My bike was recently stolen from outside my house. I reported it to my insurance company and while we were going through the formalities it turned out I’d forgotten to mention I got three points for speeding. Will they try to avoid paying out?
David Bramwell, Birmingham
Answered by Andrew Campbell, Solicitor and author of the MCN Law column for the last five years
When you enter a contract of insurance you have a duty to answer all of their questions accurately.
Where any misrepresentation was deliberate/reckless (eg where the customer knew, or did not care, that the info was untrue or misleading) then the insurer can refuse all claims.
Where the misrepresentation was careless the outcome depends on what would have happened if the insurer was given the correct information. If they still would have insured the customer but at a higher cost or on different terms (eg a higher excess), then they can reduce any pay-out by the additional cost or based on the different terms. If they would not have offered insurance, they can refuse to pay out, but must return the insurance premium.
I would call your insurer and explain the situation. Before doing so run your details, with the three points, through an insurance comparison website. If your insurer comes up in the results then you can be fairly confident they would have provided cover.
If there is a dispute you can refer it to the Financial Ombudsman to arbitrate.
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