DO YOU REALLY HAVE INSURANCE COVER ?

denied As can be seen from the section in our Website under the heading, “Refused Payment by your Insurance Company”, there are numerous incidences where a person believes that he has insurance cover when, in fact, the Insurance company can refuse to make a payout in the event of an incident.

This problem applies across the range of Insurances to include Motor, House , Personal etc.

There are various reasons why payment is declined principal among which is the failure to disclose a material fact.

You might think, “well, that does not apply to me !”…..but, are you sure ?

A case in point where the presiding Judge expressed considerable sympathy for the Claimants but still held that they were not entitled to recover from the insurance Company was the case of  Flynn and Mahon against Alliance. The Court held that there had been failure to disclose a material fact. The Claimants who were victims of a fire were left 131,734 out of pocket as a result.

This case also highlighted the need to advise your Insurance Company on renewal of any material changes.

The Claimants took out insurance in March 2005. The proposal form included a question as to whether either had been “charged with …any offence involving dishonesty of any kind”. On the second renewal of the policy, Mr. Flynn failed to disclose that he had been charged with possession of a drug for sale or supply.

The Court held that ,even though there had been no conviction at that point, the charge itself should have been disclosed and was material. On this basis, the Claimants failed to recover monies from the insurance Company.

Such is the “minefield” facing those who take out insurance ! Remember that it is only when a claim if filed that the repercussions of errors by the Insured hit home.

Incidentally, it made no difference in this case that the charges of possession against Mr. Flynn were dismissed by in December 2008.

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