Criminal past costs motor claimant
A motor policyholder who denied covering up her criminal history has lost a bid to have her insurer reinstate cover and accept claims for vehicle damage.
The woman argued her criminal convictions were not related to driving or dishonesty, and said she did not deliberately fail to reveal them when taking out cover on March 10 last year.
QBE discovered the non-disclosure after investigating claims lodged on June 16 and August 6 last year and said it would not have offered insurance if it had known of her history. It refused to cover the damage and cancelled the policy.
The insurer’s underwriting rules stated that if an applicant had been charged or convicted in the previous three years, the risk should be declined unless “extreme circumstances apply” – which it said was not the case in the disputed matter.
The claimant – who was convicted of two criminal offences in about August 2024 and April 2023 – said she thought the question related to the date of the offences or arrests, which were before the three-year period. She said the insurer’s decision was “excessive”.
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In a dispute ruling, the Australian Financial Complaints Authority says the insurer’s question was unambiguous, not limited to charges or convictions for driving or dishonesty, and related to dates of charges and convictions.
“I do not accept it was reasonable or likely the complainant would have interpreted this question to relate to the date of the offences,” an AFCA adjudicator says.
“On a balanced view of the exchanged information, the complainant has breached the duty to take reasonable care not to make a misrepresentation.”
The insurer wrote to the complainant on January 5 this year outlining reasons for the claim denial and policy cancellation, and a January 19 letter confirmed it had refunded premiums of $2060.
AFCA has also declined the complainant’s request for non-financial loss compensation, saying the insurer did not engage in concerning conduct.
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