insurance question....
Discussion
If one took out a fully comp policy and stated that you have 2yrs ncd when in reality you don't (but you've never had a claim). Say this policy was on a car worth £1500 and you have an accident and make a claim. Am I right in thinking that the insurance co won't cover your losses (if they discover your misrepresentation), but will the third party be covered anyhow. I know this is wrong, but its just a scenario that I'm investigating.
Baz
Baz
Technically you have mis-declared a material fact to the insurer; therefore they would be within their rights to terminate your contract summarily. As you are in possession of a Certificate of Motor Insurance which otherwise is valid, the third party can still make a claim and the insurer is obliged to pay; the insurer would almost certainly have recourse to you for their costs.
In reality a much more likely scenario is that they will reduce your NCD level to zero and take the difference in premium from you - unless the NCD level was a pre-requisite for offering cover e.g. a lot of places won;t cover under-25's unless they already have 2 or 3 years NCD, in which case the insurer will void the contract as falling outside their acceptance criteria.
Moral: don't lie to the insurance company...
In reality a much more likely scenario is that they will reduce your NCD level to zero and take the difference in premium from you - unless the NCD level was a pre-requisite for offering cover e.g. a lot of places won;t cover under-25's unless they already have 2 or 3 years NCD, in which case the insurer will void the contract as falling outside their acceptance criteria.
Moral: don't lie to the insurance company...
Thanks for the comments. I was just interested in acquiring info about possible consequences. I'm certainly not nor ever had the intention of using such a ploy. I'd have thought that some individuals would take such measures anyhow. However, could it not be argued that such a declaration is innocent misrepresentation i.e. you thought that you have never made a claim in 2 years so it would be logical to assume that you had 2yrs ncd (if you could convey that it was not made clear on the insurer's website how ncd was acquired which is often the case)?
Baz
Baz
baz1985 said:
Thanks for the comments. I was just interested in acquiring info about possible consequences. I'm certainly not nor ever had the intention of using such a ploy. I'd have thought that some individuals would take such measures anyhow. However, could it not be argued that such a declaration is innocent misrepresentation i.e. you thought that you have never made a claim in 2 years so it would be logical to assume that you had 2yrs ncd (if you could convey that it was not made clear on the insurer's website how ncd was acquired which is often the case)?
Baz
Not really as all companies will ask to see proof of NCD from your previous insurer - if you can't do this some companies/brokers will ring the old insurer on your behalf, some will just reduce your NCD and take the extra premium - so playing the innocent won't go very far...
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