with ombudsmans' decisions.