Conditions

Question 1

Duties of the insured

Answer 1

This states that the insured must observe and fulfill all the terms of the policy

Question 2

Alteration

Answer 2

The insured must notify the insurer of any changes that increase the risk.

This makes the duty of disclosure a continuing one throughout the duration of the policy.

Question 3

Action by the insured in the event of a claim

Answer 3

Procedure that must be followed by the insured in the event of a claim are set out here, including notification process.

Question 4

In the even of any fraud what could happen?

Answer 4

The claim may be rejected

Policy be cancelled

Insurer may retain any premium paid by the insured.

Question 5

Reasonable precautions

Answer 5

Insured must take all reasonable precautions to minimize the risk it loss or damage or incurring liability.

Act in a way as if they would be uninsured.

Question 6

Contribution

Answer 6

When one or more policy if indemnity covering the same risk, the insurer limits its liability to share of the loss.

Insured is obliged to claim proportionally from each insurer.

Question 7

Average

Answer 7

Is the policy holder in underinsured

The insurer has the right to pay only a rateable proportion of any claim, in line with the amount of under-insurance.

Question 8

Subrogation

Answer 8

The insurer has the right to take over the insured rights following a loss and a payment of a claim to recover the loss from the party responsible.

Policy condition allows the insurer to start to pursue recovery rights before payment of the loss.

Question 9

Arbitration

Answer 9

This states that any disputes regarding the amount to be paid in settlement if a claim will be judged by an independent arbitrator.

Question 10

Cancellation

Answer 10

Both insurer and insured have the right to cancel.

Question 11

What did the Deregulation Act 2025 change?

Answer 11

No longer a requirement to return the certificate of insurance when a motor policy is cancelled.

Question 12

Conditions precedent to the contract

Answer 12

Are those that must be fulfilled before the contract can be completed.

Failure to comply will in some cases render the policy ‘void’ (of no effect)

Question 13

Conditions precedent to liability

Answer 13

Those that must be fulfilled before the contract can by completed.

Failure to comply will in some cases render the policy “void” (of no effect)