Question on non-disclosure for insurance application

Last Updated on 23, March 2014

Question: “Dear Wilfred, I suffered from QQQ 10 years ago. I could not work for 2 days and was on MC. My doctor gave me medication and there was no relapse since. I applied for an insurance but my agent told me that I do not need to declare this condition. The policy was incepted already. Regards – M”

Dear M,

Due to deliberate non-disclosure, you have breached the principle of utmost good faith. Thus your policy is likely to be void. In the event which you made a claim (even if it unrelated to your condition) the insurer has the right not to pay because the contract is void from the beginning. You should now declare your condition to the insurer in writing and at the same time mention that you did declare your condition to the agent but he did not record it down.

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