Get your insurance form right!

Insurance companies tell us the importance they attach to the information on our insurance proposal forms. Well guess what? They mean it! As the claimant in Genesis Housing Association Ltd v Liberty Syndicate Management Ltd [2013] EWCA Civ 1173 (04 October 2013) found.

In that case the claimant had taken out insurance to cover the work of a contractor named in the proposal form. In fact the contractor that did the work was another similarly named company.

The court had no problems disposing of the notion that the insurance proposal was not part of the insurance contract.

Which had been a contract to insure another contractor not the one who did the work so no surprises…….the claimant was not awarded any insurance pay out.

If all material facts aren’t correct (and all material facts disclosed) in the proposal form your insurance’s probably not worth the paper its written on.

One thought on “Get your insurance form right!

  1. Heather Haggis

    I can’t access the case, but I would be interested to find out if there was a broker and why this was not picked up with them?

    Yes there is a common law implied condition that the insured’s representations form the basis of the contract and all facts will be treated as material to the risk. If the facts are wrong, in the event of a claim, the insurer would treat the incorrect proposal form as a breach of the insured’s duty to disclose all material facts and can choose not to pay out in the event of the claim (check policy wordings to ensure there isn’t a warranty attached to the proposal form otherwise the insured can repudiate the contract).

    The claimant could have remedied the situation by informing the insurer and having the policy endorsed noting the correct sub contractor ( fee may have been charged for this) instead of going through the expense of going to court.

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