The Insurance & Savings Ombudsman has assisted an insured to obtain a settlement from her insurer over a disputed insurance claim.

The insured made a claim after her farm vehicle was stolen from where it was parked overnight.  The vehicle was found destroyed by fire and the insured made a claim for the loss.  During its investigation of the claim the insurer discovered that the ownership of the vehicle had been transferred from the insured to her grandson and the grandson was now the main driver of the vehicle.  He had criminal and traffic convictions and these were not disclosed at the time of the insurance being taken out.  The Insurance Ombudsman found that the insurer did not get the insured to complete its application form when she took out the policy.  That would have asked her specific questions about her criminal history and the criminal history of any person who would drive the vehicle.  There was also a question over what the broker knew about the insured and her grandson’s history. The broker arranged for the vehicle to be added to an existing policy without getting her to complete a full application form.

The insurer accepted that there were issues with how the policy had been organised and agreed to pay out the claim.

Alan Knowsley
Insurance Lawyer