A recent case which made the national press serves as a reminder that it is very important to declare any convictions to the insurance company whenever taking out a policy. 

The case in question concerned a 51 year old woman from Barnsley, who had not told her insurer, Aviva, of a conviction and £150 fine for a benefits offence. Her home had been burned down by her estranged husband following a row at a 50th birthday party in 2007. He was jailed for 4 years for the offence. 

Aviva had spent £241,000 rebuilding the home, however, two weeks before she was due to move back into the house they found out about her 2002 benefits infringement, and demanded their money back. 

Aviva stated that “had she disclosed her previous fraud conviction we would not have offered her cover”. They were standing by their actions despite criticism from offenders support groups for failing to ask clear questions. 

Convictions (other than for driving) will influence an insurer’s decision on the moral hazard they are faced with in making their underwriting decision.  Insurance is founded on the principle of “utmost good faith” and so honesty, in all circumstances, is the best policy.  If in doubt as to what constitutes a conviction, please do not hesitate to contact us for advice. The benefits of having a Broker on your side cannot be underestimated.