im worried insurance wont pay out

[reen]

I had two claims one in 2001 and 2002. I took insurance out in 2006 and but did not disclose the claims as the first one I couldnt remember if the insurance paid out it was about 400.00 a bike theft from gardan and the 2nd one was on one of my rental properties so I didnt think they needed to know for residentail properties. I took out the insurance in 2006 and still with the same company I was burgled a month ago my claim totalled about 8K. I was told to inform them of the previous claims because if they found out they would void it. Now the underwriters are looking into it.Does it mean they will ust void my insurance as they wouldnt want to pay out for the burglary

[pompeyfaith]

As they are older that 6 years ago im sure i can say you will be ok

[reen]

I took the insurance out in 2005 not 2006 and I am still with the same insurance company. They are saying I did not disclose it in 2005 at the time of my application.

[andie_303]

Sorry I know you aren't gonna want to hear this but I think they would be within their rights to void the policy and not pay any further claims - It will also mean that you will pay higher on any future premiums with other companies (as your current insurers will not allow you to continue with them) as you will now be classed as having insurance cancelled.

[reen]

Is this a fact or are you assumoing that is what they will do

[andie_303]

assuming thats why I said I think.

 

But I assume it to be more likely than not - or if they believe you were not deliberately obstructing them they will possibly make you a reduced offer on your claim - this does not happen very often in non-disclosure claims.

 

How long have they had your claim?

 

Have they told you they are investigating it?

[reen]

I told them I didnt know my rental property was disclosed to residential, The other one was long ago I dint think they paid out but I informed them.

The lady said they may void it it needs to be looked at by the under writers. The thing is if I had disclosed at the time I would have still been insured so hopefully they may just make me pay difference of premiums and reduce me claim

[andie_303]

what you say is correct they would have still insured you but at a higher premium and they COULD say you deliberately tried to mislead them in order to not pay this - not true - but thats what they could say.

 

If they have told you they could possible void it I would say that something is coming whether that a reduced offer or cancellation of insurance and no claim payout I'm not sure but it'll be one or the other.

[gyzmo]

You will need to look at what was asked in the application. Usually insurers put a time limit, such as claims in past 5 years.

 

The second point is whether your current claim and past claims are material. If, for example, your current claim is for subsidence (I'm only using examples here!) then a theft claim will have nothing to do with it.

 

The question asked must be a clear questions (not causing confusion) and your answer must lead the insurer to accept the policy when they otherwise would not have done.

 

I would wait to see what they say and take it from there.

[reen]

The only reason it is being rasied is because I took the insurance out in 2005 at the time it was not disclosed. They were storm damage and theft of a bycycle outside the house the first one was 2001 I didnt remember the insurance paying out hence why I did not mention as I had a memory loss for a lot of things around that time.The other storm damage. As I am still with the same insurers in 2009 I bought these to there attention. I could have left it but I remembered and said I best mention to them. The thing is had I changed insurers I would not have had to mention to them as it was past the 5 years. I have been told that if they would have insured me at the time they will just make me pay the difference of the premium. But Im not building my hopes up as I can imagine them not wanting to pay out for my claim

[gyzmo]

Well there is the issue of making a claim with insurers, and then the same insurer asking a question for information that they ought to have known the answer to anyway. In such a case I think all they can do is ask for additional premiums - but even then I think they will have a cheek.

"Well we would have charged you more had we known about those claims"

"Err, you did know - you were the insurer"

"Oh. Ummm, yes, well, err...."

[reen]

I called them up and told them. I dont think they would have known otherwise due to the time of the claim but was advised to do so. Im just waiting to see what they say now anyway. I have been told if they would have insured me with these claims they have to just reduce my claim by the additional premium. But who knows what they may want to do. I also think they way they should look at it although I should have told thme in 2005 had I changed insurers in 2008/2009 wouldnt have had to mention it. Oh and they were not the insurers the claims were with

[gyzmo]

It's a technicality, but they should not reduce the claim. They should ask for the additional premium and pay the full claim out. The only time they should reduce payment of a claim is if you are underinsured or there is more than only policy covering the same risk.

 

Like I said, wait to see what they say and then come back.

[reen]

Its odd I thought automatically they were going to void my claim although I am waiting for them to get back how ever even the financial omudsbusman said wait and see because they want to know on what grounds they would void it. They said I should just wait and see because I am proberly worrying over nothing. However becuase of the amount of the claim wouldnt they want to create some problem. Like voiding it and hope I accept it

[gyzmo]

I'd agree with the FOS

[reen]

I dont understand what you meant sorry

[gyzmo]

When the Ombudsman said not to worry so much - I'd agree with them. You'll probably be breathing a huge sigh once the insurer gets back to you!

[reen]

Your a star mate. Gosh I just cant wait 3 weeks for them to contact me though. A mate of mine said they wouldnt even have bothered telling them as it was some time ago. I suppose I thought it was a good idea at the time and would have been worse if they found out. I thought I was with prudential whne one happened when I called them they didnt even have a record of me?????