Material non-disclosure
Insurance policies of any type are not worth the paper they are written on if you fail to make full and frank disclosure of all facts that might affect the risk that you wish to guard against.
In the case of Ashfaq v International Insurance Compay of Hanover PLC [2017], a property landlord found that out to his cost after neglecting to tell insurers that he was facing trial on an assault charge.
The man lodged a claim with insurers after a property that he let to students was gutted by fire. The proposal form for the insurance had specifically asked if he had any previous convictions or pending prosecutions, save in respect of motoring offences.
He answered that question in the negative although he was at the time awaiting trial on a common assault charge. He was subsequently convicted of that offence and received a £100 fine and a 24-month restraining order.
He launched proceedings against the insurers after they refused to indemnify him against his loss. His claim was, however, dismissed by a judge on the basis that it had no reasonable prospect of success. His non-disclosure of the pending prosecution was material and the insurers were entitled to refuse cover.
In dismissing his challenge to that decision, the Court of Appeal found that he had no viable argument that the relevant parts of the policy were unenforceable by virtue of the Unfair Terms in Consumer Contracts Regulations 1999.
The policy was commercial in nature, in that he was letting the property to students as a business, and he could not be viewed as a ‘consumer’ within the meaning of the Regulations. The insurers thus had an unanswerable defence to his claim.
[edit] Find out more
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
RTPI leader to become new CIOB Chief Executive Officer
Dr Victoria Hills MRTPI, FICE to take over after Caroline Gumble’s departure.
Social and affordable housing, a long term plan for delivery
The “Delivering a Decade of Renewal for Social and Affordable Housing” strategy sets out future path.
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
The proposed publicly owned and backed subsidiary of Homes England, to facilitate new homes.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).