The office of the ombudsman sees too many complaints where policyholders intentionally provide incorrect details at sales stage in the hope of paying a cheaper premium.
If a policyholder misrepresents or fails to disclose material facts to the insurer, your policy may be cancelled with effect from the start date.
In this event, the insured will be entitled to receive a refund of all premiums paid since the start date of the policy, but this can be cold comfort if you are faced with a big claim such as when your vehicle is a write-off or your house is burgled.
The duty of the policyholder to disclose does not end once the cover starts. You are required to inform your insurer of any material change to your circumstances throughout the life of the policy.
In the case of a car, such material change may include change in address, regular driver, number of claims submitted and so forth.
The policyholder is also required to be entirely truthful about the circumstances prompting a claim submitted to the insurer for payment.
The insurer needs to establish the facts sorrounding the loss so as to determine its liability in terms of the policy.
Most insurance policies contain a clause entitling the insurer to reject the entire claim even if just one aspect of it is found to be dishonest.
Therefore, to make sure you have valid and on-going civer, you as the policyholder need to pay close attention in your dealings with the insurer so as to always provide true and complete information, and make sure it remains up to date.


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