You will be familiar with the process of applying for an insurance policy. Based on a quote generated by general questions either answered over the internet or by phone your insurers will give you a quotation.
Then, usually but not universally, a written version of your ‘proposal form’ will be sent to you. The word ‘proposal’ is important.
It’s about 2013
The proposal is a hangover of old law whereby you as a consumer proposed insurance to the insurer and they accepted the policy based on what you proposed. That was a rough and ready, but accurate, summary of the position prior to 2013. Post 2013 the law was made much more consumer friendly. Of course, your insurers will be checking your claims record and other claims linked to your address.
Tread earefully at this juncture. The question may be, ‘have you had any insurance claims?’ and that can include a claim for flooding in your house. It could also include a claim on travel insurance. If it is limited to a ‘motor claim’ then even your car being knocked by Mr Magoo’s short sighted grandad in a car park is something insurers can, at a later date, purport to find extraordinarily interesting.
One could ask whether or not an ordinary consumer would regard such an incident as relevant, so you do not mention it. You then pay your premium, having forgotten about the car park incident. Then your motorbike is stolen. So, after a number of questions all of which are designed to stop your claim, your insurer states, ‘you recklessly failed to declare a claim so we will void your policy’, if they succeed, you will be carrying that voidance for the rest of your days.
Wriggle out of paying
The real test is not what your insurers tell you, but was your failure to disclose reckless or a ‘deliberate misrepresentation’ – and those are very powerful words in the English legal lexicon.
Reckless means the willing taking on of an action, knowing the fact that what you are doing is wrong and in the circumstances is reasonably known to you to carry on with that risk. It is a very big leap from, ‘I genuinely believed this “accident” to be irrelevant,’ to imputing to you the knowledge of an insurance underwriter.
The words ‘deliberate misrepresentation’ bear their ordinary meaning. And stronger yet, the insurers will have to show they did not check the databases to which they all have access. Also, if they wish to carry on with the avoidance they will have to get an employee, in my opinion, to perjure themselves – a step which even the dodgiest of insurers would be reluctant to take.
However, many insurers will still try to wriggle out of paying so if you have a claim on your own insurance do not presume your insurers will honour their end of it. Be cynical.
If you crash your bike, you may wonder why the insurers are suddenly interested in your home bike security. They are looking for an escape route, so be on your guard.
Andrew Dalton
Ride Magazine February 2020
You also need declare claims where they are ‘no fault found’,ie when other party is found liable. Apparently you are more likely to claim again if you’ve been hit already! I found this out after they did their search and my premium went up and I got charged admin!
I got an insurance quote, then realised I hadn’t filled in the claims part of it. Filled out the online forms again with the claims added and to my surprise the price actually came out lower!
I have been doing this job for 27 years and back when I started riding in 1985 you basically got your bike insured by Norwich Union and they paid claims. But over the years claiming on your insurance seems to have become a blood sport where one fighter gets to make up the rules and pick the referee. Unfortunately MJ (terve sinun perheille) the claim only needs to make a superficial link but most insurers will draw up a link on address but surname, not so much. The basic takeaway – don’t trust the buggers.
Thanks Andrew for this article. It all makes sense to me. I have responded to the “have you had any claims” with the response, are we just referring to in my name motoring claims? My daughter had a claim while living at my address and it kept showing as mine!
Great words of wisdom on motorcycle insurance claims and disclosure of previous “global claims”. I have never considered my insurance company as my savior, only as the guy who will do all they can to get out of paying.