Material non-disclosure
Insurance policies of any type are not worth the paper they are written on if you fail to make full and frank disclosure of all facts that might affect the risk that you wish to guard against.
In the case of Ashfaq v International Insurance Compay of Hanover PLC [2017], a property landlord found that out to his cost after neglecting to tell insurers that he was facing trial on an assault charge.
The man lodged a claim with insurers after a property that he let to students was gutted by fire. The proposal form for the insurance had specifically asked if he had any previous convictions or pending prosecutions, save in respect of motoring offences.
He answered that question in the negative although he was at the time awaiting trial on a common assault charge. He was subsequently convicted of that offence and received a £100 fine and a 24-month restraining order.
He launched proceedings against the insurers after they refused to indemnify him against his loss. His claim was, however, dismissed by a judge on the basis that it had no reasonable prospect of success. His non-disclosure of the pending prosecution was material and the insurers were entitled to refuse cover.
In dismissing his challenge to that decision, the Court of Appeal found that he had no viable argument that the relevant parts of the policy were unenforceable by virtue of the Unfair Terms in Consumer Contracts Regulations 1999.
The policy was commercial in nature, in that he was letting the property to students as a business, and he could not be viewed as a ‘consumer’ within the meaning of the Regulations. The insurers thus had an unanswerable defence to his claim.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
The benefits of writing articles for your organisation
How to create a profile for your organisation and publish for free.
No Falls Week. The importance of safe working at height
What to expect and what is on offer to avoid accidents.
Scottish Government action to reach net-zero targets
Retrofit expert group highlight critical actions needed.
A forward thinking, inclusive global community of members.
From engineered product life-spans, to their extension.
Circular economy in the built environment
A brief description from 2021. Where are we now?
Mental Health Awareness Week with ABS
Architects Benevolent Society programme of activity.
CLC publishes domestic retrofit competency framework
Roadmap of Skills for net zero.
May 13-19: Moving more for our mental health.
Understanding is key to conservation.
Open industry engagement survey seeks responses
Institutions and the importance of engagement.
National Retrofit Hub unveils new guide
Digital Building Logbooks and Retrofit: An Introduction.
Enhancing construction site reporting efficiency
Through digitisation and the digital revolution.
Noise in the built environment
BSRIA guide TG 20/2021.
17,000 people suffer conditions as a result of exposure to excessive noise at work.
Turning down the noise: Auditory health
A pervasive risk with far-reaching consequences.
Getting the most out of heat pumps and heating
How heat pumps work and how they work best.
Electrotechnical excellence, now open for entries.