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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 0250 - Non-disclosure of Death of Insured
The insured vehicle was involved in an accident on 2.9.2004 and sustained damages. The insurers declined the claim for the cost of repair of the insured vehicle on the ground that the insured had passed away on 19.3.2002 and the material fact was not disclosed to them. The beneficiary maintained that the death of the insured had been disclosed to the insurance agent who issued the Cover Note. The agent admitted that he was informed of the death of the insured and thus he issued the Cover Note which stated the insured as 'Non-driver'.
The insurers maintained that "although the agent was informed of the death of the insured the Cover Note was stated as 'Non-driver'. Non-Driver is usually stated when the insured does not have a licence or has the authorization to drive the vehicle".
The insurance agent should know the appropriate instance when to put 'Non-driver' on a Cover Note. The beneficiary should not be penalized for the mistake of the agent. The fact remains that the agent had knowledge of the death of the insured at the time he issued the policy.
Upon being queried the insurers revised their decision and settled the claim.
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