In one case, a couple’s motor vehicle insurance policy was cancelled after their claim was found to contain misrepresentations regarding the nature and timing of the damage. The case was brought to the IFSO, which upheld the insurer’s decision to both decline the claim and void the policy.
The couple initially claimed their vehicle was damaged in a single incident involving a collision with a fence. However, the insurer’s investigation revealed three separate damage points that appeared inconsistent with the reported version of events.
The driver later admitted that part of the damage had occurred on a different date at a separate location.
“The test for a false statement is whether the statement was wrong, whether the person knew it was wrong when they made it, and whether it was relevant to the claim,” she said, as reported by RNZ.
In this instance, the driver attempted to include unrelated damage in the same claim, which would have affected the excess applied.
Following the incident, the couple’s details were added to the Insurance Claims Register (ICR), maintained by the Insurance Council of New Zealand (ICNZ).
ICNZ reiterated that trust is fundamental to the insurance process and that a history of misrepresentation can limit access to policies.
Glen McLeod, a broker at Link Advisory, noted that individuals facing such situations may still have options. Insurance advisers can sometimes assist clients with...
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