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Case Review: Insurance
Summary of some of the decisions made by the Mediators on some of the complaints received by FMB.
This summary is for information only and should not be used for other purpose.
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FMB/GI 0363 - Non-disclosure of Material Fact/Failure to Take Reasonable Precaution
The insurers declined the insured's claim for the loss of the insured vehicle on the following grounds:-
(1) Non-disclosure of previous loss; and
(2) Failure to take all reasonable precautions to safeguard the insured vehicle from loss.
It was revealed that the fact that the insured had suffered previous loss was within the insurers' knowledge as the stolen vehicle was also insured with the same insurers and the insurers had settled the insured's claim for the loss of the vehicle. Since the fact was within the insurers' knowledge, by virtue of section 150(2)(c) of the Insurance Act 1996, the insured was not required to disclose the fact. Thus the Mediator found there was no basis for the insurers to decline the claim on the ground of non-disclosure of material fact.
The insured vehicle was parked in front of the insured's house and it was properly locked. As reported by the adjusters the insured had to park the insured vehicle outside her house compound as other vehicles belonging to her family members were parked in the house compound. It is common for those who own more than one vehicles to park outside the house compound. The Mediator found that the insured had not failed in her duty to take all reasonable precaution to safeguard the vehicle from loss. Accordingly the insurers were held liable to indemnify the insured for the loss of the insured vehicle.
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