Declinature

Declinature

Refusal of an insurer or reinsurer to accept or renew an existing policy after careful evaluation of the application for insurance. The insurer may denied cover to a policyholder on the basis that their responses to a renewal form were either incomplete (non-disclosure) or misleading (misrepresentation). Facts by law where such a breach has occurred, the insurer can avoid the policy if it can show: the breach, or misrepresentation, “deliberate or reckless” or the “misrepresentation was careless”. However this declinature must not be out of invariable practice by the insurer, or policyholder could not be expected to know that the relevant information provided or not provided could trigger declinature, or the insurer did not have any waived compliance with the duty of disclosure. Recent case finds insurers may be entitled to rely on new grounds for declinature even if not referred to in original declinature letter. For example declining financial assistance to a policyholder through a period of disability to consider and rely upon new grounds of declinature of indemnity under a policy. When declinature arise you may check out other private insurance company that writes “high risk” insurance, in the case of car insurance some jurisdictions have a the state's assigned risk pool which provides cover for driver who are unable to get it ordinary covers. #benewinsurance #insurtech #inclusiveinsurance #insurance #reinsurance #takaful