It is important to be completely transparent when taking out an insurance policy. Indeed, even if you do not declare an aggravating factor, the insurer may insure you. However, you may have an unpleasant surprise in the processing of your claim on the day of the claim.
Keep proof of your good faith
When you have phone conversations with your insurer, we suggest that you create a file and keep a copy of the conversations to demonstrate that you have been completely transparent.
It may happen that the information in your file is not the same as the information you declared when you took out your insurance policy.
To obtain a copy of the audio CDs, simply request them from your insurance company; however, this is often laborious. You can also contact the
Insurance Ombudsman
.
Information to report to your insurer
You must declare to your insurer the circumstances that you are aware of and that are likely to significantly influence it in:
- risk analysis;
- its decision whether or not to accept the risk;
- or the establishment of the insurance premium.
Here are some examples of information that can be interpreted by the insurer as a breach of the insured’s duty to inform .
In the case of life or disability insurance, these include:
- Any forgetting to report a medication or health problem;
- Any failure to report a medical diagnosis or family history;
- Any forgetting to report a transaction;
- Any forgetting to modify a change in the situation during a renewal.
In the case of automobile insurance, we can count:
- Any automobile accident or disaster that has occurred in the past;
- Any conviction for an offence under the Highway Safety Code (tickets);
- Any conviction at the criminal level (criminal record);
- Any modification or addition to the designated vehicle;
- Any change in the personal situation of the insured or that of the drivers.
Report an increase in risk
As an insured, you must declare any increase in risk. For example, if you have a $30,000 stamp collection at home, there is certainly an increase in risk. If this particular factor is not disclosed , your insurer may decide not to cover for this loss.
It is still important to challenge the insurer’s decision with the help of a
member in good standing of the Law Society
since good faith is presumed. In addition, many decisions made by insurance companies are not justified.
Our firm offers several billing methods for this type of file, including a flat rate or percentage rate.
What to do in case of misrepresentation?
If you have made a false statement, your insurer can choose between cancelling the insurance policy or reducing the indemnity following a loss.
You have an obligation to cooperate with your insurance company, otherwise this reason may be invoked by the latter to refuse payment of the claim.
The insurer will certainly have you questioned by one of its claims adjusters in order to assess its own chances of success in court and to find contradictions or elements that will justify it not assuming the risk or assuming it only partially. Please note that the meeting with the claims adjuster can also be recorded.
In our experience, even when there is a meeting with a claims adjuster and a clear analysis of the files, the vast majority of cases end up in court. It is not advisable to try to defend yourself alone.
Do not hesitate to
contact us
in case of refusal of payment from your insurer.
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