An insurer has been ordered to reinstate a commercial motor policy and reassess a truck vandalism claim after failing to prove the policyholder breached its duty of disclosure around driving offences.

Suncorp, which appeared to have added up the licence suspensions of more than one driver, lacked the evidence to establish a breach and show withheld information would have led it to reject the risk, the Australian Financial Complaints Authority says.

The dispute – concerning a Hino truck covered via a broker – was lodged by the director of the insured company, his business partner and the latter’s brother.

Suncorp had declined the vandalism claim, arguing relevant driving and criminal histories were not disclosed before the policy began and it would not have offered the cover if they were.

But the claimant rejected this assessment, and it sought an additional payout for truck hire costs incurred while the insured vehicle was off the road.

AFCA finds the insurer relied in part on answers recorded in the certificate of insurance, but it says the certificate was probably issued after the policy began and there was no evidence showing how the answers were obtained.

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Suncorp’s underwriting material indicated one driving-related conviction would be accepted but more than one would be referred for further consideration. Separate guidance referred to three licence suspensions as grounds for declining a risk.

But AFCA says the specific question in the guidance read: “Has any person who is likely to drive the insured vehicle ...”

The ombudsman says this “indicates a single driver, not the cumulative history of all drivers of the insured vehicle”.

It says two licence losses appear to relate to one of the complainants and the third to another, rather than all three being for any nominated driver.

AFCA finds Suncorp has not shown the information, if disclosed, would have led it to refuse cover.

The policy was cancelled and premiums refunded through the broker, but AFCA says it must now be reinstated. The parties should arrange for the premiums to be repaid, or Suncorp can deduct outstanding amounts from any settlement.

See the ruling here.