Farm Decision Reference 2022-0224

Case OutcomeRejected
Subject MatterFarm
Date04 July 2022
Finantial SectorInsurance
Conducts Complained OfRejection of claim - non-disclosure
Decision Ref:
Product / Service:
Conduct(s) complained of:
Rejection of claim - non-disclosure
The Complainant complains that the Provider wrongfully and/or unreasonably voided his
policy of insurance ab initio, on the basis of material non-disclosure.
The Complainant’s Case
The Complainant submits that in good faith he entered into the contract of insurance with
the Provider in 2013, and that that he disclosed details of all of his previous claims to his
broker, at the at the time of policy proposal.
He submits that the policy of insurance was renewed in 2014 and that he subsequently
submitted two claims under the insurance policy to the Provider, one in respect of a personal
injury incident and one for a broken television.
In relation to the personal injury accident claim which he submitted, he states that he had
to hire a contractor to run his business for a period of time and he says that he was informed
by the Provider that the cost of this would be covered under his claim, which would be paid
in full. The Complainant submits that he proceeded to pay the contractor to run the farm,
on the strength of the settlement of the claim”.
The Complainant contends that the fact the Provider settled the claim in respect of a broken
television, in September 2014, was “a clear indicator that there was nothing wrong with the
Policy”. He contends that it would have been otherwise impossible to have made a
successful claim on the policy, which he was subsequently told never existed.
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The Complainant submits that it is “totally unacceptable” of the Provider, to have led him to
understand, whilst he was paying a contractor for ten months, that there was no problem
with the policy. Likewise, he considers it unacceptable for the Provider to have cancelled
the Policy while his solicitor was trying to make contact with it, within the time frame
indicated by the Provider.
The Provider’s Case
This Provider notes that the policy in question was incepted through a Broker on 01
December 2013. It says that the submission forwarded with the Complainant’s proposal
form, made no mention of previous personal accident claims made.
The Provider submits that the covering letter which issued to the Complainant through his
Broker, at the inception of his policy with the Provider, detailed that:
"This document has been prepared on the basis of the information given by you or your
insurance broker and forms part of your Contract of Insurance (see Note)
The information you provided must have been given to the best of your knowledge and
belief. You should provide us with all relevant facts which may influence us as to
whether we accept your insurance, on what terms and conditions and at what
premium. If you are in any doubt whether a particular fact is relevant, you should still
declare it. Failure to disclose all material information or disclosures of false information
could result in the Policy becoming void in which case we would not be liable to pay
any claim. We recommend that you keep a record (including copies of letters) of all
information supplied"
The Provider submits that after the Complainant incepted cover with the Provider in late
2013, a personal injury claim was then notified to it on 23 March 2015. It says that as part
of its investigation into the claim, it discovered that the Complainant had made three
personal injury claims on his previous insurance cover, which had not been disclosed to it
when his policy had been incepted with the Provider in 2013. The claims details were:
2010/2011- Personal Accident - €400
2012/2013 - Personal Accident - €2,874.29
2012/2013 Personal Accident - €2,600.00
The Provider says that if it had been made aware of these claims at the relevant time when
the Complainant proposed for cover, it would not have agreed to provide insurance cover
to him, because these claims placed him outside of its new business acceptance criteria.

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